Sunday 10/24/21

Unemployment benefit for employees and entrepreneurs extended

Laid-off employees have a temporary right to study full-time without an effect on their unemployment benefit.

Entrepreneurs hit by the pandemic may receive labor market support until the end of March 2021.

Cafeteria Bar coffee bar tender entrepreneur by Maria Fernanda Perez

The Government wants that the legislative amendments relating to the unemployment benefit of laid-off employees and entrepreneurs, be partly continued. The aim is to safeguard their livelihoods amid the prolonged coronavirus pandemic.

The government submitted a proposal to Parliament on Friday 19 November to extend some of the temporary amendments, which are set to expire at the end of 2020. The proposal is included in the supplementary budget proposal for 2021.

Study without losing unemployment security

Laid-off employees have had a temporary right to study full-time without the studies having an effect on their unemployment benefit. The Government now proposes that this amendment remain in force until 31 December 2021.

The amendment will apply to those laid off on or after 16 March 2020.

The Ministry of Economic Affairs and Employment expects this measure will help laid-off employees, who work and study, to apply for and receive unemployment benefit during the lay-off, because the TE Office does not assess whether the studies are of full-time or part-time nature.

Labour market support for entrepreneurs

Entrepreneurs have been temporarily entitled to labour market support (the smallest monthly benefit that social security provides to the unemployed) if full-time work in the company has ended due to the coronavirus pandemic.

The Government proposes that the provision remain in force until 31 March 2021.

In order to receive support in the labor market, a person must register as a job seeker with the unemployment services (TE Office), which must issue a statement of labour policy about their right to this payment to the Social Security Institution (Kela).

Kela has paid labour market support to approximately 42,500 entrepreneurs in April–September 2020.

In addition, the provision under which unemployed jobseekers will not lose their right to unemployment benefit due to the failure to implement the employment plan will be extended until 31 January 2021.