Constraints on receiving benefits due to improper acts
Requirements for denial of benefits due to improper acts
- Those who have received, or attempted to receive, unemployment benefits by fraud or other improper means shall be denied job-seeking benefits from the date when they received, or attempted to receive, unemployment benefits. (Body part of Articles 61(1) and 68(1) of the Employment Insurance Act)
- Provided, that the same shall not apply to subsequent eligibility for job-seeking benefits that may be approved after the severance from employment related to the denied benefits. (Articles 61(1) and 68(1) of the Employment Insurance Act)
Improper means subject to mitigated restriction on unemployment benefits
- If fraud or other improper means fall under the following category, employment promotion allowances shall not be denied (Only job-seeking benefits shall be denied during the period for recognition of unemployment). (Body part of Articles 61(2) and 68(2) of the Employment Insurance Act, Article 80 of the Enforcement Decree of the Employment Insurance Act)
· Where the eligible recipient omits to report a fact that he/she has provided his/her labor during a period for which he/she intends to have his/her status of unemployment recognized (hereafter referred to as "period of eligibility for recognition of unemployment" in this Article) or makes any untrue statements in filing an application for recognition of unemployment
· Where the eligible recipient makes any false statements on his/her re-employment activities during the period eligible for recognition of unemployment in filing an application for recognition of unemployment.
- Provided, that if such violations are committed on at least two occasions, no such mitigated restriction shall apply. (Articles 61(2) and 68(2) of the Employment Insurance Act)
Effects of denial of unemployment benefits due to improper acts
Effects of denial of job-seeking benefits
- Even if those who have received, or attempted to receive, unemployment benefits by fraud or other improper means are denied job-seeking benefits, they shall be considered to have received such job-seeking benefits for the purposes of applying Article 50(3) and (4) of the Employment Insurance Act. (Article 61(3) of the Employment Insurance Act)
- Even if those who have received, or attempted to receive, unemployment benefits by fraud or other improper means are denied job-seeking benefits, they shall be considered to have received job-seeking benefits, including for the days for which benefits have been denied for the purposes of applying Article 63(2) of the Employment Insurance Act. (Article 61(4) of the Employment Insurance Act)
※ Despite the above new eligibility, if a person who has received or attempted to receive job-seeking benefits by false or other fraudulent means has failed to receive job-seeking benefits three or more times for 10 years retroactively from the date of receiving the job-seeking benefits or reporting the unemployment recognition, he/she may not receive job-seeking benefits, for the period specified below from the date of receiving the job-seeking benefits by false or other fraudulent means or the date of reporting the unemployment recognition (Article 61(5) of the Employment Insurance Act andArticle 80-2 of the Enforcement Decree of the Employment Insurance Act).
√ If the number of times the job search benefit was not received is 3 times: 1 year
√ If the number of times the job search benefit was not received is 4 times: 2 years
√ If the number of times the job search benefit was not received is 5 times or more: 3 years
Effects of denial of employment promotion allowances
- Even if those who have received, or attempted to receive, unemployment benefits by fraud or other improper means are denied employment promotion allowances and thus denied early re-employment allowances, they shall be considered to have received the denied early re-employment allowances for the purposes of applying Article 64(4) of the Employment Insurance Act. (Article 68(3) of the Employment Insurance Act)
Penalty for improper acts for claiming unemployment benefits
Penalty for violations
- A person who receives unemployment benefits, etc. by fraud or other improper means shall be punished by imprisonment for not more than one year or by a fine not exceeding KRW 10 million. (Article 116(2) of the Employment Insurance Act)