Support if you lose your job

Transcription

1 Support if you lose your job 1

2 Contents If you lose your job 3 Support if you lose your job 4 Compensation from your unemployment insurance fund 5 Special agreements give you extra protection 8 Omställningsavtalet, TRR 9 Omställningsavtalet, TRS 11 Salary if your employer becomes insolvent 13 Other insurance cover if you lose your job 13 Addresses and phone numbers 15 2

3 If you lose your job This booklet is about the support you can get if you lose your job and the criteria you have to meet to be eligible for it. If you are unemployed, you can get help through statutory unemployment insurance and through the special agreements PTK has entered into with some employer organisations (see page 7). Statutory unemployment insurance has two components basic benefi t and voluntary income-related benefi t. The career readjustment agreements with Trygghetsrådet TRR and Trygghetsrådet TRS also enable you to access personal advice, support and guidance to help you fi nd a new job more easily. The agreements also supplement the statutory compensation by paying out severance compensation. If you would like to know more, please contact your union. 3

4 Support if you lose your job If you become unemployed, you can receive compensation from two places: fi rstly from your statutory unemployment insurance and secondly through the special agreements which PTK has entered into with some employer organisations. To receive compensation, you and your employer must both fulfi l certain criteria. Read more about this later in this booklet. Summary of support if you lose your job Unemployment benefit from an unemployment insurance fund (a-kassa) income-related unemployment benefi t (a-kassa members) basic benefi t (not a member of an a-kassa fund or not a member for long enough) Payments through the career readjustment agreements between employer organisations and PTK Severance compensation Salary top-up Personal advice Individual fi nancial initiatives for training, work experience, starting a business, etc. Membership benefits Some unions have additional insurance schemes 4

5 Compensation from your unemployment insurance fund Most unemployment insurance funds were set up by unions. Today there are 31 unemployment insurance funds in Sweden. Normally it is your work or sector that decides which unemployment insurance fund you are eligible to join. There is also a supplementary unemployment insurance fund Alfa-kassan which does not require professional affi liation. Payments from the unemployment insurance fund consist of two parts: basic benefi t and voluntary income-related benefi t. If you fulfi l the criteria for receiving benefi t through the special agreements established between PTK and the employers (see page 7), you can receive these on top of your benefi t from your unemployment insurance fund in some cases. Basic benefit The basic benefi t applies if you are not a member of any unemployment insurance fund or have not been a member for long enough but fulfi l an employment criterion. Basic benefi t cannot be paid out until you have reached the age of 20. If you are not a member of an unemployment insurance fund, your unemployment benefi t will be paid out from the Alfa-kassa fund. Voluntary income-related benefit Voluntary income-related benefi t is paid out if you are a member of an unemployment insurance fund and fulfi l a membership criterion and an employment criterion while your membership is still running. Employment criterion You fulfi l the employment criterion if, during the previous 12-month period you have worked for at least six months for at least 80 hours each month or if you have worked at least 480 hours during a consecutive period of six calendar months. You must have worked at least 50 hours in each month. Membership criterion To fulfi l this criterion, you must have been a member of an unemployment insurance fund for at least 12 months without interruption. For both basic benefi t and income-related benefi t, you also must fulfi l the basic criterion. This means mainly that you must be available in the job market. For example, you must be registered with the Swedish Public Employment Service (arbetsförmedlingen), actively look for work and be willing to take a suitable job that is found for you. 5

