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Government proposal: Unemployment security related tasks from TE Offices to unemployment funds and Kela

Ministry of Economic Affairs and Employment 13.1.2020 16.01
Press release

There are plans to transfer the majority of the current unemployment security and alternation leave related tasks of TE Offices to the payers of unemployment benefit, i.e. the Social Insurance Institution Kela and the unemployment funds. The Ministry of Economic Affairs and Employment has today, on 13 January 2020, sent for comments a draft government proposal regarding legislation on how the implementation of unemployment security and alternation leave schemes is to be organised.

The Ministry of Economic Affairs and Employment has on 13 January 2020, sent for comments a draft government proposal regarding legislation on how the implementation of unemployment security and alternation leave schemes is to be organised.

The objective is to allow TE Offices to focus on providing employment services and supporting jobseekers’ access to employment. Transferring more responsibility for determining whether an applicant is eligible for unemployment benefit to the payers of the unemployment benefit would also simplify the unemployment benefit application process.

The costs incurred by the payers of the unemployment benefit arising from these new tasks would be reimbursed from State funds. The workload associated with the tasks to be transferred from the TE Offices will be re-allocated to services that support access to employment and improve the availability of skilled labour. This transfer of tasks would not require any transfer of personnel from the TE Offices to the providers of unemployment benefit.

The legislative amendments are to come into force on 01 April 2021. According to the proposal, the payers of unemployment benefit would determine whether the person qualifies as unemployed, and whether business activity, self-employment and studies affect the person’s entitlement to unemployment benefit.

Meanwhile, the TE Offices would continue to determine whether the person qualifies as a jobseeker registered with a TE Office and looking for full-time work, as referred to in the Unemployment Security Act. In addition, the TE Office would decide on possible sanctions, for granting unemployment benefit to support the jobseeker’s self-motivated studies, and for issuing a statement to confirm the jobseeker’s participation in employment promoting activities.

The deadline for comments on the draft proposal is on 6 March 2020. The Government proposal is to be submitted to the Parliament in the spring session of 2020.

Inquiries:

Eeva Vartio, Senior Specialist, MEAE, tel. +358 295 047 082, [email protected]

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