Newsletter June 12th 2019

New amendments to the Unemployment Security Act will enter into force at the beginning of July. You will find information on them in this letter. Finland’s new government has published its programme, and it includes many issues related to unemployment security. We have compiled them in this letter.

The position of family members of entrepreneurs will improve

An amendment of law that will improve the position of family members of entrepreneurs regarding unemployment security will enter into force on 1 July 2019. As a result of the amendment, the non-owner family members of entrepreneurs who work in the company shall be considered as a general rule salaried employees when the Unemployment Security Act is applied.

According to the currently valid Unemployment Security Act, a family member of an entrepreneur can be considered to be an entrepreneur, even if the person has no holding or authority in the company. That deviates somewhat from the definitions in the pension acts. It has resulted in incorrect insuring in terms of unemployment security, as a result of which family members of entrepreneurs have remained outside the unemployment security.

A change in suspension period as of the beginning of July

The Employment Contracts Act was amended at the end of last year. Specifications were made in sections concerning termination of employment. At the same time, it was decided to amend the Employment Security Act as well, because the Employment Security Act includes consequences for termination of employment without an acceptable reason.

New government programme promises continuity in the development of unemployment security

The main message of the government programme is that unemployment security will be developed and active labour policy measures will be increased, the goal being to shorten unemployment periods and prevent prolonged unemployment.