Originally published in Acatiimi 9/2016
There will be several changes in the Unemployment Act and also some to the Employment Contracts Act. I will discuss the Employment Contracts Act first and the Unemployment Act second.
There will be new terms for hiring long time unemployed job seekers in fixed-term contracts. Those who have been unemployed for at least the past 12 months, may be hired on a fixed-term contract without a specific reason, as is normally demanded by the law.
The trial period will be lenghtened from 4 months to 6.
The re-employing obligation after termination of the employment contract due to collective reasons will be shortened from 9 months to 4 months.
Unemployment Act
Firstly the maximum payment period will be shortened from 500 days to 400 days or 300 days depending on the work history of our unemployed member. The amendment applies to the maximum payment periods of daily allowance, if the first day the benefit is paid for is after 1.1.2017. Payment periods that have started in year 2016 or earlier and are still unfinished, will not be shortened based on this amendment. The amendment applies to situations where the member applies for the unemployment allowance for the very first time and also to situations where the member meets the employment condition again. The maximum payment period is 300 days if the member has at most 3 years of work history when meeting the employment condition or when renewing it. The maximum payment period is 400 days if the member has over 3 years of work history when meeting the employment condition or when renewing it. The maximum payment period is 500 days if the member has turned 58 years before meeting the employment condition and has at least 5 years of work history during the last 20 years.
The amendment does affect members of Unemployment Fund as the current maximum payment period of 500 days in future applies only to members who have turned 58 years. The most typical maximum payment period will probably be 400 days.
Secondly, the liability/waiting period will be extended from five weekdays to seven. The amendment applies to situations where the first accumulating day is 1.1.2017 or after.
The amendment does affect members in Unemployment Funds as situations when the liability period is drawn, nor how time required is counted, were not changed in the amended regulation. Liability periods that currently are 5 weekdays, will be 7 weekdays in the future. The liability period is defined as being completely unemployed, so if you are working part-time, the liability period is accumulated more slowly than when you are completely unemployed.
Thirdly, the entitlement to receive an increased earnings-related component based on a long work history will be revoked. The amendment applies to situations where the employment is terminated 1.1.2017 or after.
And finally, the increased component paid for the duration of employment promotion measures will be cut from 58/35% to 55/25%.
Text by Mia Weckman