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In its previous comments, the Committee has referred to sections 43 and 44 of Decree No. 150 of 1981, which provide for the loss of entitlement to unemployment benefit if the unemployed person refuses to perform types of work assigned by the municipal authorities, even where the unemployed person has paid contributions for the 52 weeks which give entitlement to the benefit.

In its reports, the Government has continued to indicate that these provisions have never been applied. In its latest report, it refers to the information provided by the Sub-Secretariat for Regional and Administrative Development of the Ministry of the Interior according to which "the requirement to perform assistance work assigned by the respective municipal authority, in practice and according to information gathered by the Sub-Secretariat, has not been given effect by municipal authorities".

The Committee notes the information contained in the Government’s report that the Superintendent of Social Security has issued a favourable opinion for the amendment of Decree No. 150 of 1981 in the following terms: "in accordance with the objectives and principles of the social security system, unemployment benefit must not be conditional on the beneficiary placing her or his labour capacity at the disposal of the mayor, with the sole requirements set forth concerning the cause of unemployment and the period of insurance coverage and contributions".

The Committee hopes that the Government will take the necessary measures to amend Decree No. 150 so as to ensure that the positive law corresponds to the practice which, according to the Government, already exists.

The Committee notes the adoption of Act No. 19.728 establishing an unemployment insurance scheme which will operate in parallel with the current single system of unemployment benefits governed by Legislative Decree No. 150 of 1981, which will continue to operate for workers engaged prior to 1 October 2002 who do not opt for coverage by the new insurance scheme.