The coronavirus epidemic (koronavirus, in Finnish) has hit hard the Finnish economy. According to the Government's latest forecast, in the best-case scenario Finland's GDP will shrink at least by 5.5% in 2020 and unemployment will grow up to 8%.
Employers are now in a situation where they have to adjust their operations as the demand is weakening due to the restrictions imposed to curb the epidemic.
Thousands of employees are now facing unemployment or temporary layoffs and the Government has approved several legal amendments in order to strengthen their livelihood.
The Unemployment Security Act, the Act on Financing of Unemployment Benefits and the Act on Unemployment Funds have been amended temporarily to apply the following changes:
- The five-day waiting period before a person is eligible for unemployment security will be abolished. This concerns earnings-related unemployment allowance, basic unemployment allowance and labour market support. The allowances payable for these days will be funded by the State.
- The required period of employment for wage-earners will be shortened. Fulfilling the required period of employment is a prerequisite for receiving unemployment allowance. The required period of employment will be 13 calendar weeks instead of the present 26 calendar weeks. For non-owner family members of entrepreneurs the required period of employment will be 26 calendar weeks instead of the present 52 calendar weeks.
- Unemployment allowances paid on the grounds of layoffs will not be taken into account in calculating the maximum period of payment that applies to the unemployment allowance. This amendment will improve unemployment security should the unemployment be prolonged.
The Acts entered into force on 15 April 2020 and will remain in force until 6 July 2020.
The amendments will be applied retroactively, starting on 16 March 2020.
Further information on how these amendments affect unemployment benefits can be obtained from the Social Insurance Institution (Kela) or from unemployment funds, says the Finnish Ministry of Social Affairs and Health.
See also the conditions for entrepreneurs HERE
