The Act on the Right of Entrepreneurs to Unemployment Security enters into force on 8 April 2020

8.4.2020

The Government proposes that because of the coronavirus epidemic entrepreneurs would be enti-tled to labour market support. This would be a temporary measure on the grounds of sudden and unforeseen decline in the demand, applying to all entrepreneurs regardless of the type of business. The Act will remain in force until 30 June 2020.

If the entrepreneur registers as a jobseeker no later than 15 April 2020, he or she is entitled to the labour market support for the time preceding this, starting on 16 March, even if he or she had not been registered as a job seeker during that time. However, support will not be paid until the conditions have been met.

What are the conditions for entrepreneurs to be entitled to labour market support?

What is required to be eligible for labour market support:

  • full-time employment of the entrepreneur has ended or
  • monthly income from entrepreneurial activities is less than EUR 1,089.67 per each person engaged in it as an entrepreneur.

The end of full-time work or the reduction in income should be due to the coronavirus epidemic. Closing down the business is not a condition for being entitled to labour market support.

How does an entrepreneur apply for labour market support?

A condition for the payment of labour market support is that a person registers with the Employment and Economic Development Office (TE Office) as a jobseeker and the TE Office gives a labour policy statement on his or her entitlement to labour market support to the Social Insurance Institution Kela.

In practice, the process is the following:

  • The entrepreneur registers as an unemployed job seeker and provides an account of the termination of full-time employment or decrease in income due to the coronavirus epidemic.
  • The TE Office gives a labour policy statement to the Social Insurance Institution (Kela).
  • The entrepreneur applies for labour market support from Kela.
  • Kela pays the labour market support to the entrepreneur.

The quickest and easiest way to register as a jobseeker is to use the Oma asiointi e-services of the TE Services.

Read more

The Act on the Right of Entrepreneurs to Unemployment Security enters into force on 8 April 2020 (7.4.2020, tem.fi)

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