Losing a job is one of the most stressful experiences an employee can go through, and many don’t realise how many situations actually qualify for EIS support. Here are the categories of job loss that make an employee eligible to claim.
Categories Eligible for EIS Benefits
- Normal retrenchment or redundancy
- VSS/MSS (Voluntary or Mutual Separation Scheme)
- Closure of the company due to natural disasters
- Bankruptcy or closure of the company
- Constructive dismissal
- Resignation due to sexual harassment or threats made in the workplace
- Resignation after being ordered to perform dangerous duties outside the employee’s job scope
These categories reflect situations where the loss of employment wasn’t a straightforward voluntary choice, which is the underlying principle EIS is built around.
Remember the 60-Day Window
Falling into one of these categories isn’t enough on its own. An employee must also apply within 60 days of the loss of employment and meet PERKESO’s Contributions Qualifying Conditions. Missing the window can mean losing eligibility even if the situation clearly qualifies.
What Doesn’t Qualify
It’s worth knowing the flip side too: straightforward voluntary resignation, retirement, dismissal for misconduct, and expiry of a fixed-term contract generally don’t qualify. See our full breakdown of how to apply for EIS benefits for the complete eligibility picture and required documents.
Frequently Asked Questions
Does resignation ever qualify for EIS benefits?
Yes, in specific circumstances, such as constructive dismissal, resignation due to workplace harassment, or being ordered to perform dangerous duties outside the job scope.
What is constructive dismissal?
A situation where an employee resigns because the employer’s conduct made it impossible to continue working, effectively forcing the resignation. It’s treated as a form of dismissal, not voluntary resignation.
Does company bankruptcy qualify employees for EIS?
Yes, closure of a company due to bankruptcy is one of the recognised categories for EIS eligibility.
Related Reading
Supporting Employees Through Job Loss
If you’re an employer handling a retrenchment or restructuring, submitting the correct loss-of-employment record to PERKESO is what allows affected employees to actually claim. Talk to Righthouse’s EIS compliance team if you’d like this process handled correctly.
