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Specific adjustment period is not applied

The Government has enacted temporary changes to the Unemployment Security Act. According to the law, the specific adjustment period is not applied during the limited time.
 
The specific adjustment period is about making the normal adjustment period shorter in certain situations. When the adjustment period is shortened, a calculated conversion is also made to your income. This is one of the most complicated aspects of the Unemployment Security Act. However, removing it creates new situations that will be difficult to understand for the applicant.

Specific adjustment period

When you receive income from part-time work, full-time work lasting less than two weeks or from working part-time as an entrepreneur, we can pay you adjusted earnings-related daily allowance.

Normally, the adjustment process will take into account the income paid to you during the adjustment period. The adjustment period is one month or four consecutive calendar weeks.

If your adjustment period includes days for which you are entitled to a full daily allowance or for which you are not entitled to any daily allowance, these days will shorten your adjustment period. This will create a specific adjustment period that is always shorter than the normal adjustment period that is one month or four calendar weeks.

According to the law, a specific adjustment period requires that we convert the income paid to you during the period to reflect your monthly income. We must do this because the adjusted daily allowance is calculated using the exempt amount and the salary on which the daily allowance is based. These amounts are determined on a monthly basis. It is impossible to compare the amounts to your salary unless the monthly amount is converted to reflect your monthly salary.

In practice, this decision looks strange because the income marked on it is higher than the amount you actually received. The reason for the difference is that the decision shows the calculated income from work, not what you actually received. This does not actually make much different to the amount of your daily allowance, as the calculated income from work only affects daily allowances paid during the specific adjustment period. For the rest of the application period, you will receive a full daily allowance or no daily allowance at all, depending on your case.

Temporary change to the law

The temporary change to the law (HE 61/2020) has taken the specific adjustment period out of use. The temporary law applies to the payment of unemployment benefit for an application period beginning on or after 11 May, but not later than 31 December 2020.

Therefore, as we apply the temporary law, we will no longer shorten the adjustment periods or make calculated conversions to the income. This means that the adjustment period is always 4 consecutive calendar weeks or one month. This, in turn, has practical implications that applicants may not always understand.

For example, the adjustment period may not be the same as the application period or payment period. In any case, we can only pay the daily allowance for the application period, even if it is different from the adjustment period. But the adjustment period determines which income we take into account in the adjustment process. In payment-based adjustment, we take the income paid during the adjustment period into account in the adjustment process. In earnings-based adjustment, we take the income earnt during the adjustment period into account in the adjustment process. In addition, we also take the income paid during a disqualification period into account in the adjustment process. Sometimes, the adjustment period may start even before the application period. When this happens, we will not take income paid before the beginning of the application period into account in the adjustment process.

Different periods

Pay period: The period for which your salary is paid.

Application period: The period for which you apply for a daily allowance. It is usually 4 consecutive calendar weeks or one month. It may be shorter at the start/end of your unemployment/lay-off.

Payment period: The period for which we pay you earnings-related daily allowance. It is usually 4 consecutive calendar weeks or one month. It may be shorter at the start/end of your unemployment/lay-off and when there are obstacles to the payment during the application period.

Adjustment period: The period for which we take income into account in the adjustment process. The adjustment period is always 4 consecutive calendar weeks or one month.

Examples of situations where we would have used the specific adjustment period in the past

Income paid during an obstacle

You work part-time and apply for earnings-related daily allowance for June. Your application period and adjustment period is from 1 June to 30 June. Your pay period is one month, and your payday is the 15th of each month.

You become ill and you also have a period of sickness allowance during your adjustment period, from 15 to 18 June.

When you receive sickness allowance, we cannot pay you unemployment benefit. Because of an obstacle like this, we would normally create two specific adjustment periods around the obstacle. However, with the temporary law, the specific adjustment period is not used. This means that your adjustment period will not change, even if the adjustment period includes a disqualification period caused by the obstacle.

In the adjustment period, we will take into account your salary paid on 15 June 2020. We will not convert the amount of this salary.

We will pay you adjusted earnings-related daily allowance for 1 to 14 June and for 19 to 30 June.

