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Unemployment benefit advice 

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Legislation - 09.04.2020 klo 11.00

Changes in unemployment security due to coronavirus - the changes will be applied retroactively

Changes in the Finnish unemployment security legislation will be in effect until 6 July 2020 and they will be applied retroactively from 16 March. The unemployment fund will automatically apply the changes.

The Finnish unemployment security legislation will be temporarily amended due to the coronavirus pandemic. The changes will be in effect until 6 July 2020 and they will be applied retroactively from 16 March. The temporary amendments to unemployment security aim to improve the financial situation of temporarily laid off employees.

The unemployment fund will automatically apply the changes to all unemployment allowance applications arriving on or after 16 March. If the allowance has already been paid for an application submitted on or after 16 March, the unemployment fund will correct the applications retroactively.

Earnings-related allowance paid during the waiting period

As a temporary measure, earnings-related unemployment allowance will also be paid during the five-day waiting period. The payment of the allowance will begin on the first day of unemployment. This provision applies to people whose waiting period begins between 16 March and 6 July 2020. 

Work requirement halved

The work requirement for employees will be shortened to 13 weeks, if at least one week of work falls after 1 March 2020 and the work requirement of 26 weeks is not fulfilled. An additional requirement is that the first payment date of the allowance can be no later than 5 July 2020. The maximum payment period for the earnings-related allowance cannot be ongoing.

Halving the work requirement also pertains to family members of entrepreneurs, temporarily bringing their requirement down to 26 weeks from 52 weeks. The required period of membership in an unemployment fund is similarly halved.
 

Layoff period not counted towards the maximum payment period

Unemployment allowance paid due to temporary layoffs will not be counted towards the maximum payment period of the earnings-related allowance (300–500 days). This regulation applies equally to employees who have been temporarily laid off fully and those whose work weeks or days have been shortened as a layoff measure. The change applies to temporary layoffs beginning on or after 16 March 2020. Unemployment allowance paid between 16 March and 30 June 2020 will not be counted towards the maximum payment period of earnings-related unemployment allowance.

Self-employed workers more easily covered by unemployment security

Access to unemployment cover for freelancers and sole proprietors has been facilitated.  A temporary amendment in the conditions of entrepreneurship due to the coronavirus situation is a basis for assessing entrepreneurship from the point of view of employment as a part-time business, and on the basis of a part-time business, a person is entitled to unemployment benefits.

In order to receive the unemployment benefit of an entrepreneur thus employed on a full-time basis, it is not now necessary to close down the business as under normal circumstances. The law is valid until June 30, 2020.

For further information about the coronavirus and its effect on employment, please see here. 

 

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