6 How long do you receive payments from your unemployment insurance fund? If you fulfi l the criteria for the right to unemployment benefi t, you will receive benefi t for 300 days. If you have children under the age of 18, you will receive unemployment benefi t for an additional 150 days. The benefi t is paid out as a daily allowance for a maximum of fi ve days per week. The fi rst seven days that you are unemployed are counted as qualifying days for which you receive no payments. To receive additional payments from the unemployment insurance fund after the 300 days, you need to fulfi l the employment criterion again. This will be examined by your unemployment insurance fund. Amount you receive from your unemployment insurance fund If you are entitled to the basic unemployment benefi t, you receive what is known as the basic amount. The basic amount is SEK 320 per day if you have been working full-time. If you have been working part-time, the basic amount is reduced proportionally. If, for example, you have been working half-time, your basic amount will be SEK 160 per day. If you are entitled to income-related benefi t, you will receive payments that are in proportion to your salary. This benefi t is a maximum of 80% of your previous salary for the fi rst 200 days. For days , your benefi t is 70% of your salary. The highest amount you can receive is SEK 680 per day. You receive this if you earned SEK 18,700 per month or more. The lowest amount you can receive is SEK 320 per day if you have worked full-time. Example Johan earns SEK 17,500 per month Johan has worked full-time in a call centre for two years. He has been a member of his union s unemployment insurance fund for all this time. Johan is given notice on 1 January. He becomes unemployed on 1 March and the same day registers with the Employment Service as a job seeker. He also applies for unemployment benefi t from his unemployment insurance fund. Benefit from unemployment insurance fund After a seven-day qualifying period, Johan receives SEK 636 per day in unemployment benefi t for the fi rst 200 days. He receives a daily allowance for a maximum of fi ve days per week. For days he receives SEK 557 per day. Emily earns SEK 26,000 per month Emily has worked full-time in sales for fi ve years. She has been a member of her union s unemployment insurance fund for all this time. Emily is given notice on 1 January. She becomes unemployed on 2 July. She registers as a job seeker with the Employment Service the same day. She also applies for unemployment benefi t from her unemployment insurance fund. Benefit from unemployment insurance fund After a seven-day qualifying period, Emily receives SEK 680 per day in unemployment benefi t, which is equivalent to 58% of her previous salary. She receives a daily allowance for a maximum of fi ve days a week and for a maximum of 300 days. 6

7 Payments through special agreements If you earn more than SEK 18,700 per month, you do not receive 80% of your salary in benefi t from your unemployment insurance fund (compare the Emily example on page 5). However, through special agreements between PTK and employers organisations, the total benefi t can nevertheless make up 50% to 70% of your former salary. If you fulfi l the criteria, you may also receive what is known as severance compensation (AGE) If you have a pension and lose your job If you are drawing retirement pension and lose your job, your daily allowance is 65% of your daily income, reduced by 1/260 of your annual pension. If you are only receiving occupational pension, the maximum daily allowance is instead 80% of your daily income, reduced by 1/22 of your monthly pension. Adjustment pension and widow s pension do not reduce your daily allowance. Nor do payments from private pension schemes that you have entered into and paid for yourself. If you resign Unemployment insurance exists to compensate you for a certain proportion of your lost income if you are made unemployed against your will. If you resign, you risk losing the right to unemployment benefi t. You could be excluded from receiving payments for a maximum of 45 days. This period is counted from the fi rst day of unemployment. If you have caused yourself to be dismissed, you may be excluded from unemployment benefi t for a maximum of 60 days. If you are a member of a union, you can always contact your union for help if you are thinking about resigning because you are not happy in your workplace. Visit the Employment Service! To receive benefi t from your unemployment insurance fund, you have to visit the Employment Service and register on the fi rst day that you are unemployed. Qualifying days Each payment period begins with seven qualifying days for which you do not receive any benefi t. Tax and pensions Unemployment benefi t is counted as a taxable income and counts towards your statutory public pension. 7

8 Special agreements give you extra protection Thanks to two career readjustment agreements between some employers organisations and PTK s member unions, there is extra protection for people who are made redundant or run the risk of being made redundant due to work shortages. Work on the basis of these agreements is run by two bodies TRR Trygghetsrådet and Trygghetsrådet TRS. They are funded by fees calculated based on the pay of the employees of the affi liated companies. The fees are invoiced by Fora and paid by the companies. In situations of overstaffi ng and work shortages, you should contact TRR Trygghetsrådet or Trygghetsrådet TRS, depending on which one you belong to, for information and application forms. Your employer will be able to tell you which agreement applies in your workplace. The Confederation of Swedish Enterprise, Idea, Mediaföretagen and KFO (Kooperationens Förhandlingsorganisation) and companies with separate collective agreements within the Confederation of Swedish Enterprise/PTK area. PTK Career readjustment agreement, Omställningsavtalet, TRR Arbetsgivaralliansen, Danscentrum, Glasmästeriförbundet, Länsmuseernas Samorganisation, Målaremästarnas Riksförening, Svensk Industriförening, Svensk Scenkonst and Teatercentrum PTK Career readjustment agreement, Omställningsavtalet, TRS 8

