Definition
Introduced in February 2009, the Transition and Unemployment Benefit is payable to Mauritian workers of private sector whose contract of employment is terminated under the Workers' Rights Act 2019 and who have been registered in the workfare programme.
LEGISLATION
1.
THE EMPLOYMENT RIGHTS ACT 2008
Act No. 33 of 2008, into effect as from feb.2009
2. As per circular letter no. 2 of 2009 dated 27/01/2009 from Commissioner, Social Security
Objective:
Ensuring appropriate protection to workers at time of distress especially when a worker's employment has been terminated.
WORKER- TO JOIN THE PROGRAMME
- A worker contributing to NPS loses his job
- And also a worker whose employment has been terminated shall be entitled to join the Workfare Programme.
"worker" does not include –
(a) a public officer;
(b) a person employed by a parastatal body or by a local authority;
(c) a part-time worker;
(d) a migrant worker;
(e) a worker employed in the sugar industry who voluntarily retires –
(i) in the context of a Voluntary Retirement Scheme under section 23 of the Sugar Industry Efficiency Act 2001;
(ii) an Early Retirement Scheme under section 23A of the Sugar Industry Efficiency Act 2001; or
(iii) a factory closure pursuant to section 24 of the Cane Planters and Millers Arbitration and Control Board Act;
(f) a person reckoning less than 6 months continuous employment with an employer as at the date of the termination of his employment
Workfare programme shall consist of:(sect.41(2))
- Payment of a transition unemployment benefit to every worker whose (employment ) agreement has been terminated and who opts to join the workfare programme
- Assistance by the relevant statutory body (human resource development council to a training or re-skilling scheme, or sets up small business with the help of Small Enterprises and Handicraft Development Authority)
1. for job placement.
2. training and re-skilling by the HRDC or
3. starting up of a small business by SEHDA
What the worker has to do (sect. 42 (2) (a) )
- He shall register himself with the Permanent Secretary (MOL) within 7 days of the termination of his employment
-The PS may extend the time if good cause is shown
TRANSITION UNEMPLOYMENT BENEFIT
(6th schedule)
- Every worker registered in the Workfare Programme shall be entitled to a transition unemployment benefit for a minimum period of one month and a maximum period of 12 months as follows:
Period after termination of employment
| Rate of benefit per month
|
First 3 months
| 90 % of basic wage or salary but not less than RS 3000 |
From 4th month to end of 6th month
| 60 % of basic wage or salary but not less than RS 3000 |
| From 7th month to end of 12th month | 30% of basic wage or salary but not less than RS 3000 |
TUB (transition unemplo. Ben.)- CESSATION (SECT.44 (4) ) :-
will cease as from the end of month in which the worker:
(a) opts out of the Workfare Programme;
(b) becomes gainfully employed;
(c) refuses an offer for job placement for a second time;
(d) is admitted by the Human Resource Development Council to a training or re-skilling scheme;
(e) sets up a small business with the assistance of the Small Enterprises and Handicraft Development Authority; or
(f) reaches the retirement age
However, where a worker becomes gainfully employed, he shall notify the P.S. within 7 days of the day he became gainfully employed (sect. 44 (5) )
Workfare programme fund (sect. 45)
The account of the fund to be known as Workfare Programme Account, and managed by the National Savings Fund, which will be credited:
There shall be paid into the Workfare Programme Fund –
(a) money collected by way of levy at the rates specified in the Second Schedule of the Human Resource Development Act 2003;
(b) all monies appropriated by the National Assembly for the purposes of the Workfare Programme; and
(c) interests on investments.
Human Resource Development (HRD)
levy (ex- IVTB Levy)
Section 18 of the HRD Act 2003 has been amended to make provision for
1. Increase in the rate from its present 1% of “total basic wage bill" of insured persons to 1.5% per month
2. Out of the 1.5 % levy collected, 0.5% will be remitted to HRD Council for training purposes and the remaining 1% will be credited to the Workfare Programme Fund for the purpose of financing the TUB.
How it is financed (seventh schedule)
1. The Transition Unemployment Benefit shall be financed from –
(a) the 1 per cent contribution of the worker in the National Savings Fund Account of the worker and any interests accrued thereon, to the level of 50 per cent of the Transition Unemployment Benefit;
and
(b) the Workfare Programme Fund to the level of 50 per cent of the Transition Unemployment Benefit.
2. Where the accumulated funds under paragraph 1(a) are not sufficient, any shortfall to the set rates shall be met from the Workfare Programme Fund
