(1) Reasons for Proposal

This amendment aims to revise the rules by reflecting the relevant contents and establish and maintain related forms since the subject entity related to severance certificate affairs has been changed in accordance with the revision of the Employment Insurance Act (Act No. 16557, promulgated on Aug. 27, 2019, and to be enforced on Aug. 28, 2020); to change the application period for local employment promotion subsidies and reflect the details in the provisions and forms; to establish new ground provisions for supporting the work-based learning and new forms in accordance with the enactment of the Act on the Work-Based Learning at Industrial Sites (enacted on Aug. 27, 2019, and to be enforced Aug. 28, 2020); to improve the system of sanction charges and set the standard for the additional amount to be collected for unemployment benefits’ fraud to strengthen the ineffectiveness of employment incentives’ fraud; to reasonably improve the reporting reward system to prevent employment insurance benefits’ fraud; and to improve the civil affair forms to increase the convenience of the people and increase the efficiency of agencies implementing the affairs.

(2) Major Provisions

A. Provide procedures for submitting certificates of severance, etc. (Article 5 and Article 82-2) 

Certificates of severance, which should have been obliged to submit when the insured employees are severed, has been changed to submit when the severed employees apply for the submission in accordance with the revision of the Employment Insurance Act (promulgated on Aug. 27, 2019, and to be enforced on Aug. 28, 2020), and since the severance confirmation affairs have been reorganized from insured management duties to unemployment benefit duties, the subject entity of the affairs has been changed from the Minister of Employment and Labor (formerly entrusted to the Labor Welfare Corporation) to the head of the Employment Security Center, and thus, related provisions need to be revised.

B. Change the application period for local employment promotion subsidies (Article 41) 

Change the application period for local employment promotion subsidies to be applied every 3 months from the month following the month in which the business commencement date falls.

C. Provide supporting grounds for work-based learning (Article 60 and Article 60-2) 

As the enactment of the Act on the Work-Based Learning at Industrial Sites (enacted on Aug. 27, 2019, and to be enforced Aug. 28, 2020) has caused the Enforcement Decree of the Employment Insurance Act to stipulate that “accredited training courses under the Act on the Work-Based Learning at Industrial Sites” are also subject to support, it is necessary to stipulate the procedure for payment of subsidies, etc., in the Enforcement Regulation.

D. Improve the system of sanction charges on employment incentives’ fraud (Article 78) 

As the provision of criminal penalties for the employment incentives’ fraud has been established in the revision of the Employment Insurance Act (promulgated on Aug. 27, 2019, and to be enforced on Aug. 28, 2020), the amendment aims to set the scope of the additional amount to be collected by classifying the sanction surcharges on incentives’ fraud.

E. Provisions on the restriction of support due to fraudulent acts (Article 80) 

Amend the provisions referencing Article 35 (4) of the Act since the provisions of the Act have been newly inserted and changed in the revision of the Employment Insurance Act (promulgated on Aug. 27, 2019, and to be enforced on Aug. 28, 2020).

F. Improve personal identification means when applying for unemployment recognition (Article 89) 

Prescribe the use of personal identification means other than authorized certificates when applying for unemployment recognition through information communication networks (Article 89)

G. Prescribe the additional amount to be collected upon unemployment benefits’ fraud (Article 105) 

It is necessary to revise related provisions as the additional amount to be collected upon job-seeking benefits’ fraud has increased from the amount equivalent to the benefits’ fraud to within two times the benefits’ fraud (five time in case of collusion) in accordance with the revision of the Employment Insurance Act (promulgated on Aug. 27, 2019, and to be enforced on Aug. 28, 2020).

H. Correct the referenced provisions on the return of the overpayment or erroneous payment of job-seeking benefits (Article 106) 

Correct the provisions referencing the relevant provisions in the revision of the Article 62 of the Employment Insurance Act.

I. Improve the reporting reward system for benefits’ fraud (Articles 157 and 158) 

This amendment aims to reasonably improve the reporting reward system to prevent benefits’ fraud because employment insurance benefits’ fraud continues to occur.

J. Improve attached Forms (attached Form No. 2, 8, 8-2, 9, 36, etc.) 

This amendment aims to newly prepare an application form for issuing a certificate of severance; to revise forms by reflecting the change in the subject entity of severance certificate affairs and the change in the procedure for submitting the certificate of severance; to newly prepare a reporting form for measures for maintenance of employment and application forms for local employment promotion subsidies and work-based learning; to revise the early re-employment allowance application form; and to revise attached forms by reflecting the amendments related to the reporting awards.