Membership condition and employment condition
To be able to get earnings related daily allowance you have to meet 26 weeks employment condition. The number of weeks that fills the employment condition has been changed by an amendment that took power on 1.1.2014. Previously the requirements for meeting the employment condition were 34 calendar weeks of employment and 34 calendar weeks of membership. If your employment condition includes at least one week after 29.12.2013, the new, shorter employment condition (26 calendar weeks) applies to you. However, if your employment condition has been met in its entirety before the aforementioned date, the employment condition is fulfilled according to the 34 calendar week’s employment required by the previous legislation.
If you have transferred to YTK from another employee’s fund, your employment and insurance time in the previous fund can be taken into account, if the joining has happened during a month from resigning from the previous fund.
Observation period of employment condition
The observation period of the employment condition is the 28 month period predating the unemployment, for which time the calendar weeks are taken into account in the employment condition. The observation period can be prolonged for a maximum of seven years, if the applicant has been hindered from the labour market due to sickness, institutionalization, rehabilitation, military service, civil service, full-time studies, employment promoting services, the birth of a child or taking care of a child under three years of age. However, if you have worked during a period that otherwise would prolong the period (for example care leave), the period at hand does not prolong the observation period.
The employee’s working condition is fulfilled as a rule in a work, where the working hours for each calendar week in one or more jobs have been at least 18 hours altogether. In periodical work the condition is fulfilled when the regular working hours under the employment contract have been at least 18 hours per calendar week during an evening period.
With a decree about the execution of unemployment security act, a regulation of fulfilling the employment condition on unusual working hours’ fields has been given. The decree regulates an exception only on the working hour condition. For example in teaching it has been regulated that every calendar week can been included in the employment condition, where
- the working hours have been at least half of the minimum weekly working hours of an full-time teacher in the field, if there are full-time teachers on the field;
- the working hours are at least 8 hours, if there are not full-time teachers in the fieldI
If necessary, you can check the details on the weekly working hours required for the employment condition from the fund’s customer service.
Work time bank
Working hours can be saved in a work time bank, if working hour arrangements have been agreed on in writing in the work place. Working hours saved in the work time bank are not taken into consideration when counting the working hour preconditions of employment condition. The paid leave withdrawn from the work time bank is normal work time included in the employment condition just like the annual holiday. In order for the paid leave that is based on the work time bank could be read in the employment condition, the salary must correspond with the salary of work included in the employment condition’s work hour precondition.
In addition to paid leave, monetary compensation can be withdrawn from the work time bank. The compensation can be paid only in exceptional situations of which have been agreed upon in agreements that are work place specific. These situations usually have to do with resigning the work time bank or termination of employment. Compensations withdrawn as cash are not read into the employment condition as time. If money is withdrawn from the work time bank, it must be allocated for the period of lay off. Time corresponding the compensation or allocation time is not read into the employment condition. Instead, for example paid leave that is based on savings in the work time bank and is taken before the beginning of the lay of for a paid leave that is taken between two periods of lay off and the salary of which is not allocated, are time included in the employment condition.
Salary according to collective agreement or minimum salary
Only insured work can be included in the employment condition. Insured work means work, the salary of which has been deducted social security payments (like pension and unemployment insurance) and income taxes.
The employment condition also requires that at least a salary according to the collective agreement has been paid for the work. If the field has no collective agreement, the full-time job salary must in 2017 be 1.187,00 euros per month (in 2016 minimum wage 1.173,00 euros per month). In part-time work the earned salary is proportioned to hours worked.
Work that has been done while receiving partial sickness allowance is not read into the employment condition. Also time, during which a reduced sickness time’s salary has been paid according to the collective or office agreement, is not read into the employment condition.
Income supported work
After a change in unemployment security legislation that became valid on 1.1.2017, only 75 per cent of employment condition fulfilling calendar weeks of income supported employments are included in the employment condition. If the income supported employment has been arranged based on employment obligation (obligated employment), all calendar weeks that fulfill the employment condition are included in it.
For those parts of income supported work that are not included in the employment condition, the work is considered as time that prolongs the scrutinizing period of employment condition. So that the scrutinizing period can be prolonged, the income supported work must fulfill the other preconditions for being included in the employment condition. The changes are valid for income supported employments that start from 1.1.2017 onwards.
EXAMPLE: Matti has been employed in income supported work. The income supported work has started on 2.1.2017, so only 75 per cent of the work is included in the employment condition. Matti becomes a daily allowance applicant on 4.9.2017 after the work has lasted 35 weeks. 26 weeks of the income supported work is included in the employment condition (0,75 x 35 =26,25).
Validity of employment condition
As a member of an employee’s fund, the employment condition that has been accumulated during 26 weeks can be lost in the following situations, under the regulation of the fifth paragraph of the Unemployment Security Act:
- If the member has worked as an entrepreneur for over 18 months, the earnings-related daily allowance cannot be granted before the employment condition has been met again after the entrepreneurial activities.
- If the member has been off the labour market without valid reason for over six months, the allowance cannot be granted before the employment condition has been met again after returning to labour market.
- If the member transfers funds and the period between resigning the old fund and joining a new fund is over a month, the allowance cannot be paid before the employment condition has been met in the new fund.
The member has been on the labour market, if they have worked in a work included in the employment condition, if they have worked as an entrepreneur or been self-employed, if they have been in a labour political service (for example labour politic training, work try-out) or have been an unemployed job-seeker in the employment office.
Valid reasons for being off the labour market are sickness, institutionalization, rehabilitation, military service, civil service, full-time studying, birth of a child, taking care of a child under 3 years of age or other comparable reason.
Losing the employment condition means, that the whole 26 week employment condition must be gathered again before entitlement to earnings-related daily allowance.