Työttömyysturvaa ilman muuta
Työttömyysturvaa ilman muuta
Työttömyysturvaa ilman muuta
Benefits ABC

Restrictions for receiving earnings-related daily allowance

Some restrictions and hindrances have been stated in the Unemployment Security Act for paying earnings-related daily allowance. Some of these hindrances are labour political and are based on the employment offices’ labour political statements. The labour politic statements bind the fund and the earnings-related daily allowance can only be paid if the employment office states that there is no hindrance for paying the benefit.

Limitations for receiving earnings-related daily allowance, like disability to work, financial benefit, a statutory social benefit or hindrance for being on the labour market, influence the entitlement to daily allowance and are studied in the fund during the handling of the daily allowance application. To have their application handled as quickly as possible, it is important for the applicant to deliver the fund all necessary information as an attachment of their application.

Earnings-related daily allowance is not paid in the following cases:

  • You are under 17 years old or over 65 years old. The allowance can however be paid until you turn 68 if you have been completely laid off or you have become unemployed due to a reason similar to lay off. (This does not apply if you have received daily allowance based on additional days.)
  • You are a full-time student.
  • You are on a maternity or parental leave.
  • You have declined work or training or have resigned without a valid reason.
  • You work in your own, your spouse’s or your family member’s company.
  • You get or are entitled to a resignation period’s salary or other such benefit from your employer.
  • During two months before a complete lay off or during the lay-off you receive a financial supplement from a work time bank.
  • You receive annual holiday salary.
  • You receive a financial benefit from your employer due to the termination of the employment.
  • You are disabled to work.
  • You are a party of a work dispute (strike/lockout), to whose working conditions the dispute is supposed to effect.
  • For a leave, which is based on an Act or a collective agreement or an office agreement, other than a lay-off or a shortening of working hours for a part-time employee.
  • For a waiting period that is set when the maximum payment period of earnings-related daily allowance begins.
  • military or civil service
  • imprisonment
  • hospital care or treatment for other disability

Monetary compensation of the work time bank

A monetary compensation paid from the work time bank during two months before a full-time lay-off or during it hinders the payment of unemployment benefit for the time to which the compensation is allocated. The compensation is allocated to the days of lay-off according to the notice of lay-off. If the compensation has been paid during the lay-off, the allocation can be done from the time of the payment of the compensation.

The allocation is done by dividing the compensation by the daily salary of the latest employment. The calculation and the allocation of the salary of allocation is done in the same way as allocation of holiday compensation at the end of an employment.

Work dispute

A member cannot be paid earnings-related daily allowance during a work dispute, if they have become unemployed due to a strike or a lock-out. Same goes for the effects of a work dispute, if it can be seen to be meant to change the member’s own work and salary relations. Work dispute means an employee’s strike or an employer’s lock-out.  

If the member’s work conditions are dependent of the strike or lock-out and before the beginning of the strike they have been completely unemployed and have received daily allowance, they will continue to be paid the allowance during the strike. The same goes for a completely laid off person, requiring that the notice of lay-off has been given before a strike warning or notice of lock-out.

If the person’s work is prevented by a strike or a lock-out with no dependency on the person’s working conditions, they are entitled to adjusted or full unemployment allowance, given that other preconditions are met. In this situation no waiting period is set.

Waiting period

Before starting the payments of earnings-related daily allowance, you are set a waiting period that is equal to seven (7) full working days. The waiting period is prolonged from five to seven with a change in the unemployment security legislation, valid from 1.1.2017 onwards. If your waiting period is set before 1.1.2017, the waiting period is still the time that corresponds five (5) full working days.

The waiting period is as a rule set once towards every maximum time of earnings-related daily allowance. The waiting period is not set, however, if you had a waiting period set at the beginning of your previous maximum period, and your new maximum period begins within a year of this. In this case a new salary definition is also not performed.

The waiting period does not have to be consecutive days, but they must be collected during eight (8) consecutive calendar weeks. Calculating the waiting period can start at earliest when you have registered as an unemployed job-seeker at the employment office. Waiting period days are not counted during the days when you are not entitled to daily allowance, for example during an employment political probation period or during the allocation of financial compensation.

Please notice that the waiting period is also set, if you fulfill the employment condition again before reaching the maximum period of the previous earnings-related daily allowance. Only in the situation mentioned before, where the maximum period has begun and the waiting period has been set during the past year, is the new waiting period not set. Setting the new waiting period does not require that daily allowance had been paid before that.

If you are working a shortened work week or doing part-time work, the waiting period is seen fulfilled when there has been a period that corresponds to seven days of unemployment during eight consecutive calendar weeks.

Also days, during which you have been paid unemployment benefit for employment promoting services, are calculated to the waiting period. In these situations, the benefit is paid without hindrance from the waiting period. The waiting period is not set after the end of the services for those parts that have been gathered during the services.

A waiting period is not set for you when your employment is hindered due to a work dispute procedure that has no correlation to your employment or work conditions. However, in this case you must also register as an unemployed job-seeker at the employment office. The payments of daily allowance can begin, when the right for salary from the employer, for the time of being unable to work, stops. The waiting period is set if you become unemployed after the work dispute procedure ends.

Disability to work

A disabled is not entitled to unemployment daily allowance. According to Unemployment Security Act, a disabled is a person who receives sickness daily allowance or partial sickness allowance, disability pension, rehabilitation support, or other benefit granted due to the person’s disability. During the period of disability you should apply for benefits paid due to disability first. The applicant of earnings-related daily allowance must report their disability in the application, even if a benefit has not been granted for it yet.

According to the Sickness Insurance Act, during its waiting period a person entitled to earning-related daily allowance can be entitled to it despite disability and even if the sickness hinders the person from being on the labour market or registering as an unemployed job-seeker. In these situations granting the allowance requires that the person has received unemployment benefit immediately before the waiting period under the Sickness Insurance Act. The waiting period of sickness insurance daily allowance is usually the day of becoming sick and the following nine work days.

In addition, there might be an entitlement to earnings-related daily allowance despite disability in situations, where the 300 day maximum of sickness daily allowance has been used. The entitlement to earnings-related daily allowance requires that the employment application is registered at the employment office, the disability continues and the disability pension application has been sent or rejected. If the applicant’s employment relationship continues, a certificate from the employer must be presented, stating that there is no suitable job for the disabled person.  

Hindrances for being on the labour market

You are not entitled for daily allowance if you are not available for the labour market. Hindrances include military service, civil service, imprisonment, hospital care or other institutionalization.

Your right to the allowance is based upon the information you give us in the application. Please inform us about all changes that affect your situation.

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