Factsheet for case FI-2020-17/546 – 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)|
In accordance with section 6 of Unemployment Security Act (Työttömyysturvalaki) (1290/2002), the basic or earnings-related unemployment allowance is limited to 300-500 days. After this period, job-seekers will receive labour market subsidy.
As a result of changes in the market situation caused by the outbreak of COVID-19, the Parliament has accepted a temporary amendment that cancels the unemployment allowance deductible period in the case of temporary lay-off. In the case of dismissal, the deductible period applies as for usual.
This measure applies to all job-seekers that have been temporarily laid off between 16 March 2020 and 6 June 2020 and meet the criteria for either basic unemployment allowance (earnings-related unemployment allowance.
For those job-seekers that have been temporarily laid-off and who qualify for earnings-related unemployment allowance, this measure has financial significance since it extends the period they can receive earnings-related unemployment allowance in case they are dismissed after the lay-off or in the following months. The average earnings-related unemployment allowance is €65 per workday whereas the basic unemployment allowance and the labour market subsidy are €34 per workday.
By the end of May 2020, there were 158,100 temporarily laid off job-seekers in Finland. This was 5,600 less than in April 2020. In comparison to May 2019, the number of temporarily laid off job-seekers had increased by 149,800. This includes only those job-seekers that were laid-off on a full-time basis.
||Does not apply to businesses||Does not apply to citizens|
Public employment service
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.
Cancellation of the unemployment allowance deductible period was part of this joint proposal.
Furthermore, peak-level social partners were consulted during the drafting period of these amendments.
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), Cancellation of the unemployment allowance deductible period in the case of temporary layoff or dismissal, case FI-2020-17/546 (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.