Unemployment Provision Convention, 1934 (No. 44) - Peru (Ratification: 1962)

Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Previous comments: observation (2010); direct request (2019).

The Committee notes the observations of the Autonomous Workers’ Confederation of Peru (CATP), received on 1 September 2023. The Committee requests the Government to provide its comments in this regard.

Article 1 of Convention No. 44. Establishment of an unemployment insurance system. The Committee notes the information provided by the Government in its report indicating that since 2020 a project has been under development entitled “Strengthening social protection in relation to unemployment in Peru”, which is executed by the ILO with the participation of the Ministry of Labour and Employment Promotion. According to the Government, ILO technical assistance is intended to promote the design and development of a complete protection system for unemployment, by improving the protection of workers in the event of the loss of their jobs and supporting the development of a new policy to improve employability. Finally, the Committee observes that on 3 July 2023 Bill No. 05510/2022-CR respecting the Unemployment Insurance Act was submitted to the Congress of the Republic. In this context, the Committee welcomes the efforts made, trusts that an unemployment insurance system will soon be established in conformity with the Convention, and requests the Government to provide information on the progress achieved in this respect.

Part XIII (Common provisions). Article 72(1) of Convention No. 102. Participation of insured persons in management. Health system. The Committee once again requests the Government to adopt the necessary measures to guarantee the right of insured persons to participate in a consultative capacity in the management of private institutions providing health services, in conformity with the requirements of the Convention.

The Committee is raising other matters in a request addressed directly to the Government.

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee notes the Government’s report, received in September 2010. The Committee observes that for the last 20 years the Government continues to refer to the system of compensation on the basis of length of service established by Legislative Decree No. 650 of 1991, which may not be considered as constituting an unemployment protection system in accordance with the requirements set forth in this Convention. The Committee regrets to note that the Government has been unable to set up an unemployment insurance scheme, which it had pledged to establish when ratifying the Convention half a century ago. The Committee wishes to draw the Government’s attention to the Committee’s recommendation made in its comprehensive observation published in the report of 2010, concerning the need to elaborate a national strategy in Peru for the consolidation and development of a sustainable social security system, which would allow the State to fully exploit all of the potential offered by international social security standards to ensure the good administration of the schemes and allow the gradual extension of coverage to the entire population. In this context, the Committee hopes that the Government will spare no effort in the very near future to set up an unemployment insurance system in accordance with the Convention.

Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes that, despite the Government’s indication in its previous report of its willingness to establish an unemployment insurance system in order to conform to the provisions of the Convention, no actual measures have been adopted in this regard. In view of the many years which have passed since the Convention was ratified by Peru, the Committee once again expresses the hope that the Government will pursue the initiative to establish an unemployment insurance system in the country. To this end, the Committee invites the Government to do everything possible to undertake the actuarial studies in the near future which are an essential prerequisite to the establishment of such a system. In this regard, the Committee recalls that, in order to give effect to the Convention, ratifying States must guarantee to involuntarily unemployed workers benefits or allowances paid under a scheme which may be a compulsory insurance scheme, a voluntary insurance scheme, a combination of a compulsory and voluntary insurance scheme, or any of these alternatives combined with a complementary assistance scheme (Article 1 of the Convention).

[The Government is asked to reply in detail to the present comments in 2010.]

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes that the Government’s report has not been received. It is therefore bound to repeat its previous observation which read as follows:

In its previous observation, the Committee had noted the lack of progress towards the implementation of an unemployment protection system, as provided for in the Convention. In this regard, the Committee observes that, while the Government continues to refer, as it has done up until now, to the system of compensation on the basis of length of service (Presidential Decree No. 001-97-TR) and the existence of compensation for unjustified dismissal (Legislative Decree No. 728, approved by Presidential Decree No. 003-97-TR), which may not be considered as constituting an unemployment protection system in accordance with the requirements set forth in this Convention, it indicates that recent draft laws contain proposals for the creation of an unemployment insurance system. The Government adds, however, that it does not yet have all the necessary data on the subject and that a preparatory study is currently aimed at determining the sustainability of an unemployment insurance system. The report also indicates that the various draft laws on the subject will be examined with a view to achieving consensus between all the social actors concerned by an unemployment insurance system.

