There are various situations of unemployment; employees can lose their jobs due to a dismissal, be temporarily laid off, or be partially unemployed, because the employer only offers part-time work. When facing unemployment, the livelihood can be arranged and there is help available.
If you become unemployed, you must register in the TE office as a job-seeker looking for a full-time job. One essential precondition for unemployment benefit is that the unemployed job-seeker is available to the job market and the job search is in effect in line with the instructions of the TE office.
Unemployment benefits
Unemployment benefits include an earnings-related unemployment benefit paid by the unemployment funds, a basic daily allowance paid by Kela and a labour market subsidy. The basic unemployment allowance and labour market subsidy are of the same amount.
An unemployment fund is a community with either employees or entrepreneurs as members. It provides its members with protection of earnings for the unemployment period. Membership in an unemployment fund is the best way to secure livelihood during unemployment. Then the earned income will affect the amount of the unemployment benefit, i.e. the higher your past income, the better the unemployment benefit.
Unemployment benefit is paid in an adjusted form if you become employed part-time. If you have been absent from the labour market without an acceptable reason for over six months, you have no right to a daily unemployment benefit until your previous employment requirement has been met again. Read more about unemployment benefits here.
Previous employment requirement
To receive the daily unemployment benefit, you must have met the previous employment requirement. Your previous employment requirement is met when you have been in paid work for 26 calendar weeks (approx. six months) in total in the previous 28 months and the working time has been at least 18 hours per week. The pay must be in line with the collective labour agreement. The work does not have to be uninterrupted, the 26 calendar weeks can be accrued from several shorter employment relationships.
Waiting period
A general obligation for the recipient of the unemployment benefit is to actively seek work and education and to carry out the employment plan. The employment plan is a plan compiled by the TE office together with the job-seeker, and it is advisable to actively affect its content.
The waiting period is the uncompensated term during which the unemployment benefit cannot be paid. The waiting period is provided in the Unemployment Allowances Act. A waiting period is set for the unemployed, if they have acted in a reproachable manner with respect to labour policy, such as refused or resigned from work without a valid reason. Waiting periods are also imposed in situations where the unemployed job-seeker does not comply with the employment plan of the TE office or refuses services that would advance employment.