The Chief of Labor and Social Welfare Office, D.Bayarsaikhan, answers our journalist’s questions on a draft law on employment support, submitted by the Government.

Why does the present law need changes?
The present law on employment support was passed in 2001 and needs updating in line with the considerable changes that have taken place in society and the economy. The amendments seek to extend avenues of employment support by identifying principles that can be applied to more projects and programs.

What are these?
We are seeking to encourage more local initiative for programs and projects appropriate to that area’s particular conditions and resources. The present law is not very flexible in such matters. Also the draft identifies certain sections of the population as having special difficulty to find jobs. They are citizens between 35 and 60, ex-convicts, and those without any special skills. The state will provide help to them to be valued in the job market.

What about small loans to support employment of poor citizens?
The draft extends the term of repayment and reduces interest rates. People who have nothing to offer as collateral for a loan will be helped. There will also be a state risk fund for such loans.

What is the limit of the loan?
We suggest raising it from the present MNT10 million to MNT20 million.

There has been criticism that the draft supports unemployed citizens more than those who work. Is this true?
Citizens who work and have a salary should not need any special Government support. Unemployed citizens are the obvious target of a law on employment support. It is not meant for all citizens.

What about raising the incentive for employers who give a job to those between 35 and 60?
Yes, some MPs want this to be increased to 12 times the minimum salary from the present 5 times. My personal opinion does not favor this.