Extended transition assistance for employees aged 55 or over
- Service
- Nationwide except the Åland Islands
- Public service
The extended transition assistance is meant for employees aged 55 or over. The purpose of the service is to promote the quick employment of these employees and improve their labour status.
Employers have an obligation under the Employment Contracts Act to inform employees of their right to transition assistance for persons aged 55 or over. The obligation applies to all employers.
The employer’s ...
Do the following
The transition security allowance corresponds on average to one month’s salary. The restructuring protection allowance is paid by the institution paying the unemployment benefit, i.e. an unemployment fund or Kela.
The employee being made redundant applies for the transition security allowance from their unemployment benefit society within three months of the employment relationship ending.
The value of transition security training corresponds to a salary of approximately two months. Participating in the training is voluntary. The dismissing employee agrees on the training with the TE Office. The training must promote quick employment and the employee’s professional or entrepreneurial readiness. The training is provided by the ELY Centre or the TE Office.
It is the employer’s duty to inform the dismissed employee who meets the terms and conditions of their rights.
To whom and on what terms
The employee is entitled to transition assistance for those aged 55 or over if
- they have reached the age of 55 by the date of dismissal,
- their employment contract has been terminated for production-economic reasons on or after 1 January 2023,
- they have worked for the same employer for at least five years with interruptions of no more than 30 days, and
- they have registered as a job seeker in TE Services within 60 days.
Transition assistance for those aged 55 or over includes
- transition security allowance,
- transition security training, and
- employment leave of 5, 15 or 25 days.
Transition assistance for those aged 55 or over is financed through the Employment Fund by means of a restructuring protection fee, which consists of the part of the dismissing employer and a common part. The common part is financed from all employers by increasing the unemployment insurance contribution.
A separate restructuring protection fee applies to the employer if the related conditions are met
- the company terminates an employee for production-economic reasons who has reached the age of 55 and has been employed by the employer at least five years with interruptions of no more than 30 days, and
- if the sum of salaries and wages subject to the company’s unemployment insurance contribution exceeds the minimum limit set for it in the year preceding the employee’s dismissal.