How does being laid off affect earnings-related daily allowance?

If you have been laid off, you can still apply for earnings-related daily allowance. In the Unemployment Security Act, a person who has been laid off is considered unemployed, meaning that almost all regulations on unemployment can also be directly applied to laid off employees. However, there are a few exceptions.

Different types of lay-offs

You can be laid off on a full-time basis or by having your weekly or daily working hours reduced. In practice, these different forms of lay-offs can be combined.

If you are laid off on a full-time basis, we can pay your daily allowance in full for the duration of the lay-off.

If you are laid off by having your weekly working hours reduced, it means that during the calendar week, you have days when you work full hours and one or more days when you are laid off. In these cases, we will pay the full amount of daily allowance for the days of lay-off, but no daily allowance will be paid for working days.

A lay-off can also mean that you work shorter days. You may still be working, even on all business days, but you have at least one day per week when your working time is shorter. In these cases, we can pay you an adjusted daily allowance. This means that your income is taken into account when determining the amount of your daily allowance. We can still pay you a daily allowance, but since you still earn a salary, it will be less than if you were completely laid off. You can estimate the amount of your adjusted daily allowance using our daily allowance calculator.

We will also pay you an adjusted daily allowance if you have both days when you are laid off on a full-time basis and days when your working day is shorter. In this case, your income for both shortened and full working days are taken into account.

Effect of lay-offs on the working time limit of adjusted daily allowance

Adjusted daily allowance can only be paid if your working time does not exceed 80% of the working time of a full-time employee. Usually the review period for this working time limit is the entire adjustment period. Situations in which the lay-off is carried out by reducing the number of weekly or daily working hours are an exception to this. In these cases, the working hours are reviewed by calendar weeks.

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