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Avoid common pitfalls when your employment ends during lay-off

As we are moving towards autumn, we have been informed that many employer-employee negotiations will take place. It is possible that lay-offs will turn into dismissals. If any such changes happen to you, you should always remember to notify the payer of your unemployment benefit.

Notify us of any changes

When the employer terminates the employment contract during the lay-off, the employer must observe the periods of notice as agreed. What this means in practice is that the employer has the obligation to pay the employee a compensation equivalent to the pay for the period of notice. If the employer has laid off the employee using a lay-off notification period of more than 14 days, the employer may deduct a pay sum of 14 days from that.

We cannot pay you earnings-related daily allowance for the period during which you are entitled to receive pay for the period of notice or an equivalent compensation. It is important that you remember to notify us of the termination of your employment relationship in your application.

If you do not notify us of the termination of your employment, we could end up paying you earnings-related daily allowance for a period during which you are not entitled to it.

Please remember to tell us in your application if your employment relationship has ended during the lay-off period.

What to look out for

If you are entitled to receive pay for the period of notice, the earnings-related daily allowance cannot be paid. It is irrelevant whether or not the employer has actually paid you a compensation equivalent to the pay for the period of notice.

For example, you and your employer might have agreed that the employer does not have to pay you a salary for the period of notice. This would not, however, take away your right to receive pay for the period of notice, so we cannot pay you daily allowance even if your pay for the period of notice has not been paid by the employer.

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