Transition security for employees aged 55 and older
Employees covered by transition security are entitled to:
- a transition security allowance equal to 1 month’s pay
- transition security training lasting up to 6 months, the value of which is equal to up to 2 months’ pay
- five additional days of employment leave
To be eligible for transition security, you need to
- have been dismissed due to production-related or financial reasons (termination of a fixed-term job does not meet the requirement)
- be 55 years old at the time of dismissal
- have worked for the same employer for at least 5 years at the time of dismissal
- have registered as a jobseeker with the TE Office within 60 days of the dismissal (Please note that the notice period may be longer than 60 days.)
The date of dismissal is the date on which you received your notice of termination of employment. Therefore, if the notice period is long, you must register with the TE Office before the start of unemployment.
The transition security allowance is paid by the unemployment fund. Transition security allowance must be applied for no later than 3 months after the end of the employment relationship.
As with earnings-related unemployment allowance, transition security allowance does not have a membership or employment condition. This means that the allowance is paid by your own unemployment fund even if you have joined the fund just before your dismissal.
The amount of transition security allowance is based on wages paid by the dismissing employer in the previous 12 months. Wages paid by other employers are not included in the calculation. Unpaid absences are not taken into account in the calculation of earned income.
You can receive the transition security allowance even if you are immediately employed by another employer.
You are not entitled to a transition security allowance if:
- your employer cancels the dismissal on production-related or financial grounds and you continue to work for the same employer
- your employment relationship is terminated during the notice period for the dismissal on production-related or financial grounds
- you resign during the notice period
- your employer declares bankruptcy
How to apply for transition security allowance
- register as a jobseeker at the TE Office within 60 days of your dismissal
- send an application for transition security allowance to the fund no later than 3 months after the end of the employment relationship.
- send tax card from the tax authorities for the allowance
- no attachments are needed with the application
Please note that the date of dismissal is different from the end date of the employment relationship.
Transition security training is organised by the TE Office and ELY Centre. Attending the training is voluntary and you can refuse it without losing your unemployment security. More information on the training is available from the TE Office and ELY Centres.
Transition training allowance corresponds to a maximum of 2 months' pay. The amount of transition training allowance is based on wages paid by the dismissing employer in the previous 12 months. Wages paid by other employers are not included in the calculation. Unpaid absences are not taken into account in the calculation of earned income.
The training must increase professional skills or support self-employment and promote the rapid re-employment of the dismissed person.
More information about transition security training is provided by the TE Office and ELY Centre.