Factsheet for case FI-2020-17/540 – Updated – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 20 April 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Income protection beyond short-time work
– Income support for unemployed
|Author||Amanda Kinnunen (Oxford Research) and Eurofound|
|Case created||13 April 2020 (updated 10 July 2020)|
According to sections 7 and 5 of the Unemployment Security Act (Työttömyysturvalaki) (1290/2002), labour market subsidy and basic or earnings-related unemployment allowance can be paid out after a job-seeker has been unemployed or temporarily laid-off for 5 working days.
Some of the COVID-19 related temporary amendments to the Finnish labour market regulation have weakened the possibilities of employees to prepare for unemployment. As a result of this, temporary amendments to the Unemployment Security Act and other related Acts have been made. These amendments remove the waiting period in the sense that job-seekers will receive benefits from day one of the unemployment period. During this period, the state will cover for the expenses (after the waiting period unemployment funds will cover parts of the earnings-related unemployment allowance of their members).
This measure applies to all job-seekers. As for usual, persons who are laid off temporarily or dismissed (either for personal reasons or financial or production-related reasons) need to register with the TE-services as unemployed job-seekers on the first day of the lay-off or unemployment period.
Also during the waiting period the amount of financial support is dependent on whether the job-seeker is a member of an unemployment fund and meets the specific criteria (temporary changes due to COVID-19 has been made) and can apply for earnings-related or basic unemployment allowance or not. Those who do not qualify for earnings-related or basic unemployment benefit receive labour market subsidy.
The temporary removal of the waiting period applies to cases where the waiting period has started between 16 March 2020 and 7 July 2020.
By the end of May 2020, there were 432,700 unemployed job-seekers in Finland which is 206,200 more than the year before. This includes both unemployed job-seekers and temporarily laid off job-seekers.
||Does not apply to businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
In March 2020, the peak-level social partners (the Confederation of Unions for Professional and Managerial Staff in Finland, the Central Organisation of Finnish Trade Unions SAK, the Finnish Confederation of Professionals STTK and the Confederation of Finnish Industries EK) jointly proposed a set of actions for the Finnish Government. The measures were proposed as a package that includes both measures that support adaptation of businesses to the new market situation and measures that improve the situation of employees who have been dismissed or temporarily laid off.
State-funded unemployment security during the waiting period was part of this proposal.
The peak-level social partners stress that this measure is part of the wider package of measures (proposed by them in March 2020) and amendments to labour law that include both measures that facilitate adaptation of businesses to the new market situation but also measures that support employees who are being either temporarily or permanently dismissed.
Eurofound (2020), State-funded unemployment security during the waiting period , case FI-2020-17/540 (measures in Finland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.