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Unemployment benefit bill approved by Cabinet


The Kuwaiti Cabinet has approved a draft bill on unemployment benefits to reduce the social and economic impact of the global economic crisis on local labour market.

During its meeting presided over by Acting Prime Minister and First Deputy Prime Minister and Defence Minister, Sheikh Jaber Mubarak Al-Hamad Al-Sabah at Seif Palace, the Cabinet approved the initiative after a lengthy discussion on the layoffs occurring in the private sector.

The global economic crisis had compelled several private firms to resort to lay-offs, between July 2008 and July 2009. The Kuwaiti government worked out a draft bill on insurance against unemployment, aiming to secure the economic interests of citizens and maintain social stability.

The draft legislation on unemployment benefits aims to lessen the gap between benefits of employees in public and private sectors, while also expanding the small enterprises.

This is inline with public assistance Law No.22 for 1978, the Minister of State for Cabinet Affairs, Roudhan Abdulaziz Al-Roudhan said after the meeting.

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