Recently, the cabinet approved a reform of unemployment benefits that raises the payment level and broadens eligibility, along with ending the automatic dismissal rule in cases of permanent disability.
The reform of the unemployment assistance provision was returned to the cabinet after stalling in parliament last January, where it faced opposition from major parties. It is linked to an anticipated 10 billion euro disbursement from European funds, underscoring its significance for fiscal planning in both Canada and the United States contexts.
The government also endorsed another change in labor law related to dismissals in permanent disability cases, a policy advance previously highlighted by the Deputy Prime Minister.
The reform eliminates the presumption that contracts automatically terminate on disability and instead ties any potential exit to the worker’s preferences, the possibility of adapting their role, or moving to a more suitable position.
Under the new rules, an employer cannot terminate a contract simply because the worker requests reasonable adjustments to their role to continue employment.
Where such adjustments would impose an excessive burden on the employer, the reform allows switching to another vacant role compatible with the employee’s new situation.
To judge whether the burden is excessive, the law leaves room for interpretation and states that it will not be excessive if public measures, aids, or subsidies can sufficiently alleviate the burden for people with disabilities, or if the adjustments would entail high financial or other costs relative to the company’s size and revenue.
In short, the reform reshapes how disability-related job changes are handled, prioritizing worker accommodation while balancing business realities and public support mechanisms.
According to observers, the changes aim to reduce involuntary separations and improve long-term labor market inclusion, signaling a shift toward more flexible employment practices and enhanced worker protection in the face of disability in the workforce. [Source: Government briefing, 2024]