There are some difficult-to-anticipate details in employment security which determine whether we can pay you daily allowance or not. A customer of ours asked us to make a list of them. We are collecting examples here. We update the list regularly, so you can send feedback and tell us if you have encountered similar surprises.
Details that affect your right to receive benefits
Having registered as an unemployed job-seeker in the TE Office is a necessary condition for the payment of unemployment security. You can do that by yourself in the online service of the TE Office. Follow the instructions carefully and ensure that the job-seeking is valid. Registering as a job-seeker may remain incomplete if you are not careful.
You also need to register as an unemployed job-seeker, if you are laid off.
You may receive a job offer from the TE Office. If you do not apply for the offered job, the TE Office may set a non-benefit time period during which we cannot pay you daily allowance. So you should apply for the offered job, even if you think that it is not suited to you. It is considered that it is up to the employer to evaluate the suitability. Your own view on the non-suitability of the job is not an acceptable reason not to apply for the offered job.
We can only pay daily allowance retroactively for three months from the filing of the application. This time limit also concerns further applications.
Remember that you can file your first application when the unemployment has lasted for two weeks. You should not delay the submitting of the application.
We can pay you daily allowance once you have been an unemployed job-seeker in the TE Office for a period that equals five full working days. That is referred to as the waiting period. As a general rule, the waiting period occurs no more than once a year.
The waiting period shall, however, accumulate in full over eight consecutive calendar weeks. If you have, for example, been laid off occasionally on few days, the waiting period is not necessarily accumulated during eight consecutive calendar weeks. Then the waiting period will start over. That may happen at eight-week intervals, and the earnings-related daily allowance can never be paid.
Those in part-time work may be entitled to adjusted daily allowance. Part-time work is work in which the working time is at most 80 per cent of that of full-time work. If the employer does not control the working hours, the fulfilling of the condition regarding working time cannot be verified, and earnings-related daily allowance cannot be paid.
Fortunately the interpretation has been loosened recently. It is clear that sometime the nature or circumstances of work can be such that staying below the working time limit can be verified by means other than precise controlling of working hours. Those cases are, however, considered case by case, and thus the processing of the application may take a little longer.
When you work part-time as an employee or entrepreneur, you can nevertheless apply for daily allowance. Salary and entrepreneurial income decrease the daily allowance, but in most cases some of it can be paid.
So remember to keep your job-seeking valid in the TE Office and continue to apply for daily allowance as per normal.
If you are unemployed and receive home care allowance, it shall always be deducted from the unemployment benefit paid to you. If your spouse receives home care allowance, and the spouse does not care for the child by himself/herself, the home care allowance paid to your spouse shall be deducted from your unemployment benefit. So if the child is regularly in care outside home even part-time, the home care allowance paid to the spouse shall be deducted from the applicant’s unemployment daily allowance.
Persons who are married to each other or in co-habitation shall be considered spouses. Home care allowance paid to a same-sex co-habitation partner can also be deducted from the applicant’s daily allowance.
If you are absent from the labour market for more than six months without an acceptable reason, you will lose the condition regarding employment you have accumulated, and we cannot pay you earnings-related daily allowance.
In a typical case the employee receives severance pay and fails to register as a job-seeker. When the severance pay ends, they apply for earnings-related daily allowance, but will not get it, because they have not been on the labour market.
You are considered to be on the labour market, if you are e.g. in employment included in the condition regarding employment, are employed in entrepreneurial activities, or participate in service that promotes employment, or are an unemployed job-seeker in the TE Office. You shall be considered to have had an acceptable reason for absence from the labour market due to illness, institutional care, rehabilitation, military service, civil service, full-time studying, scholarship period, birth of a child, care of a child at most three years old, or a comparable reason.
You can work for a short time in a job with a lower salary without your earnings-related daily allowance decreasing. That also works the other way around, however. If you work for a short time in a job with a higher salary, your daily allowance will not necessarily increase.
You are not entitled to receive unemployment benefit from the period for which you are entitled to pay of the period of notice or a comparable compensation,
The employer of laid off employee may deduct 14 days from the period of notice, if the employee has been laid off using a lay-off notice period of over 14 days in accordance with the law or agreement. So if the lay-off notice period is exactly 14 days, it cannot be deducted from the period of notice at all, and daily allowance cannot be paid for that period.
Sickness allowance prevents the payment of unemployment benefit. If you have received unemployment benefit before the beginning of sickness allowance, you can apply for daily allowance for the waiting period of sickness allowance.
Condition regarding employment is a necessary requirement for the payment of unemployment benefit. As a general rule, the condition regarding employment accumulates when you are at work. If you receive part-time sickness allowance while working, the work for that period cannot be included in the condition regarding employment.
Condition regarding employment is a necessary requirement for the payment of unemployment benefit. As a general rule, the condition regarding employment accumulates when you are at work. If you receive lowered pay during illness based on collective agreement of the private or public sector, the work for that period cannot be included in the condition regarding employment.
When you change the unemployment fund, remember to join the new unemployment fund within one month from resigning from the previous fund. If you exceed the time limit, you will lose the condition regarding employment you have accumulated earlier.
If you work in your family member’s company and live in the same household with him/her, you shall be considered an entrepreneur for the purposes of the Unemployment Security Act. It means that as a member of the employee fund you do not accumulate the condition regarding employment. Hence we cannot pay you earnings-related daily allowance in case you become unemployed.
When you are an entrepreneur, the TE Office shall evaluate to what extent the working affects your chance to apply for a full-time job. The TE Office may deem that you are a full-time entrepreneur, in which case we cannot pay you daily allowance even if you had fulfilled the employee’s condition regarding employment in another job.
The amendment of the law that entered into force on 1 July 2019 improved the position of the family members of an entrepreneur in terms of unemployment security. After the amendment, a family member working in the company who is a non-owner shall be considered to be an employee. However, the entrepreneur status shall remain with those family members of an entrepreneur who have a holding in the company and those who are considered to be entrepreneurs according to the Self-employed Persons Pension Acts.