Under what condition can an employee qualify for unemployment insurance?

An employee can qualify for unemployment insurance when they are laid off due to a factory closure because this situation is typically considered involuntary unemployment. Involuntary unemployment occurs when an employee loses their job through no fault of their own, which is the case when a company shuts down regardless of the employee's performance or desire to continue working.

Unemployment insurance is designed to provide temporary financial support to those who are actively seeking work after losing their job under specific circumstances. Layoffs resulting from economic reasons, such as a factory closure, are generally covered under unemployment insurance programs, as they reflect a need for financial assistance due to unforeseen circumstances affecting the organization.

In contrast, voluntary resignation, retirement, and the end of a temporary contract may not qualify for unemployment benefits, as these situations typically involve a decision made by the employee to leave their position, hence not fitting the criteria for involuntary unemployment.