The Committee notes this information. It notes that, henceforth, the Government appears to be studying in depth the creation of an unemployment insurance system with a view to bringing its national legislation into line with the provisions of the Convention. The Committee recalls that it is now over 40 years since Peru ratified the Convention and hopes that the Government will keep it duly informed of the results of the current initiative and that it will spare no effort to ensure that the necessary actuarial studies are carried out in the very near future and to establish an unemployment insurance system in accordance with the Convention. In this regard, the Committee recalls that, in order to give effect to the provisions of the Convention, ratifying States must ensure a benefit or an allowance to persons who are involuntarily unemployed, by means of a scheme which may be a compulsory insurance scheme, or a voluntary insurance scheme, or a combination of compulsory and voluntary schemes, or any of these alternatives combined with a complementary assistance scheme (Article 1 of the Convention).

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the report submitted by the Government in response to its previous observation, in which it had noted the lack of progress towards the implementation of an unemployment protection system, as provided for in the Convention.

In this regard, the Committee observes that, while the Government continues to refer, as it has done up until now, to the system of compensation on the basis of length of service (Presidential Decree No. 001-97-TR) and the existence of compensation for unjustified dismissal (Legislative Decree No. 728, approved by Presidential Decree No. 003-97-TR), which may not be considered as constituting an unemployment protection system in accordance with the requirements set forth in this Convention, it indicates that recent draft laws contain proposals for the creation of an unemployment insurance system. The Government adds, however, that it does not yet have all the necessary data on the subject and that a preparatory study is currently aimed at determining the sustainability of an unemployment insurance system. The report also indicates that the various draft laws on the subject will be examined with a view to achieving consensus between all the social actors concerned by an unemployment insurance system.

The Committee notes this information. It notes that, henceforth, the Government appears to be studying in depth the creation of an unemployment insurance system with a view to bringing its national legislation into line with the provisions of the Convention. The Committee recalls that it is now over 40 years since Peru ratified the Convention and hopes that the Government will keep it duly informed of the results of the current initiative and that it will spare no effort to ensure that the necessary actuarial studies are carried out in the very near future and to establish an unemployment insurance system in accordance with the Convention. In this regard, the Committee recalls that, in order to give effect to the provisions of the Convention, ratifying States must ensure a benefit or an allowance to persons who are involuntarily unemployed, by means of a scheme which may be a compulsory insurance scheme, or a voluntary insurance scheme, or a combination of compulsory and voluntary schemes, or any of these alternatives combined with a complementary assistance scheme (Article 1 of the Convention).

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes the observations made by the World Federation of Trade Unions (WFTU), which were forwarded to the Government in August 2002. The WFTU denounces the significant number of dismissals in the company Telefónica del Peru and stresses their significant social impact, which has aggravated the unemployment problem. In this respect, the Committee refers to the comments that it is making on the application of the Employment Policy Convention, 1964 (No. 122).

The Committee also refers to the observation that it made in 2000 on the application of this Convention and hopes that the Government will provide the information requested in its next report.

[The Government is asked to report in detail in 2004.]

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

In reply to the Committee’s previous comments, the Government refers once again to the compensation received by workers on the basis of length of service, which is considered to be a social benefit intended to cover the contingency arising out of the termination of the employment relationship and which is designed to assist the worker and his family (Presidential Decree No. 001-97-TR), and to the compensation for unwarranted dismissal (section 34 of Legislative Decree No. 728, approved by Presidential Decree No. 003-97-TR). The Government adds that the establishment of an unemployment insurance system depends on the existence of a fund to support it, which can be financed by employers’ or workers’ contributions. The Government could promote the adoption of regulations on this matter, but the cost of such a system would have to be borne by the workers or the employers.

