The Colombian government through Law 1636 of June 18, 2013 created the Unemployed Protection Mechanism – MPC (due to its initials in Spanish)-. Through this mechanism the government seeks to mitigate the unemployment effects, to shorten the time of reincorporation to the labor market and to help the population in the search of work.
¿WHAT IS THE MPC?
The Unemployed Protection Mechanism seeks to guarantee the protection to the one becoming unemployed, guaranteeing up to six (6) month after the termination of its labor agreement, the following benefits: a) Access to health; b) Saving in Pension Funds; c) Family benefit; d) Access to labor intermediation and training.
¿TO WHOM THE MPC APPLIES?
This protection mechanism is applicable to all workers of the public and the private sector, dependent or independent making contributions to any family compensation fund. If with dependants, at least for one continuous or not continuous year in the last three (3) years and if dependant, at least for two (2) continuous or not continuous year in the last three (3) years.
¿WHAT DOES THE MPC ESTABLISHES VIS-A-VIS SEVERANCE PAYMENT?
Law 1636 of 2013 establishes a voluntary use of the contributions to severance payment, which consist that the workers may decide, in a voluntary manner, to destine a part of the severance payment as savings for the Unemployed Protection Mechanism.
¿THE WORKERS HAVING INTEGRAL SALARY MAY BE PRTECTED BY THIS MECHANISM?
Yes, the mentioned law establishes that the workers with integral salary may also be affiliated to the Unemployed Protection Mechanism and carry out a voluntary savings.
¿WHAT ARE THE BENEFITS THIS SAVING?
The persons making this saving at the time of becoming unemployed may request the withdrawal of the saved money. The State so as to encourage this saving will give a proportional monetary benefit to the amount saved, which shall be acknowledged by the FOSFEC.
¿WHAT IS THE FOSFEC?
The FOSCEC is the Solidarity Fund for the Promotion of Employment and Protection to the Unemployed. This fund will be financed by the funds managed by the Family Compensation Funds.
¿DOES THIS LAW ESTABLISH OBLIGATIONS FOR THE EMPLOYERS?
Yes, one of them establishes that within the three (3) days following the termination of a labor relationship, it will be mandatory that the former employer grants a letter to the worker certifying the termination of the labor relationship and the date of such termination.
¿WHICH ARE THE OTHER BENEFITS OF THE MPC?
The dependant and independent workers complying with the requirements shall be entitled at the time of becoming unemployed to the following benefits: a) that the FOSFEC makes contributions to the Health and Pension System calculated over one (1) Minimum Salary. b) The unemployed worker will have access to the monetary fee of the family benefit.
These benefits will be paid maximum for six (6) months.
¿WHICH ARE THE REQUIREMENTS TO HAVE THESE BENEFITS?
In the event of being a dependant worker, that the labor relationship has terminated due to any reason. And in the event of an independent worker, that the agreement has been terminated and that the individual does not have any other source of income; b) that the person is registered in any of authorized employment services and c) To be registered in any training program.
¿IS THERE ANY LIMITATION TO THE BEENFITS?
Yes, the persons having received these benefits during six (6) continuous or not continuous months during the last three (3) years may no receive these benefits.
¿THE BENEFITS CAN BE LOST?
Yes, the benefits are lost if the beneficiary does not assist to the job services offered. If the beneficiary rejects without justified reason the job offered by the Job Public Service , provided that this job allows him to earn a remuneration equal or exceeding the 80% of the last salary earned.
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