Rapid changes to unemployment security are carried out
The Finnish government has accepted the proposals drawn up by the labour market organisations on changes to unemployment security due to the coronavirus epidemic. The most relevant changes concern employment condition, maximum length of earnings-related allowance and self-liability period.
The changes to legislation have not yet been implemented.
Current employment condition of 26 weeks would be shortened to 13 weeks, if the employment has begun on 1 of January 2020 or after that.
Five days self-liability period would be removed. So far, it has been possible to pay the earnings-related allowance for the first time only after the self-liability period of five days.
Days accruing the maximum amount of earnings-related allowance days would not be taken into account during temporary lay-offs. At the moment, the maximum length of earnings-related allowance is 300-500 days depending on the working history and age of the applicant.
Additionally, those who have been temporarily laid off would not need to register themselves to the TE Office as unemployed job seekers, if the employer is temporarily laying off for at least 10 employees.
The changes would be in effect only temporarily, but no specific duration has yet been given. They would be implemented retroactively as of 16 of March 2020.
The government has also informed that it will fund the unemployment funds with an additional EUR 20 million in order to ensure efficient processing of benefits.
We will update the newsletter as further information is received about the details of the proposal.