The Committee notes this information. It emphasizes once again that neither the benefit for unwarranted dismissal, nor the compensation based on length of service constitutes a system of protection against unemployment in accordance with the requirements set out in the Convention. The Committee recalls that, to give effect to the Convention, the States which have ratified the instrument have to guarantee to workers who are involuntarily unemployed a benefit or allowance paid through a scheme which may be a compulsory insurance scheme, a voluntary insurance scheme, a combination of compulsory and voluntary insurance schemes, or any of the above alternatives combined with a complementary assistance scheme (Article 1 of the Convention). The Committee notes that the information provided by the Government on this subject does not show any progress towards the implementation of an unemployment protection sytsem, even though this Convention was ratified by Peru nearly 40 years ago. While aware of the economic impact of the establishment of such a system, the Committee hopes that the Government will be able to re-examine the situation and that it will be in a position in its next report to indicate the measures which have been taken or are envisaged to establish an unemployment protection system in accordance with the provisions of the Convention.

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

In reply to the Committee's previous comments, the Government refers once again to the compensation received by workers in the event of unwarranted dismissal (Legislative Decree No. 728, approved by Presidential Decree No. 003-97-TR). The Government recalls that Article 1 of the Convention permits a choice between the payment of a benefit, an allowance or a combination of benefit and an allowance, and it has opted for a benefit. Furthermore, this Article defines a benefit as a payment related to contributions paid in respect of the beneficiary's employment whether under a compulsory or a voluntary scheme. The Government adds that, since the law in Peru envisages the payment of a benefit for unwarranted dismissal, it is therefore compulsory. Consequently, the Government considers that the indemnity provided for unwarranted dismissal gives effect to the Convention. Furthermore, it refers once again to the compensation provided related to the length of service (Presidential Decree No. 001-97-TR) which constitutes an additional measure for the financial protection of workers whose employment relationship is ended involuntarily.

The Committee notes this information. It is bound to remind the Government that the benefit for unwarranted dismissal cannot constitute a system of protection against unemployment in accordance with the requirements set out by this Convention. States which have ratified the Convention have to guarantee a benefit to any worker who is involuntarily unemployed, and not only to those who have been subject to unwarranted dismissal. Moreover, the compensation related to length of service provided to certain workers at the end of their employment relationship, irrespective of the reason for which the relationship is terminated, cannot be assimilated to an unemployment benefit system, in accordance with the provisions of the Convention.

The Committee places particular emphasis on the need to establish a system of protection against unemployment, in accordance with the provisions of the Convention, in view of the comments received from the World Confederation of Trade Unions (WCTU) reporting the policy of massive reduction of personnel by the company "Telefónica del Péru S.A." following the sale of its shares by the Government.

The Committee trusts that the Government will re-examine this question in the light of the above comments and requests it to indicate in its next report the measures which have been taken or are envisaged to give effect to this Convention, which was ratified by the Government of Peru over 35 years ago.

[The Government is asked to report in detail in 2000.]

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes the Government's report which indicates that under Legislative Decree No. 650 of 23 July 1991, issuing the Act on compensation for time spent in employment, such compensation amounts to a social benefit to cover contingencies caused by lay-offs and to promote the worker and his family. The Government adds that the law on employment promotion (Legislative Decree No. 728, November 1991) establishes the right of workers to be paid compensation for unwarranted dismissal. The Government thus reiterates its opinion in previous reports that the legislation ensures economic protection for a worker who becomes unemployed to cover his expenditure until he finds a new job. In a communication of 10 June 1993 the Government confirms that compensation for dismissal is instead of unemployment insurance which would be extremely costly. The Government asserts that the relevant provisions of Peruvian law are in keeping with the definition of compensation contained in Article 1 of the Convention.