9 Omställningsavtalet, TRR It is TRR Trygghetsrådet which manages activities under the career readjustment agreement Omställningsavtalet, TRR. If you are made redundant due to work shortages, you can receive: individual personal support supplementary income protection severance compensation (AGE). Managers who face redundancies are able to receive: Management support for redundancies. Union representatives who face redundancies are able to receive: training in how to manage and deal with individuals in crisis. TRR can make the company s readjustment process easier by providing information about different ways of tackling the process, discussing the company s situation, the need for measures and how TRR can participate in the process. TRR can also hold seminars on change management for managers or the people who are to handle the redundancies. Individual personal support (career readjustment support) If you are made redundant or run the risk of being made redundant, you will be offered a personal adviser for individual discussions and support in fi nding a new job or starting your own business. You can receive career readjustment support for two years. To receive career readjustment support, you must: have had your employment with a company affi liated to TRR terminated due to a shortage of work or have left on the initiative of your employer due to a shortage of work have worked for more than a year have worked at least 16 hours a week have been permanently employed for at least a year when you were given notice. Your adviser will act as a sounding board, a conversation partner and a guide. With the support of your adviser, you will be able to map your expertise and personality, boost your self-confi dence, and fi nd out more about opportunities available and potential occupations and training paths. In consultation with your adviser, an assessment will also be made of any training and other development initiatives which may have a crucial impact on your continued career. Your adviser will also support you in marketing yourself. To support and to supplement the individual discussions, you can also participate in group activities developed by TRR. In addition, TRR has specialist advisers for managers and for the self-employed. 9

10 TRR also offers you a web-based tool, TRR Online, to help you fi nd a new job. Read more about this service at Severance compensation (AGE) Severance compensation (AGE) from TRR supplements the payments from your unemployment insurance fund. AGE and the daily allowance you receive from your unemployment insurance fund altogether make up approximately 70% of your former salary during the fi rst six months. This will then fall to 50%. AGE is paid out for a limited period. The maximum payment period varies for different age groups. To receive AGE you must: have been made redundant from a company which is affi liated to TRR, due to a shortage of work be at least 40 years old and have been permanently employed at the company for at least fi ve consecutive years have worked at least fi ve hours a week be unemployed and seeking work. If, within fi ve years before being made redundant, the person made redundant was made redundant due to shortage of work by another employer affi liated to TRR Trygghetsrådet, he or she may also count the period of employment with that company. How long is AGE paid out? Age on last date of employment AGE paid out for (max.) months months months For more information see ekonomi (in Swedish) Please note! If your salary is lower than SEK 21,000, your unemployment insurance fund will pay 70% or more of your salary. This means that AGE from TRR will not be paid out. Post-employment cover from TRR If you fi nd a new job but are also made redundant from that job, you can receive what is known as post-employment cover from TRR. This can be paid provided that the new redundancy is due to a shortage of work and is within fi ve years of redundancy from the previous employment. For more information, see (in Swedish) 10

