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Retention of unemployment benefit when sick
From 20 March 1996, unemployed people who are temporarily incapacitated for work no longer transfer from unemployment payments to sickness allowance.
These people remain on unemployment payments but are exempt from job search activity for the duration of their illness. People who become unemployed because of illness are paid unemployment payments rather than sickness allowance as they are unemployed. Sickness allowance is only paid to those people who will return to their jobs or education when they recover.
These changes were made to allow unemployed people who suffer short term illness to undertake part time employment if capable, and to maintain their eligibility for labour market programs.
It is estimated that these changes will affect an average of 24,500 people in 1996-97.
Implementation date: 20.03.1996
Branch: Sickness, Unemployment
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