Phase
Unemployment security act (1290/2002), Act on public employment and business service (916/2012)
Native name
Työttömyysturvalaki (1290/2002), Laki julkisesta työvoima- ja yrityspalvelusta (916/2012)
Type
Redundant employees entitlement to public support
Added to database
14 July 2015

Article

whole regulations of Unemployment security act (1290/2002) and Act on public employment and business service (916/2012)


Description

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. 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. 

The Act on public employment and business service 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 is normally arranged within two weeks after 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 unemployed fails to draft an employment plan, or to follow the plan, he or she may be denied the right to unemployment benefit for a predefined period of time. The employment plan must be updated jointly by the unemployed and PES at least every three months.

An unemployed who without an acceptable reason has resigned, caused her/his own dismissal, or refused a job offer may be denied the right to unemployment benefit for a predefined period.

PES and/or the regional Centres for Economic Development, Transport and the Environment (ELY centres) advice and distribute information on:

  • vacant positions and job seeking;
  • labour force availability and acquisition;
  • training and skills development opportunities;
  • the labour market, occupational sectors and occupations;
  • business start-up and development activities;
  • services, subsidies and compensations.

Beginning 2025, the responsibility for these tasks will be transferred to the municipalities.

PES, ELY centres and Kela together offer financial and non-financial support for different employment measures. These include (but may not be limited to):

  • long-distance commuting;
  • counselling and financial support for starting a business;
  • job trials;
  • education and training;
  • subsidised employment.

Further, the "Nordic labour market service model" - a new model for employment services - entered into force on May 2nd, 2022. In this new model, jobseekers apply for work on their own initiative and receive individual and intensive support for their job search at an earlier stage. Jobseekers are required to apply for a certain number of jobs in order to continue their right to receive unemployment security. A jobseeker 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, jobseekers have to apply for work. As a rule, jobseekers must apply for four job opportunities per month. However, the situation of each jobseeker is assessed individually, and thus the required number of applications may vary.

The first time a jobseeker fails to submit job applications due to forgetfulness or neglect to submit job applications, the jobseeker will receive a reminder. The next time, the jobseeker will be sanctioned to lose the benefits for seven days on which benefits are paid. If this happens again, jobseekers will lose the benefits for 14 days. After that, jobseekers lose their right to unemployment benefit until further notice.


Commentary

Unemployment funds, often tied to trade unions, provide additional financial support for their members.

In 2021, the local government pilots on employment started. In this pilot, certain groups of job-seekers will be transferred to the municipalities that participate in this pilot. The aim of the pilot is to develop supporting services for jobseekers that better match their needs. The pilot will run until the nationwide transferring of the employment services (TE-services) to the municipalities, that is, January 1st, 2025.


Additional metadata

Cost covered by
National government
Involved actors other than national government
Public employment service Regional/local government Other
Involvement (others)
The Social Insurance Institution (Kela)
Thresholds
Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Citation

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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