11 Omställningsavtalet, TRS It is Trygghetsrådet TRS which runs activities under the career readjustment agreement Omställningsavtalet, TRS. You are covered by the agreement if your employer is a member of one of the employer organisations listed on page 7. If you are made redundant or if your current employer can no longer offer you a job, you can receive: career readjustment support severance compensation (AGE) insurance cover post-employment cover. Career readjustment support You will be provided with a personal adviser for the period during which you are unemployed and seeking work. Your adviser can pass on information about the job market and training paths and also survey your skills and support you in marketing yourself. TRS can also provide support for further training or help if you want to start your own business. If you had a fi xed-term contract, to receive support you must have been employed with a company affi liated to TRS for at least fi ve years. In the past fi ve years you must also have been employed for a total of 18 months in a sector covered by the TRS agreement. Severance compensation (AGE) Severance compensation supplements the payments from your unemployment insurance fund. To receive AGE you must have worked for at least fi ve consecutive years for your most recent employer or have worked a total of at least fi ve years in a row for different employers (affi liated to TRS) have worked at least eight hours a week be unemployed and seeking work for at least 20% of your previous working hours. TRS pays out a minimum amount to you if you fulfi l the basic criteria for severance compensation, but have a salary level that does not entitle you to severance compensation. The minimum amount per 6-month period is SEK 6,000. AGE compensation together with compensation from your unemployment insurance fund will add up to a certain percentage of your former salary as follows: 11

12 AGE is paid out for the following periods Payment period Level of compensation Payment period Level of compensation age up to 59 age months 75% 6 months 75% 6 months 70% 6 months 70% 6 months 50% 6 months 65% 6 months 50% Total 18 months Total 24 months Maximum amount of compensation is 250,000 SEK before tax. Insurance cover If at work you are covered by ITP, KP or SPV insurance, you can have all or parts of your insurance paid by TRS under special rules. Post-employment cover If you fi nd a new job but are also made redundant from that job, you can receive what is known as post-employment cover from TRS. This can be paid provided that the new redundancy is due to a shortage of work and is within fi ve years of redundancy from the previous employment. More information on TRS can be found at Contact TRS or TRR! If you are made redundant due to a shortage of work and your employer is covered by a career readjustment agreement (Omställningsavtalet, TRS or Omställningsavtalet, TRR), both you and your employer must contact TRR Trygghetsrådet or Trygghetsrådet TRS as soon as possible after you lose your job. TRR or TRS will also assess whether you are entitled to severance compensation (AGE). You can order the forms from the regional offi ce, head offi ce or website of the Trygghetsrådet in question. Addresses and phone numbers are on page 15 of this information. 12

13 Salary if your employer becomes insolvent The state pay guarantee means that your salary will be paid by government funds in the event of corporate restructuring and insolvency. Corporate restructuring Corporate restructuring means that the fi nancial ability of a company to continue trading is assessed and that the company may be allowed to defer payment of debts for a certain period. The main purpose of corporate restructuring is to protect the company from insolvency. In the event of insolvency, which can be the result of unsuccessful corporate restructuring, an inventory is taken of the assets and liabilities that remain in the company. The decision on compensation under the state pay guarantee can be made in conjunction with insolvency and corporate restructuring. The rules for compensation in the event of corporate restructuring act in the same way as in cases of insolvency. There are several important restrictions to the right to compensation. It is important to act quickly because the state pay guarantee only pays your salary for a limited period. If your employer has payment diffi culties and you have not received your salary on time, you should contact your union for help. Other insurance cover if you lose your job As an employee you are covered by a number of insurance policies which enable you to claim if you fall ill or are unable to work for other reasons. The statutory insurance policies form the basis of your insurance cover, which is supplemented by collectively agreed insurance. Sickness insurance Statutory sick pay from your employer is connected to your employment and will therefore cease if you lose your job. Instead you can receive compensation from the Swedish Social Insurance Agency (Försäkringskassan). Sickness benefi t from the Swedish Social Insurance Agency remains at the same level as long as you are available for work. If you become ill while you are unemployed If you become ill while you are unemployed, you must immediately inform the Swedish Social Insurance Agency, Employment Service and unemployment insurance fund. If you are ill and are receiving sickness benefi t, you receive no unemployment benefi t from your unemployment insurance fund. When you are on sick leave you are not using up any days of your unemployment insurance fund entitlement. 13

