Government proposal: Temporary right of entrepreneurs to labour market support to continue until end of November

During the coronavirus pandemic, entrepreneurs have been entitled to labour market support on less stringent conditions than usual. The Government proposes that the right to labour market support would continue under the same conditions until 30 November 2021.

At present, entrepreneurs are entitled to labour market support due to the effects of the coronavirus pandemic until the end of September. On 9 September 2021, the Government submitted to Parliament a proposal to extend the temporary provisions.

“The Government aims to reopen the society and lift the national restrictions. It will, however, take time before the operating conditions of companies recover. By continuing the temporary right of entrepreneurs to labour market support, we can safeguard their livelihoods in this uncertain situation,” says Minister of Employment Tuula Haatainen.

The extension would apply to an estimated 21,500 entrepreneurs in a month. The extension is estimated to increase spending on unemployment security by about EUR 30 million.

What are the conditions for an entrepreneur to be eligible for labour market support?

As a rule, a person who has been self-employed at a full-time basis is entitled to unemployment benefit once the business activities have ceased completely. During the coronavirus pandemic, entrepreneurs have been able to apply for labour market support without having to terminate their business activities. The end of the person’s full-time work or the reduction in income must, however, be due to the coronavirus epidemic.

An entrepreneur may receive labour market support if, due to the coronavirus pandemic,

• their full-time employment has ended or
• the monthly income from the entrepreneurial activities is less than EUR 1,089.67 per each person engaged in these activities as an entrepreneur.

Labour market support concerns all entrepreneurs regardless of whether they engage in business as self-employed persons or in the form of a company. Support can be granted to entrepreneurs in all sectors.

How does an entrepreneur apply for labour market support?

1. The entrepreneur registers as an unemployed jobseeker and provides an account of the termination of their full-time employment or decrease in income due to the coronavirus epidemic.
2. The TE Office issues a labour policy statement to Kela.
3. The entrepreneur applies to Kela for labour market support.
4. Kela pays the labour market support to the entrepreneur.

If an entrepreneur has already registered as a jobseeker at the TE Office and is entitled to labour market support due to temporary extension of the Act, they should use the services of the TE Office as agreed.

Inquiries:
Iiris Niinikoski, Special Adviser to the Minister of Employment, tel. +358 295 047 372 (questions to the minister) 
Timo Meling, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 084 (questions from the media on labour market support)