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Law drafting continues to centralise unemployment security tasks within the TE Administration

Ministry of Economic Affairs and Employment
Publication date 20.4.2020 9.31 | Published in English on 20.4.2020 at 12.42
Press release

The Ministry of Economic Affairs and Employment has explored opportunities of transferring tasks related to the implementation of unemployment security and alternation leave schemes from the employment and economic development offices (TE Offices) to the Social Insurance Institution Kela and the unemployment funds. The preparation process revealed that the transfer of tasks would result in a significant cost increase. For this reason and because of the upcoming local government trials, preparations will continue by centralising unemployment security tasks within the TE administration.

This centralisation of tasks would balance the workload between different TE Offices, which, in turn, would harmonise the unemployment security-related processing times and the application of legislation.

If unemployment security tasks were centralised within the TE administration, this would, in practice, require placing these tasks in an unemployment security unit that would operate in conjunction with one of the TE Offices, separately from customer services. The operations of this unit could be organised in such a way that the personnel could continue to work in their current locations.

Experiences from local government trials to be taken into account

The Ministry of Economic Affairs and Employment is also making preparations for local government trials on employment. The trials would involve transferring a significant part of the TE Offices’ customers, resources and powers to the participating municipalities. While the trials are under way, the Ministry will prepare a proposal for the organisation of TE services after the trial period, which will end in 2023.

In connection with the preparations for centralising unemployment security tasks, an assessment will be conducted on the division of powers between the TE Offices and the municipalities participating in the local government trials. The results of local government trials can be taken into consideration in due course in the development work on the implementation of the unemployment security system. The upcoming social security reform may affect the implementation development needs.

The Government proposal on centralising unemployment security tasks may be submitted to Parliament in autumn 2020 at the earliest. The date of entry into force will be decided later.

Eeva Vartio, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 082

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