Conditions for claiming job alternation compensation

Job alternation leave is an arrangement whereby

• an employee takes a job alternation leave in accordance with an agreement made with their employer
• the employer hires a person registered as an unemployed job seeker with the TE Office for the duration of the leave

The total working hours of the employee(s) hired for the duration of the job alternation leave must be at least equal to the regular working hours of the employee taking the alternation leave. The law sets requirements for the duration of the substitute’s unemployment. For more information, please contact the Employment and Economic Development Office (TE Office).

You must make a written agreement with your employer for taking a job alternation leave. The job alternation agreement must be submitted to the TE Office before the start of the job alternation leave. In addition, you must provide the TE Office with a copy of your substitute’s employment contract and your pay certificate for the last 13 months (with any unpaid periods itemised). The TE Office will assess your eligibility for job alternation leave as well as the effect of your or your family’s possible business activities and issue a statement on the matter to the fund.

You can take job alternation leave if:

• you have a minimum of 20 years of employment history in pension-insured work prior to the start of your job alternation leave (see Amount of job alternation compensation and required employment history)
• you are in full-time employment (more than 75%) with a continuous service relationship with the same employer for at least 13 months immediately preceding the start of the job alternation leave.

The 13-month period may include a maximum of 30 calendar days of unpaid absence, including unpaid periods due to family leave, such as paternity leave. Layoffs, study leaves and unpaid days taken for attending to a position of trust also count as days of unpaid absence, even if you receive a compensation for these days in lieu of pay.

Absences resulting from illness are not counted as unpaid absence days.

There is a maximum age limit for an employee to take job alternation leave. The alternation leave has to be started at least three years before the age limit for the old-age pension determined by the National Pensions Act is met. The maximum age limit does not apply to those born before 1957.