14 If you become unemployed while on sick leave If you become unemployed while you are receiving sick pay from your employer, the statutory sick pay will be replaced by sickness benefi t from the Swedish Social Insurance Agency. Disability pension under the ITP agreement will continue to be paid out as usual, however. Similarly TGL (occupational group life insurance) will continue to apply. Statutory retirement pension Payments from an unemployment insurance fund are taxable and count towards your pension. This means that you are earning pension entitlement even when you are unemployed, although this will be somewhat lower than when you were working. You pay public pension contributions in the same way as when you were working. The pension contributions are deducted from your benefi t together with preliminary tax. Severance compensation, however, does not count towards your pension. Occupational pension, ITP under collective agreements If you become unemployed, your pension premiums to ITP 1 and ITP 2 stop being paid the month after the end of your notice period. After that you are covered by a post-employment cover period, which means that you are protected by ITP 1 and ITP 2 for three months after you stopped work if you are ill for a long time or die. Occupational group life insurance TGL Occupational group life insurance (TGL) has a general post-employment cover period of three months. If you become unemployed and are looking for work, the post-employment cover period applies for as long as the insurance applied before the end of your employment, however a maximum of 24 months. After this period the general post-employment cover period of three months applies. If you fall ill during the post-employment cover period, the post-employment cover period will be extended by the period during which you are ill. If you receive sickness compensation from the Swedish Social Insurance Agency, TGL applies until you reach retirement age. Who pays ITP premiums if the company is insolvent? If a company becomes insolvent, Collectum might not be able to receive ITP premiums. However, your insurance will continue thanks to a guarantee rule in the ITP plan. If your salary changes, it is therefore important that your employer notifi es Collectum of this as usual. If your employer continues to trade after becoming insolvent, an agreement is usually reached with the receivers as to how your ITP premiums are to be paid to Collectum. 14

15 Advice if you lose your job Contact your union club or union as soon as there is talk of cuts, insolvency or similar. Keep an eye on your salary in the event of insolvency. Your union will help you. If you are made redundant due to a lack of work, send an application to the Trygghetsrådet to which your company is affi liated. Register with the Employment Service no later than the fi rst day you are out of work. Contact your unemployment insurance fund (a-kassa) to apply for benefi t. Addresses and phone numbers TRR Trygghetsrådet which works with career readjustment agreement Omställningsavtalet, TRR Postal address Box , Stockholm Street address Jakobsgatan 6, 4 tr. Phone (AGE) Website info@trr.se Trygghetsrådet TRS which works with the career readjustment agreement Omställningsavtalet, TRS Street and postal address Rehnsgatan 11, 7 tr Stockholm Phone Website trygghetsradet.trs@trs.se Alecta Postal address Stockholm Phone Website Collectum AB Postal address Stockholm Phone Website info@collectum.se 15

16 ABOUT PTK PTK is a partner for 26 member unions with approximately 700,000 members in the private sector. Our work involves negotiations, information and training in several areas, including: Creating security through the collectively agreed insurance schemes ITP, KTP, TGL and TFA. Providing a web-based advisory service offering individual advice on pensions and insurance. Helping members when they lose their jobs through good redundancy programmes. Creating a good work environment in the workplace. Training representatives of our member unions to become active members of company boards. PTKs member unions Akademikerförbundet SSR Civilekonomerna DIK Farmaciförbundet Förbundet Sveriges Arbetsterapeuter (FSA) Journalistförbundet Jusek Kyrkans Akademikerförbund Ledarna Legitimerade Sjukgymnasters Riksförbund (LSR) Lärarförbundet Lärarnas Riksförbund Naturvetarna Svenska Folkhögskolans Lärarförbund (SFHL) Sveriges Arkitekter Sveriges Farmacevtförbund Sveriges Fartygsbefälsförening (SFBF) Sveriges Ingenjörer Sveriges läkarförbund Sveriges Psykologförbund Sveriges Skolledarförbund Sveriges Universitetslärarförbund (SULF) Sveriges Yrkesmusikerförbund (SYMF) Sveriges Veterinärförbund Teaterförbundet Unionen Vårdförbundet. 16