Laid off and working a shorter workday

You have been laid off and work a shorter workday. This means that you are working normally, but every week there is one or more shorter workdays. Your pay period is one month, and your payday is the 15th of each month.

Your application period and adjustment period is one month from 1 June to 30 June. You will be paid for 88 hours on 15 June.

Because you have been laid off and work a shorter workday, we will review your working hours per calendar week. We will compare the hours you worked for the salary paid on 15 June (88 hours in this example) to the maximum working hours in five days (5 x 7.5 h = 37.5 h). Because you exceed the working time limit, we cannot pay you a daily allowance.

Because of an obstacle like this, we would normally create two specific adjustment periods around the obstacle. However, with the temporary law, the specific adjustment period is not used. This means that your adjustment period will not change, even if the adjustment period includes a disqualification period caused by the obstacle.

This means that because you exceed the working time limit, we will give you a negative decision for the period from 15 June to 21 June. But your adjustment period is still the whole month. In the adjustment process, we will take into account your salary paid on 15 June 2020 and we will not convert it.

We will pay you adjusted earnings-related daily allowance for 1 to 14 June and for 22 to 30 June.

Shorter workday and part-time work

You have been laid off and work a shorter workday; 4 hours per day. In addition, you work part-time for another employer, working 1 hour per day. You apply for daily allowance for July and your application period and adjustment period is one calendar month. The employer who laid you off pays you on the 15th and your part-time employer on the 31st.

This means that there are two weeks when you have a payday. We review both these weeks in terms of the working time limit. We compare your working hours to the maximum working hours in 5 days.

You exceed the working time limit from 13 July to 19 July, so we cannot pay you earnings-related daily allowance for the week in question. For the week from 27 July to 2 August, you do not exceed the working time limit.

Although there is an obstacle in your application period, we will make an exception and not create a specific adjustment period. We will pay you earnings-related daily allowance for the periods from 1 July to 12 July and from 20 July to 31 July. In the adjustment process, we will take into account the salaries paid on your paydays and will not convert the amounts.

Shorter working week and full lay-off week

You have been laid off and work a shorter working week. This means that you work normally, but less than 5 days a week. At the same time, you work part-time for another employer; 5 hours per week. Your application period and adjustment period is 4 consecutive calendar weeks. You work Monday to Wednesday and are always laid off on Thursday and Friday.

During the shorter working week, we will review the working time limit per calendar week, according to the law, and also, exceptionally, earnings based. You do not exceed the working time limit during any week. During the week from 15 to 21 June (Midsummer), you had no workdays with either employer. This means that you would normally be entitled to full earnings-related daily allowance and we would create specific adjustment periods around that week.

However, because the specific adjustment periods are exceptionally not used now, we can pay you adjusted daily allowance for the whole 4-week application period without converting your income. We will take all the income you earned during that period into account as income.

Going from part-time work to full-time work

You have worked part-time and apply for earnings-related daily allowance for the period from 29 June to 5 July 2020. You will start a full-time job lasting more than 2 weeks on 6 July 2020.

The adjustment period is always one month or four consecutive calendar weeks. Because your application period is shorter than this, we will create an imaginary 4-week adjustment period going back from the last day of your application period. This means that your adjustment period will be 8 June to 5 July. When we do this, we can avoid delays in processing your application, as we do not need to wait for your payday.

In the adjustment process, we take into account the salary you are paid during the adjustment period without converting the amount of salary (required for specific adjustment periods). If you have no payday during the adjustment period, we will pay the earnings-related daily allowance in full for the period from 29 June to 5 July 2020. If you have a payday during the adjustment period, from 8 June to 5 July, we will pay adjusted earnings-related daily allowance for the period from 29 June to 5 July 2020. In the adjustment process, we will take into account the salary you are paid during the adjustment period. If you have a payday during the adjustment period, from 8 June to 5 July, but we have already taken into account the salary in the adjustment process, we will pay you the earnings-related daily allowance in full from 29 June to 5 July 2020, as we will not take the same salary into account again.

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