Employee resigns within 6 months of childcare leave gets subsidy payment

Employers will now receive the full government subsidy for childcare leave, even if an employee voluntarily resigns within six months of returning to work. Previously, the subsidy was only paid if the employee remained employed for more than six months.

On Tuesday, the Ministry of Employment and Labor announced that a 40-day legislative notice period will begin to partially revise the Employment Insurance Act’s subordinate statute to implement these changes. Under the new rules, employers who receive the employment stabilization incentive for childbirth and childcare will be eligible for the entire subsidy even if employees who used childcare leave or reduced working hours for childcare voluntarily resign.

Currently, only half of the incentive is paid during the childcare leave period, while the remaining half is given to the employer after the employee returns and remains with the company for over six months. However, if the employee leaves due to employer-related reasons—such as dismissal or recommended resignation—the employer remains ineligible for the subsidy.

The process for self-employed individuals to receive early re-employment allowances will also be simplified. This allowance compensates job seekers who actively start a business before their job-seeker benefits period ends by paying 50% of the remaining benefits. Previously, recipients who operated a business for over 12 months had to submit both a business plan and proof of taxation. Under the revised process, only proof of taxation will be required.

Additionally, alternative military service workers will no longer qualify for the early re-employment allowance. Previously, they could receive the allowance despite being obligated to serve under the Military Service Act. A Ministry of Employment and Labor official stated, “By reasonably adjusting the requirements for the childbirth and childcare employment stabilization incentive and early re-employment allowance, we expect to significantly improve convenience for both small business owners and recipients.”


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