The Committee notes the foregoing but points out, as it did in earlier comments, that the legislation referred to by the Government does not constitute a system to provide unemployment benefit or allowance in conformity with the provisions of Convention No. 44. The Committee would also like to point out that, in order to give effect to the provisions of the Convention, ratifying States must ensure a benefit or an allowance to persons who are involuntarily unemployed, by means of a scheme which may be a compulsory insurance scheme, or a voluntary insurance scheme, or a combination of compulsory and voluntary schemes, or any of these alternatives combined with a complementary assistance scheme (Article 1 of the Convention). In these circumstances, the Committee hopes that the Government will review the situation and that in its next report it will be able to indicate the measures adopted or contemplated to establish an unemployment protection scheme as required by the provisions of the Convention.

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

With reference to its previous comments, the Committee notes the information supplied by the Government in its report in which it refers to the consultations held with the representative organizations of employers and workers to establish an unemployment insurance scheme in accordance with the fundamental provisions of the Convention. The Government states that it has received partial replies and is awaiting further information in order to be able to give a more comprehensive opinion.

The Government refers to the provisions of Act No. 24514 of 1986 regulating the right to employment stability, as well as the supplementary provisions in this respect (Presidential Decree No. 003-88-TR, of 1988) and the Employment Promotion Act of 1991. The Committee notes that the above texts contain provisions which enable workers to benefit from compensatory benefits in the event of the termination of the employment relationship, but that they do not provide for an unemployment insurance system in accordance with the provisions contained in the Convention.

The Government refers to the difficult economic situation through which the country is passing and the heavy economic burden of social security contributions. In the Government's opinion, an unemployment insurance system which accords with the provisions of the Convention would be unacceptable, since it would have to be financed by contributions paid by the State, employers and workers, who would not be in a position to undertake such obligations.

The Committee also notes the comments of the Trade Union of Employees of Hierro Perú, which were transmitted to the Government in October 1992, in which the consequences are described of a programme to rationalize the labour force, which affected 850 workers in January 1992. A subsequent reduction in staff is alleged to affect another 700 workers, but no programme has been established to deal with their uncertain economic future. The Front for the Defence of the Rights of the People of Marcona also contacted the Office to support the comments made by the Trade Union of Employees of Hierro Perú.

In its reply, the Government states that it inherited an economy which was in a totally chaotic state, and that the situation of public enterprises was critical. Among the measures which have been envisaged, Hierro Perú has been included in the process of the promotion of private investment, and has been privatized and now operates under another name. It states that the privatization programme was based on the concept of reorienting the economy towards the market in order to improve the living standards of the population.

The Committee is bound to emphasize the importance of giving effect to the obligations deriving from the Convention, which was ratified in 1962, and which contains standards relating to unemployment insurance and various forms of relief for the unemployed. It requests the Government to supply information in its next report.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee observes with regret that, for the second time in succession, it has not received the Government's report. Consequently the Committee is compelled to ask the Government once again to supply information on the outcome of the announced consultations with representative organisations of employers and workers to enable them to express their views concerning the problems presented by the application of the Convention and ways of solving them.

In view of the years that have elapsed since the ratification of this Convention, the Committee expresses the hope that the Government will do everything in its power to give effect to the provisions thereof. In this connection the Committee ventures to suggest to the Government the possibility of having recourse to the International Labour Office for the necessary assistance in instituting, by methods suited to the country's needs and capacities, an unemployment insurance scheme in conformity with the fundamental provisions of this Convention.

Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

With reference to its previous comments, the Committee takes note that the Government has requested employers' and workers' organisations to give their opinion on the problems encountered in the application of the Convention and the measures needed to solve them; these opinions will be assessed in order to determine whether or not the Convention should be denounced.

TEXT

The Committee requests the Government to provide information on any developments resulting from these consultations.

Observation (CEACR) - adopted 1988, published 75th ILC session (1988)

With reference to its previous comments, the Committee takes note that the Government has requested employers' and workers' organisations to give their opinion on the problems encountered in the application of the Convention and the measures needed to solve them; these opinions will be assessed in order to determine whether or not the Convention should be denounced.

The Committee requests the Government to provide information on any developments resulting from these consultations.