Employment statusA term used by lenders to describe potential borrowers' working arrangements. Self-employed applicants are sometimes seen as a greater risk than employees. Many specialist lenders and mortgages have emerged in recent years designed specially for different types of employment status.
Unemployment benefitUnemployment benefit
Benefit received from a government department when a previously employed person becomes unemployed. The claimant must be able to verify previous employment and that he/she is actively seeking new employment. Unemployment benefit payments are liable to income tax.
Employment rateEmployment rate
The percentage of the labor force that is employed. The employment rate is one of the economic indicators that economists examine to help understand the state of the economy. See also: Unemployment rate.
Unemployment insuranceUnemployment insurance
Another form of income protection, but one that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).
Accident, Sickness and Unemployment insuranceAccident, Sickness and Unemployment insurance
Income protection incorporating cover for loss of earnings arising from accident, sickness or unemployment. Usually paid out in the form of a monthly tax-free income to cover a portion of lost earnings and restricted to two years from the date of the first payment.
Verification of employmentVerification of employment
As part of the loan process, a lender will ask the borrower's employer for confirmation of the borrower's position and salary.
Further SuggestionsSelf employment tax
Employment argument for protection
expenses in employment
Full Employment and Balance Growth Act of 1978(Humphrey Hawkins Act)