Terminating a prolonged, indefinite lay-off

Some of the lay-offs that started in spring have continued for a long time. If you have been laid off for long, you can terminate your employment relationship without losing your right to receive pay for the period of notice. You will not, however, be entitled to earnings-related daily allowance for the same period.

If your lay-off has lasted continuously for more than 200 days, you can terminate your employment contract and remain entitled to salary for the period of notice. What this means in practice is that the employer will pay you a compensation equal to the pay for the period of notice. If the employer has laid you off using a period of notice of more than 14 days, the employer may deduct 14 days from the period of notice.

If you resign before your lay-off has lasted for 200 days, you are not entitled to salary for the period of notice. The Employment Contracts Act states, however, that you can do so. If you know the date when your lay-off will end, you do not have the right to resign without a period of notice during the seven days preceding the end of the lay-off period.

We cannot pay you earnings-related daily allowance for the period during which you are entitled to salary for the period of notice. Please remember to notify us in your application that your lay-off has ended and that you are entitled to receive pay for the period of notice.

Acceptable reason for termination of employment

If you resign from your job, the TE Office will assess whether you had a valid reason for your resignation. If you did not, you might get a period with no allowance. According to established case law, resigning due to a prolonged lay-off is a valid reason. In other words, resigning during a lay-off that has lasted continuously for more than 200 days will not lead to a suspension period without allowance. However, the validity of the reason for resignation is always determined case-by-case after comprehensive consideration. Always discuss your options with the TE Office before making any decisions about terminating your employment.

Current topics

Back to the front page of Topical