EMCC European Monitoring Centre on Change

Finland: Redundant employees entitlement to public support

Finland
Phase: Management
Type:
Redundant employees entitlement to public support
Last modified: 05 August, 2021
Native name:

Työttömyysturvalaki (1290/2002), Laki julkisesta työvoima- ja yrityspalvelusta (916/2012)

English name:

Unemployment Security Act (1290/2002), Act on Public Employment and Business Service (916/2012)

Article

whole regulations

Description

The Unemployment Security Act outlines the conditions under which the unemployed person will receive unemployment benefit. Unemployment benefit, provided by the national Social Insurance Institution (Kela), is normally available for unemployed people aged 17-64 years old. The local government of the place of residence of the unemployed is liable to pay a part of the costs. The type and amount of the benefit will depend on the duration of unemployment and whether the person has been employed before. Other income, such as other benefits, temporary wages or entrepreneurial revenues, may also affect the amount of unemployment benefit to be paid. In addition, following a reform introduced in 2018, the unemployment benefit is more directly related to the efforts of the unemployed to find work.

The Act on Public Employment and Business Service defines the responsibilities and scope of public employment services (PES, TE Offices). PES must inform the unemployed about the available services and terms and conditions of job seeking, and keep regular contact with the unemployed. A first interview is normally arranged within two weeks after the unemployed registers as a job seeker. In cooperation with the PES, the unemployed will draw up a personalised employment plan based on his or her objectives and estimated needs. The unemployed is obliged to follow the employment plan, to actively look for work and training, and to participate in employment measures. If the unemployed fails to draft an employment plan, or to follow it, s/he may be denied the right to unemployment benefit for a predefined period of time. The employment plan must be updated jointly by the unemployed and PES at least every three months.

An unemployed who without an acceptable reason has resigned, caused her/his own dismissal or refused a job offer may be denied the right to unemployment benefit for a predefined period.

PES and/or the regional Centres for Economic Development, Transport and the Environment (ELY Centres) advice and distribute information on

  • vacant positions and job seeking;
  • labour force availability and acquisition;
  • training and skills development opportunities;
  • the labour market, occupational sectors and occupations;
  • business start-up and development activities;
  • services, subsidies and compensations.

PES, ELY Centres and Kela together also offer financial and non-financial support for different employment measures. These include (but may not be limited to):

  • long-distance commuting;
  • counselling and financial support for starting a business;
  • job trials;
  • education and training;
  • subsidised employment.

Comments

Unemployment funds, often tied to trade unions, provide additional financial support for their members.

The main content of the unemployment benefit reform introduced in 2018 is that if, within three months, the unemployed person has not fulfilled any of the activation criteria, for the next review period he/she will get a lower amount of unemployment benefit. The reform has been the target of widespread criticism and the activation criteria have subsequently been reviewed. 

A comprehensive social security reform, including unemployment security, is being planned as of June 2019. Changes to what is reported above may be forthcoming.

Cost covered by
  • National government
Involved actors other than national government
  • Public employment service
  • Regional/local government
  • Other
Involvement others
The Social Insurance Institution (Kela)
Thresholds
No, applicable in all circumstances
Useful? Interesting? Tell us what you think. Hide comments

Eurofound welcomes feedback and updates on this regulation

Add new comment