Return of unemployment benefits received through improper acts
Criteria for return
- A person who has received unemployment benefits by fraud or other improper means may be made to repay all or part of the benefits paid under the following criteria. (Article 62(1) of the Employment Insurance Act, Article 104 of the Enforcement Rules of the Employment Insurance Act)
1. To return unemployment benefits received in full
2. (Notwithstanding the foregoing) To return only unemployment benefits received during the unemployment period recognized for such a reason, where the following is the case (Article 80 of the Enforcement Decree of the Employment Insurance Act) (concerning improper act perpetrated on only one occasion)
1) 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 or makes any untrue statements in filing an application for recognition of unemployment
2) Where the eligible recipient makes any untrue statements on his/her re-employment activities during the period eligible for recognition of unemployment in filing an application for recognition of unemployment.
※ Where a daily worker hired for less than a month has reported that his provision of paid work during the period of unemployment, for which he/she intends to obtain recognition and the difference between the number of days he/she provided work and the number of days actually recognized during the period comes to three days or less, he/she shall be made to return only unemployment benefits received for the recognized unemployment period.
3. Where a person reports his/her improper act voluntarily before the investigation of him/herself or the workplace by the head of the employment center as a person for whom mitigated restriction on unemployment benefits applies, he/she shall be made to return only unemployment benefits received for the recognized unemployment period concerning the days he/she provided work. (This shall apply only once based on a voluntary report.)
Collection of additional amount due to improper receipt of unemployment benefits
Amount of additional amount collected
- A person who has received unemployment benefits by fraud or other improper means may be made to repay all or part of the benefits paid under the following criteria. Such a person may be made to pay an additional amount not exceeding the full amount subject to repayment that such person has received by fraud or other improper means. Such a person may be made to pay an additional amount as stated in the following if one of the following is the case. (Article 62(1) of the Employment Insurance Act, Article 105(1) of the Enforcement Rules of the Employment Insurance Act)
1. A daily worker whose number of days of work comes to less than 10 days in one-month period before the day of application for recognition of eligibility for benefits at his/her most recent employment. (Article 40(1)-5 of the Employment Insurance Act) Where his/her benefits received exceed what he/she is actually eligible for by 3 days or less: 30/100
2. Where a daily construction worker (a person engaged in construction business in the large category of the Korean Standard Industry Classification as announced by the Commissioner of Statistics under Article 22(1) of the Statistics Act) as of the time of the most recent severance from employment was actually working for 3 days or less during the 14 days period when there has to be no consecutive work under will 40(1)-5-B of the Employment Insurance Act: 30/100
3. One for whom the foregoing 1 or 2 does not apply; one has cooperated with the investigation of improper acts and promised in writing to immediately return the amount that he/she received dishonestly: 60/100
Exemption from additional collection
- For the following persons, additional collection stated in the foregoing may be exempted. (Article 105(2) of the Enforcement Rules of the Employment Insurance Act)
· A person who reports his/her improper act voluntarily before the investigation of him/herself or the workplace
· A person associated with improper means subject to mitigated restriction on unemployment benefits (Article 80 of the Enforcement Decree of the Employment Insurance Act) (This shall apply only to the first improper act.)
· A person recognized as in very needy circumstances by the head of the employment center
Employer’s responsibility
Employer’s joint responsibility
- If fraud or other improper means involves any false report or certification by a business owner (including an agent or employee of, or any other person employed by the business owner), the business owner shall be jointly and severally liable with the eligible recipient of the improperly paid job-seeking benefits. (Article 62(2) of the Employment Insurance Act, Article 15 of the Regulations for Handling the Business for Prevention of Improper Claims for Unemployment Benefits and Relevant Investigation)
Procedure for return of unemployment benefits paid
Decision on return and collection
- When the head of an employment center makes a decision to restrict the payment of job-seeking benefits, have job-seeking benefits returned, or collect an amount equivalent to the amount of job-seeking benefits, he/she shall inform the relevant eligible recipient (including the business owner under Article 62(2) of the Act) of his/her decision without delay. (Article 81(1) of the Enforcement Decree of the Employment Insurance Act, Article 106(1) and Annex Form 93 of the Enforcement Rules of the Employment Insurance Act)