Entrepreneurs have been temporarily entitled to labour market support because of the coronavirus pandemic. On 12 May 2021, the Government submitted a proposal to Parliament to extend the right of entrepreneurs to labour market support until 30 September 2021. The aim is to ensure the livelihood of entrepreneurs in the uncertain situation caused by the pandemic.
All entrepreneurs entitled to support regardless of sector
The temporary extension to entrepreneurs’ right to unemployment benefit entered into force on 8 April 2020. The extension made entrepreneurs eligible for labour market support in a situation where the amount of work or income received from business activities has decreased due to the pandemic. The right to claim labour market support applies to all entrepreneurs regardless of whether they engage in business as self-employed persons or in the form of a company. Support can be granted to entrepreneurs in all sectors.
Closing down the business is not a condition for being entitled to labour market support. When entrepreneurs or self-employed persons close down their business, they become eligible to unemployment benefit under other provisions of the Unemployment Security Act.
How can entrepreneurs apply for labour market support?
- 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.