European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Whole regulations of Unemployment Security Act (1290/2002) and Act on the Organisation of Employment Services 380/2023, which replaced the previous Act on public employment and business service (916/2012) on 1 January 2025.
The Unemployment Security Act outlines the conditions under which the unemployed person will receive unemployment benefit. Unemployment benefit, provided by the national Social Insurance Institution (Kela), is normally available for unemployed people aged 17-64 who meet the employment criteria of 12 months under a 28 month period. This employment criteria cannot be met by wage-subsidised work. The local government of the place of residence of the unemployed is liable to pay part of the costs. The type and amount of the benefit depends on the duration of unemployment and whether the person has been employed before. Other income, such as other benefits, temporary wages, or entrepreneurial revenues, may also affect the amount of unemployment benefit to be paid.
Act on the Organisation of Employment Services defines the responsibilities and scope of public employment services (PES). PES must inform the unemployed of the available services and terms and conditions of job seeking, and keep regular contact with the unemployed. A first interview or meeting with PES is arranged within five working days from when the unemployed registers as a job seeker. In cooperation with the PES, the unemployed will draw up a personalised employment plan based on his or her objectives and estimated needs. The unemployed is obliged to follow the employment plan, to actively look for work opportunities and training, and to take up employment measures.
If the person who becomes unemployed has resigned without an acceptable reason, caused her/his own dismissal, or refused a job offer, they may be denied the right to unemployment benefit for a predefined period. The same applies if the job-seeker does not follow their employment plan.
From the beginning of 2025, the statutory responsibility for public employment services was transferred to the municipalities. The municipalities form 45 employment areas, which give advice and distribute information on:
PES and Kela together offer financial and non-financial support for different employment measures. These include (but may not be limited to):
Further, the "Nordic labour market service model" - a new model for employment services - entered into force on May 2nd, 2022. In this new model, job seekers apply for work on their own initiative and receive individual and intensive support for their job search at an earlier stage. Job seekers are required to apply for a certain number of jobs in order to continue their right to receive unemployment security. A job seeker will receive a reminder in the first case of forgetfulness or neglect. Thus, the three pillars that the new model is constructed upon are: a thorough assessment of individual service needs; intensive support for job search and other related services; and job searching on one's own initiative.
In order to receive unemployment benefits, job seekers have to apply for work. As a rule, job seekers must apply for four job opportunities per month. However, the situation of each job seeker is assessed individually, and thus the required number of applications may vary.
The first time a job seeker fails to submit job applications due to forgetfulness or neglect to submit job applications, the job seeker will receive a reminder. The next time, the job seeker will be sanctioned to lose the benefits for seven days on which benefits are paid. If this happens again, job seekers will lose the benefits for 14 days. After that, job seekers lose their right to unemployment benefit until further notice.
The job seeker can accept a certain amount of wage employment while still retaining their status in the benefit system. Job seekers that accept part-time work are eligible for adjusted unemployment allowance [soviteltu työttömyysetuus]. This adjusted allowance used to have a maximum income ceiling. If the job seeker earned less than this, the earned income did not affect the level of unemployment benefits. This provision was removed in April, 2024, as was the child subsidy to unemployment benefits.
Unemployment funds, often tied to trade unions, pay out income adjusted unemployment benefits for their members.
Preceding the nation-wide transferring of the employment services (TE-services) to the municipalities on 1 January 2025, several pilots were ran to trial the model. Groups of job seekers were transferred to the municipalities that participated in the pilots. The aim of the pilots were to develop support services for job seekers that match their needs better than the national service model.
Eurofound (2015), Finland: Redundant employees entitlement to public support, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/redundant-employees-entitlement-to-public-support/finland
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