There is also a way to use "deemed unemployment" instead of the Employment Adjustment Subsidy.

Some companies are considering using the Employment Adjustment Subsidy because their sales have plummeted due to the novel coronavirus, but the current situation is that it is not being widely used because it is still a complex system even if the number of application documents has been reduced.

✅ The Employment Adjustment Subsidy can only be received after paying leave allowances.

As a condition for the Employment Adjustment Subsidy, you can only apply after paying leave allowances. Some companies find it difficult to pay leave allowances after their sales have already plummeted. Furthermore, even if you apply, it will actually be deposited two months later (the government says they will decide on payment in less than a month, but I think that is difficult).

Until then, cash will continue to decrease, and in the end,the cash will run out and the company will go bankrupt.

Most companies cannot be saved by the Employment Adjustment Subsidy. Therefore, a possible measure is "deemed unemployment".

✅ What is deemed unemployment?

Deemed unemployment is intended to stabilize the lives of those who were forced to temporarily leave their jobs because the workplace where they were employed had to close due to a disaster, by providing them with the basic allowance of employment insurance unemployment benefits.

This deemed unemployment is described in Article 25 of the "Act on Special Financial Assistance, etc. to Deal with Severe Disasters".

Act on Special Financial Assistance, etc. to Deal with Severe Disasters
Article 25: Workers employed in applicable businesses as defined in Article 5, Paragraph 1 of the Employment Insurance Act (Act No. 116 of 1974) located in areas specified by Cabinet Order that have suffered severe disasters (excluding elderly insured persons as defined in Article 37-2, Paragraph 1 of the same Act, short-term employment special insured persons as defined in Article 38, Paragraph 1 of the same Act, and day laborer insured persons as defined in Article 43, Paragraph 1 of the same Act (referred to as "elderly insured persons, etc." in Paragraph 5 and Paragraph 7)), whenthe business office of said business has suffered a disaster, and the business has been forced to suspend or abolish operations, resulting in the worker being on leave, and despite having the will and ability to work, the worker is unable to work and is in a state of being unable to receive wages, then for the application of the provisions of the same Act, the worker may be deemed to be unemployed and be paid a basic allowance.However, this is limited to the period up to the date specified by Cabinet Order for each region, taking into account the situation of the disaster (hereinafter referred to as the "designated date" in this Article).

According to deemed unemployment, you will be in the same state as being unemployed and will be able to receive unemployment insurance immediately.

✅ The novel coronavirus must be certified as a severe disaster.

In order to apply deemed unemployment, the "Act on Special Financial Assistance, etc. to Deal with Severe Disasters" must be applied, but as a condition for that, the novel coronavirus must becertified as a severe disaster.

In the case of the Great East Japan Earthquake and heavy rain disasters, they were certified as disasters, and many people were saved by deemed unemployment. There is a question as to whether the novel coronavirus can be considered a disaster in the first place.

✅ What happens when you use deemed unemployment?

If deemed unemployment is applied, even if you have not quit your company,if the company is closed, it will be deemed that you are unemployed and you will receive unemployment insurance.Therefore, there is no initial expenditure where the company receives the subsidy after paying leave allowances, and employees can directly receive unemployment insurance instead of their salary.

✅ Problems when using deemed unemployment

The target persons who can use deemed unemployment are only those who are enrolled in employment insurance (employment insurance insured persons).Therefore, students who are not enrolled in employment insurance and part-time workers who work short hours are not eligible.
Regarding this point, the Emergency Employment Stabilization Subsidy can be used. This subsidy can be used even by those who are not insured under employment insurance (however, at present, it is a time-limited application until June 30).

When you receive unemployment benefits due to deemed unemployment,the period you were an insured person under employment insurance will be reset once.Therefore, if you intend to receive childcare leave benefits, there is a possibility that you will not be able to receive them because the count will start from zero.

✅ How to use deemed unemployment

To receive deemed unemployment, it is necessary to submit a "Notification of Loss of Qualification for Employment Insurance" and a "Certificate of Resignation for Employment Insurance" (procedure for issuing a separation notice).

In "6. Other" of "7. Reason for Separation" on the Certificate of Resignation,please clearly state that you were forced to be temporarily laid off because the business office was closed due to the disaster, and the scheduled date of re-employment for the separated person.

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