Extended Restructuring protection aged 55 and over - www.pau.fi

Extended Restructuring protection aged 55 and over

Restructuring protection generally refers to support measures carried out jointly by the employment authorities and the employer in situations where an employee is dismissed for production-related or financial reasons.

Its goal is to promote the re-employment of the dismissed person and to ease the transition to a new career path. This basic form restructuring protection applies to all dismissed employees.

The expanded restructuring protection package is a special, more comprehensive support package for dismissed employees aged 55 and over.

Those eligible for the expanded restructuring protection have the right to:

• restructuring protection allowance, which corresponds to one month’s salary. The restructuring protection allowance is paid out by an unemployment fund or Kela.
• restructuring protection training, with a maximum length of 6 months and a value equivalent to up to 2 months’ pay. Restructuring protection training is provided and arranged by the employment authority.
• employment leave, which lasts 5 days longer than usual.

You are eligible for expanded restructuring protection and entitled to restructuring protection allowance if:

• you have been terminated due to production-related and financial grounds
• you have reached the age of 55 years no later than on the date of termination
• your employment has lasted for at least 5 years, either continuously or with interruptions of no more than 30 days, with the employer terminating the relationship
• you have registered as a jobseeker at Job Market Finland within 60 days of the date of termination. The date of termination is the day you have received your notice of termination. Therefore, if the period of notice is long, you must already register as a jobseeker during the period of notice before the employment relationship ends and the unemployment period begins.

To receive Restructuring protection allowance, you don´t need to be unemployed. It can also be paid in situations where, during the notice period, the employee becomes employed by another employer.

Receiving protection allowance doesn´t prevent the payment of earnings-related unemployment allowance, nor is it deducted from unemployment benefits. For tax purposes, it is advisable to order a revised tax card specifically for the benefit. Otherwise, tax will be withheld according to the additional withholding rate on the tax card for wage income, or at a rate of 60%.

Applying for Restructuring protection allowance

1) Register as a jobseeker on the Job Market Finland service within 60 days of the date you received your notice of termination.

2) Submit an application for Restructuring protection allowance through the unemployment fund’s eService once the employment authority has issued a statement confirming your entitlement to protection allowance .

- Restructuring protection allowance can be applied for already during the notice period.

- The application must be submitted no later than three months after the end of the employment relationship.

3) Attach the notice of termination to your application.

- A good-quality photograph or a PDF file is sufficient.

- Attachments can be submitted to the fund through the eService.

For more information on unemployment security and other benefits, visit a-kassa.fi/en/front-page. Customer service hours: telephone service +358 20 690 455, Monday to Friday, 8:30 a.m. to 12:00 noon. The eService Live Chat is available Monday to Friday, 8:30 a.m. to 3:00 p.m.

Source: Open Unemployment Fund A-kassa (A Fund)