As of 1 April 2020, employees laid off will be entitled to unemployment benefit even if they are engaged in business activities or studies. This amendment to the Unemployment Security Act will remain in force until 31 July 2020.
With this change, the Finnish Government intends to secure the livelihoods of employees during layoff and simplify unemployment security related procedures in TE Offices during the coronavirus epidemic.
Finnish Parliament approved the Government proposal regarding the temporary amendment of chapter 11 of the Unemployment Security Act on 30 March 2020. The President approved the Act on 31 March 2020.
The Act will apply to those laid off starting from 16 March 2020 or later.
Right to unemployment benefit
The most significant change is that employees who register as jobseekers have the right to unemployment benefit during layoff even if they were engaged in business activities or studies.
The Ministry of Economic Affairs and Employment explained that the amendment "provides easier and quicker access to unemployment benefit to those who study or engage in business activities while laid off." If the person who has been laid off has income from business activities, the Social Security Institution (Kela) and the unemployment fund take this income into account in the adjusted unemployment benefit.
The payment of unemployment benefit to a person who has been laid off will still require that the person registers as a jobseeker at the TE Office. The obligation to accept work offered by the employer will continue during layoff.
TE Offices’ workload caused backlogs
The sharp and sudden increase in layoffs will increase the workload of both TE Offices and the payers of unemployment benefits.
The Ministry of Economic Affairs and Employment admits that TE Offices "are experiencing backlogs as a large number of people laid off are registering as jobseekers and applying for unemployment benefit."
The legislative amendment aims to reduce the workload caused by layoffs in TE Offices and thereby to accelerate the implementation of the unemployment security system during the Covid-19 epidemic.
