Act on the Right of Entrepreneurs to Unemployment Security enters into force on 8 April 2020
Entrepreneurs are temporarily entitled to labour market support to deal with the sudden and unforeseen decline in demand due to the coronavirus epidemic. This solution applies to all entrepreneurs regardless of the type of business. The Act will remain in force until 30 June 2020.
The Government submitted a proposal to Parliament concerning the temporary right of entrepreneurs to unemployment security on 2 April. The proposal was approved by Parliament on 6 April and by the President of the Republic on 7 April 2020.
“Exceptional circumstances call for exceptional and prompt action. We are pleased that this legislative amendment can be brought into force so quickly. Our aim is to secure the livelihood of entrepreneurs in this extremely difficult situation,” Minister of Employment Tuula Haatainen says.
“In order to ease the pressure on entrepreneurs, they will be able to apply for and receive support retroactively if they fulfil the conditions for it,” Minister Haatainen says.
Labour market support can be paid to entrepreneurs between 16 March and 30 June 2020. If an entrepreneur registers as a jobseeker by 15 April 2020, they will be entitled to labour market support for the period starting on 16 March, even if they were not registered as a jobseeker at that time. However, the support will not be paid until the conditions are met.
Under what conditions can an entrepreneur receive labour market support?
To be eligible for labour market support, an entrepreneur must meet the following conditions:
- the entrepreneur’s 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.
- The end of the person’s full-time work or the reduction in income must be due to the coronavirus epidemic.
The entrepreneur does not have to cease their business activities in order to receive labour market support.
How does an entrepreneur apply for labour market support?
In order to receive labour market support, a person must register as a jobseeker with the Employment and Economic Development Office (TE Office) and the TE Office must issue a labour policy statement on their entitlement to labour market support to the Social Insurance Institution of Finland (Kela).
In practice, the process is as follows:
- 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.
- The TE Office issues a labour policy statement to Kela.
- The entrepreneur applies to Kela for labour market support.
- Kela pays the labour market support to the entrepreneur.
The quickest and easiest way to register as a jobseeker is to use the TE services’ Oma asiointi online service. You can access the online service via the te-palvelut.fi website or by going directly to https://asiointi.mol.fi/omaasiointi. You can submit an application for labour market support using Kela’s online service at kela.fi.
Eeva Vartio, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 082 (questions from the media)
TE services national customer service line, tel. +358 295 025 500 (questions from entrepreneurs, please use online services, if possible)