How does industrial dispute affect the earnings-related daily allowance?

We cannot pay you daily allowance for the duration of industrial dispute. There are a few exceptions.

Industrial dispute

Industrial dispute refers to measures that aim at affecting the employment and salary relations at the workplace. A labour dispute may lead to industrial action, the objective of which is to influence the other party. When the employees interrupt working due to the dispute, it is a strike. When the employer interrupts working due to the dispute, it is a lockout.

There are different types of industrial action. An overtime ban is one example of industrial action.

The effect of industrial dispute on daily allowance

We cannot pay you daily allowance, if

  • you have become unemployed directly due to a strike or lockout
  • you have become unemployed indirectly due to a strike or lockout, but the purpose of the industrial dispute in question is to implement changes also to your employment and salary.

When the general requirements are met, we can pay you daily allowance, for example, if

  • you were already completely unemployed before the labour dispute
  • you were laid off before the labour dispute (provided that your lay-off notice was issued before the notice of lockout)
  • your work is prevented by a strike or lockout that has no direct or indirect impact on your terms of employment or working conditions
  • In these situations, there is no waiting period set in the Unemployment Security Act

Strike benefit

Strike benefit is compensation paid by a trade union, which may be tax-free or subject to tax. It is paid for application to those members of a trade union whose salary payment has been interrupted due to strike.

Strike benefit is not a benefit paid by unemployment funds. YTK is an unemployment fund, so you cannot apply for strike benefit from YTK.

Employer's obligation to pay wages

According to the Employment Contracts Act, the employer must pay full wages for a maximum of seven days if the reason for not working is the industrial action taken by other employees and the action has no impact on your terms and conditions of work. If you are a member of the YTK Association, you can ask the association for more information about the impact of industrial action on the employer's obligation to pay wages.

We cannot pay you earnings-related daily allowance for the period for which you are legally entitled to wages.

How labour disputes affect your unemployment fund membership

Everyone can decide for themselves whether they want to participate in industrial action. Participating in industrial action is not mandatory. If you are a member of a union and choose not to participate in the industrial action, the union can – depending on its rules – decide to end your union membership. Your unemployment fund membership cannot be ended on this basis.

Was this useful?

Thank you!

Thank you!