Section 42AE — Social Security (Administration) Act 1999: Unemployment failures

(1) A person commits an unemployment failure if: (a) the person is receiving a participation payment; and (aa) in the case where the participation payment is parenting payment—the person is not someone to whom paragraph 500(1)(ca) of the 1991 Act applies; and (b) the person becomes unemployed: (i) as a direct or indirect result of a voluntary act of the person; or (ii) as a result of the person’s misconduct as an employee. Note: In certain circumstances a person is taken to be receiving a participation payment even if it is not payable to the person: see section 42AQ. (2) A person also commits an unemployment failure if: (a) the person is not receiving, but has made a claim for, a participation payment; and (aa) in the case where the participation payment is parenting payment—the person is not someone to whom paragraph 500(1)(ca) of the 1991 Act applies; and (b) the person becomes unemployed (whether before or after making the claim): (i) as a direct or indirect result of a voluntary act of the person; or (ii) as a result of the person’s misconduct as an employee. (3) However, a person does not commit an unemployment failure because of subparagraph (1)(b)(i) or (2)(b)(i) if the person satisfies the Secretary that the voluntary act was reasonable. (4) A person also does not commit an unemployment failure if: (a) the person is the principal carer of at least one child or has a partial capacity to work; and (b) the work in relation to which the person became unemployed was work of more than 15 hours per week. Note 1: For principal carer see subsections 5(15) to (24) of the 1991 Act. Note 2: For partial capacity to work see section 16B of the 1991 Act.