Unemployment Insurance (UI)
Definition - What does Unemployment Insurance (UI) mean?
Unemployment insurance is insurance protection that yields a benefit in the event that a person loses his or her job under certain circumstances.
In the context of the law, the government offers unemployment insurance to citizens, so people who lose their job under certain circumstances can legally have a right to unemployment compensation.
Justipedia explains Unemployment Insurance (UI)
Unemployment insurance will typically pay out a certain amount of money to the individual per month. Often, there are criteria that must be met for the person to continue receiving these payments. For example, it is common for a person to be required to be actively seeking employment in order to receive unemployment benefits.
Government unemployment insurance programs are sponsored by taxpayers, so the government needs to collect money through taxes in order to fund these programs.