The benefit accrues from the month in which the worker becomes redundant and is paid for a minimum period of one month and a maximum of twelve months. The scheme is also intended to enhance the employability of laid-off workers as at the time of application, the worker has to choose among three proposed possible options: a job placement, job training and re-skilling or starting a business. The Transition Unemployment Benefit ceases at the end of the month in which the laid-off worker becomes gainfully employed or starts a small business.

The scheme is financed by the employee, the employer and the government. The existing IT social security system helps in the operation of the scheme.