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EMPLOYMENT CONDITION 13 WEEKS

13 calendar weeks of work that meets the employment condition during the period that the employee has been a member of the unemployment fund may be sufficient to fulfill the required employment condition to receive earnings-related allowance.

The 13-week employment and membership condition can be applied to an employee if 

BENEFITS ARE PAID DURING THE WAITING PERIOD

With the temporary amendment to the law, the waiting period is five (5) weekdays. Usually, it is the equivalent of five days of unemployment. All days for which unemployment benefit can be paid are included in the waiting period.

The unemployment benefit to which the applicant is entitled to (adjusted or full) is paid during the waiting period.

The temporary amendment applies to all applicants of unemployment benefit whose first day of the waiting period is between 16 March and 6 July 2020.

MAXIMUM PAYMENT PERIOD IS NOT USED FOR EMPLOYEES WHO ARE TEMPORARILY LAID OFF

Earnings-related allowance paid on the basis of a temporary layoff does not accrue the maximum payment period of unemployment allowance between 16 March and 30 June 2020. The temporary amendment concerns new temporary layoffs that begin on or after 16 March 2020. 

The maximum payment period is not used if the temporary layoff started on or after 16 March 2020, and the earnings-related allowance is paid during 16 March 2020 – 30 June 2020. If the temporary lay-off continues on 1 July 2020, the paid earnings-related allowance accumulates the maximum payment period calculator as usual from that time onwards. 

The amendment only applies to employees who have been temporarily laid off. If earnings-related allowance is paid on the basis of a reason corresponding to a temporary layoff, unemployment or part-time work, the paid earnings-related allowance continues to accumulate the maximum payment period calculator as before.

CHANGES IN THE ADJUSTED DAILY ALLOWANCE CONCERN BOTH INCOME AND EXEMPT AMOUNT

The provisions on the special adjustment periods and the calculated earned labour income based on the special periods do not apply during the daily allowance application period starting between 11 May and 31 October 2020. Therefore, earned labour income is not calculated to reflect the monthly income in situations where the application period includes a period of time during which daily allowance is not accrued. The adjustment period is always either 4 calendar weeks or a month. Any income affecting the amount of the daily allowance accrued by the applicant during the adjustment period is considered income. 

Business income can be taken into account based on the applicant’s own declaration if their income has decreased due to the coronavirus pandemic.

The exempt amount of the adjusted daily allowance will increase to EUR 500 pcm from the previous amount of EUR 300 pcm. The exempt amount is EUR 465 for a period of four calendar weeks. The higher exempt amount is applied to payments of earnings-related daily allowances over the application period starting between 1 June and 31 October 2020. 

ADVANCE PAYMENT ALLOWS PAYMENT OF UNEMPLOYMENT BENEFITS WITHOUT A DECISION FOR A MAXIMUM OF SIX MONTHS

Unemployment benefit may be paid for a maximum of 6 months without a decision as “advance payments”. The fund may use advance payment if there is a risk of unreasonably long application processing times. 

EASED CONDITIONS FOR RECEIVING COMMUTING AND RELOCATION ALLOWANCE

With the amendment to the law, the two-way commute time requirement for receiving commuting and relocation allowance is reduced to 2 hours from the previous 3 hours. A shorter commute time will also apply if you move from a location within a similar distance due to work. The amendment only applies to those starting in a full-time position, since the time limit for part-time positions is already 2 hours. The shorter 2-hour commute time requirement applies to employment contracts commencing between 12 June and 31 October 2020.

MAKE SURE TO REGISTER WITH THE TE OFFICE

The payment of unemployment benefit requires an ongoing job search with the TE office. Do not forget to register as an unemployed applicant of full-time work at the TE Office when the temporary layoff or unemployment starts at the latest!