30.11.2022
New restructuring protection allowance
The system of ‘additional days’ of unemployment security is being phased out, and this includes abolishing the entitlement for additional days altogether for those born in or after 1965. A new restructuring protection package is being introduced for persons aged 55 and over. The changes become law on 1 January 2023.
Restructuring protection package for persons aged 55 and over
The new restructuring protection package for persons aged 55 and over enters into force on 1 January 2023. Those eligible for restructuring protection will be entitled to
- a restructuring protection allowance corresponding to one month’s salary,
- restructuring protection training for a period of up to six months, corresponding in value to a maximum of two months’ salary, and
- five extra days of re-employment leave for those whose notice period is longer than one month.
Unemployment funds answer their members’ questions about the restructuring protection allowance and pay allowances based on their members’ applications. Enquiries concerning restructuring protection training should be addressed to the TE Office. For information about re-employment leave and other aspects of the restructuring protection model, talk to your employer or trade union.
You will be eligible for restructuring protection under the new system if
- your contract is terminated on financial and production-related grounds on or after 1 January 2023,
- you have reached the age of 55 by your termination date,
- you have been employed by the same employer for at least five years before your termination, and
- you sign up as a job-seeker with the TE Office no later than 60 days after your termination.
Please note that the time of termination refers to the date on which you were given notice of your termination. If you have a long notice period, you may therefore need to sign up with the TE Office even before your unemployment begins.
Restructuring protection allowance
The restructuring protection allowance is equivalent to one month’s salary, and it is calculated taking into account your earnings during the 12 calendar months preceding your termination. For the purpose of calculating your allowance, your ‘earnings’ include all amounts paid to you by your employer based on your employment contract, whether in the form of a salary or otherwise. Your restructuring protection allowance will be this total divided by 12.
You do not have to be unemployed to qualify for a restructuring protection allowance. You will receive your allowance even if you find work with a new employer straight away. If, on the other hand, circumstances change during your notice period and you end up staying with the same employer, you will not be eligible for the allowance.
The restructuring protection allowance does not affect your unemployment security.
Applying for a restructuring protection allowance
The restructuring protection allowance is paid by unemployment funds and Kela. Members of unemployment funds apply for the allowance through their unemployment fund, and others apply for it from Kela. Your unemployment fund will pay your restructuring protection allowance as long as you were a member of the fund on the date on which your contract was terminated, even if you had not been a member for long enough to qualify for an earnings-related allowance. The amount of the allowance is the same regardless of whether it is paid by an unemployment fund or Kela.
As soon as the new restructuring protection package enters into force on 1 January 2023, you will be able to find an application form for the restructuring protection allowance on our website under
Forms. Fill in the application form and send it to us. You can submit your application online using our eService or send it by post with your supporting documents.
Please note that you must apply for your allowance within three months of the end of your employment or you will lose your entitlement.
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