Lay-off

Lay-off means that employers may, when certain criteria specified in the collective agreement are met, suspend work and the payment of wages as well as the performance of any work by the employees, even though the employment relationship continues. Read more about lay-offs >

Legislative amendments related to lay-offs

The Government has implemented most of the measures proposed by the labour market organisations to help employees and employers cope with the current emergency. The proposed measures are specifically designed to offer financial support for people who are laid off or lose their jobs. At the same time, the measures help companies adjust to these difficult times.

The periods of time required for an advance notice of lay-offs have been shortened. Temporarily, the time required for an advance notice of lay-offs and the duration of employer-employee talks has been cut down to five days. These amendments do not apply to the public sector. The amendments are valid from 1 April to 31 December 2020.

As of 1 April 2020, laid-off employees are entitled to unemployment allowance irrespective of any business activity or studies. The amendment to the Employment Security Act is in force up to 31 December 2020.

Waiting period and maximum eligibility for unemployment allowance

Parliament has adopted temporary amendments to the Employment Security Act concerning the waiting period and maximum period of eligibility. The Act is in force from 15 April to 31 Deember 2020.

As a result of the amendment, both the unemployed and those laid off can also be paid unemployment allowance for the waiting period, if the first day of the waiting period falls between 16 March and 31 December 2020.

If the lay-off starts during 16 March–31 December 2020, the days for which the allowance is paid will not count against their maximum eligibility for unemployment allowance in determining the maximum period of 300/400/500 days for which earning-related benefits are paid. The amendment concerning the maximum period does not apply to the unemployed, reasons comparable to a lay-off or inclement weather preventing the performance of work.

Due to the latest amendment to the law, the maximum period will not accrue in any case of unemployment between 1 July and 31 December 2020.