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Holiday compensation to affect the unemployment benefit as of 1 January 2024

Holiday compensation for full-time work lasting more than two weeks will affect the payment of the unemployment benefit. This means that if the person has unused holidays at the end of the employment relationship, the holiday compensation paid for these will postpone the start of the entitlement to earnings-related allowance. Holiday compensation equal to one month’s pay postpones the start of the entitlement to earnings-related allowance by about one month. The waiting period begins after the period corresponding to the days of unused holiday. 

Holiday compensation will affect the unemployment benefit if the compensation is paid on the basis of full-time work lasting more than two weeks which ended on or after 1 January 2024.

Example: 

You become unemployed from full-time work from 1 June 2024 to 31 July 2024 and are paid holiday compensation for about one month as part of your final pay. Your holiday compensation postpones the start of your benefit, and you do not receive the unemployment benefit for the period from 1 June 2024 to 30 June 2024. After this, there is a seven-day waiting period from 1 July to 9 July 2024. The unemployment benefit will be paid to you from 10 July to 31 July 2024.

 

  • holiday compensation based on the Annual Holidays Act,
  • compensation for carried-over holiday,
  • holiday compensation that has not been paid because the applicant waives their right to holiday compensation, and
  • holiday compensation from the working time bank.

Please note! Only holiday compensation for full-time work lasting more than two weeks will affect the unemployment benefit.  

  • The employer and employees can agree in writing that old holidays will be transferred to a new employment relationship. The employment relationships do not have to follow each other without interruption.
  • If holiday compensation for full-time work is paid in connection with each pay day, the impact on the unemployment benefit of the total combined holiday compensation for the duration of the employment relationship is determined at the end of the employment relationship.
  • A bankrupt employer bankrupt and an insolvency estate are two separate employment relationships. The effect of holiday compensation on the unemployment benefit is determined separately for each employment relationship.
  • If holiday compensation has accrued from full-time and part-time work, only the portion based on full-time work has an impact on the payment of the unemployment benefit.

 

  • a waiting period, or
  • the rejection is related to compensation corresponding to pay during the notice period, if
    • the employee has resigned after being laid off for 200 days or
    • employer has terminated the employment without a notice period  (TSL 6 luku 4 §)