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Last updated: 22.06.2023

Transition security makes it easier to find new employment

Transition security is an operating model to improve the position of redundant workers and support their re-employment.

Transition security concerns people who have been made redundant for financial reasons, reasons related to production or reasons related to the reorganisation of the employer’s operations. The parties to transition security are the employer, the employee and the employment authorities. 

The employee has many rights and the employer has many responsibilities under transition security. These rights and responsibilities concern leave during the notice period, training paid for by the employer and increased unemployment security, for example. More information about these employee’s rights is provided below. 

A worker who has been made redundant is entitled to 5–20 days of paid employment leave during the notice period. The duration of the leave depends on the duration of the notice period.   

Employment leave is granted for preparing an employment plan in line with the requirements of the employment authorities (TE Services), for finding a job at the employee’s own initiative or in line with the requirements of the employment authorities, or for participating in activities that promote employment. Full wages will be paid during the employment leave in accordance with the working hours system. 

Employment leave can also be part time. The employer must be notified of employment leave as early as possible, and a report must be presented if requested. As a rule, leave must be granted for the time indicated by the worker, unless this causes significant inconvenience to the employer.

The employer must provide an employee who has been made redundant with an opportunity to participate in employment coaching or training paid for by the employer if the company regularly has at least 30 employees and the employee has worked continuously for at least five years for the employer before the termination of her or his employment relationship. 

The company’s personnel and training plan must include principles that require the employer to provide employees with coaching or training that promotes employment if necessary. However, the employer must plan coaching or training in accordance with the employees’ needs. Coaching and training can be provided as a personal service or as a group-specific service. 

The value of the coaching or training must be equal to at least the redundant worker’s calculated wages for a month or the average monthly income of a person working in the same location as the redundant worker, depending on which is higher.  

The value of coaching and training can also be negotiated locally. The coaching or training must be provided within two months after the end of the notice period, or later if there is a substantial reason. 

If the employer neglects the provision of coaching or training, the employer must pay the worker an amount equal to the value of the training or coaching, in full or in part, depending on the proportional level of neglect. 

The employer must provide a redundant worker with occupational healthcare services for six months after the end of the employee’s obligation to work in line with the occupational healthcare contract if the employer regularly has at least 30 employees and the employee has worked continuously for the same employer for at least five years. 

The right to occupational healthcare expires if the worker enters into a permanent employment relationship or a fixed-term employment relationship of at least six months with another employer.

A redundant worker is entitled to increased unemployment security (increased earnings-related unemployment allowance) during the implementation of measures related to an employment plan or a similar plan. The maximum period of increased unemployment security is 200 days.

New transition security is aimed at redundant workers aged 55 or over who have worked for the same employer for at least five years. The purpose is to improve the employment and coping at work of people aged 55 or over. 

People aged 55 or over are offered a transition security allowance and training as follows: 

  • Right to transition security training equivalent to their wages for two months, provided by TE Services 
  • Right to a transition security allowance corresponding to their salary for a month 
  • Right to longer employment leave during the notice period (5, 15 or 25 days of employment leave) 
  • Right to reduced working time if they have worked for the same employer for at least three years.  

TE Services provides transition security training worth up to the redundant worker’s wages for two months. The training may start during the days of employment leave during the notice period or no later than within three months of the termination of the employment relationship. The purpose of the training is to develop the redundant worker’s professional capabilities or their capabilities to become a business owner or a sole proprietor. In other words, the training is intended to update competence, rather than replacing education leading to a qualification.  The training is negotiated as part of the employment plan.  

The transition security allowance is available through an unemployment fund or the Social Insurance Institution of Finland (Kela). It does not affect the daily unemployment allowance in any way, meaning that it does not reduce the daily unemployment allowance or postpone its start date. The only condition is that the application for transition security must be made within three months of the termination of the employment relationship. 

Employment leave has been extended for people aged 55 or over to a maximum of 25 days, while the maximum duration for younger people is 20 days. Employment leave is determined in the same manner as for younger workers – that is, based on the notice period. The purpose of providing older people with more days of unemployment leave is to ensure that they are able to start transition security training or complete a competence and working capacity assessment. 

The purpose of the right to reduced working time is to improve the conditions for coping at work for older people. This right is not a subjective right, meaning that the employer eventually decides whether the employment relationship can be converted into part-time employment. Reduced working time can also be applied to workers who are about to take a part-time sick leave or enter early old-age pension or partial disability pension.  

To be covered by the new transition security, an unemployed job seeker must register as an unemployed jobseeker with TE Services within 60 days of the termination of employment.  

Read more about change security in PAM’s guide for active members