The eligibility for unemployment allowance under Rajiv Gandhi Shramik Kalyan Yojana is decided according to the date on which the establishment is closed down under law, and not the factual date of closure. It was held so in the case of Thiruvepathi Mills Labour Union (Intuc) and Others v. Employees State Insurance Corporation, by the Kerala High Court.
In order to receive the benefit of the Scheme, the applicant should have been an insured person under the Employees State Insurance Act, 1948 on the date of loss of employment. Contribution in respect of him should have been paid or should have been payable for a minimum period of five years prior to the loss of employment. However, default in remittance of payable contribution by the Employer would not affect the eligibility of employee to receive the unemployment allowance.