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Changes to the norms on the recognition of citizens as unemployed

04.10.2022

The Committee on Economic Policy, Budget and Finance held a regular meeting. The agenda included changes to the republican budget, as well as other legislations aimed at supporting citizens and economic entities.

The law-in-draft "On amendments to the Law of the Pridnestrovian Moldavian Republic" On employment of the population" was considered among the legislative initiatives. The Government proposes to grant the right to be recognized as unemployed to two categories of citizens – founders (participants) of non-profit organizations whose organizational and legal form does not imply the right of founders (participants) to receive income from the activities of these organizations in case they lose their labor income (earnings) at the place of work; and citizens engaged in entrepreneurial activity without the formation of a legal entity, whose state registration as an individual entrepreneur has been recognized as invalid for certain reasons.

The categories of citizens who are considered employed are enshrined in the current version of the law. The founders (participants) of public and religious organizations (associations), charitable and other foundations, associations of legal entities (associations and unions) that do not have property rights in relation to these organizations are an exception in this case. That is, they do not receive income. They are still considered employed, and therefore cannot be recognized as unemployed, and as a result, they are deprived of the opportunity to receive unemployment benefits in case they lose their labor income (earnings).

As for individual entrepreneurs, according to the law "On Employment of the Population", sole proprietors whose patent has expired are recognized as unemployed in the absence of a suitable job. They remain in the registry at the same time. Amendments to the law proposed by the Government propose to eliminate contradictions by clarifying the conditions for recognizing unemployed citizens engaged in entrepreneurial activity without forming a legal entity.

The Committee on Economic Policy recommends that the Supreme Council adopt the law-in-draft in the first reading.