Change security for jobseekers and employers

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1 Change security for jobseekers and employers te-services.fi

2 Employment and change security Employment and change security improves the employee's position in situations where they are in danger of being dismissed or have been dismissed for financial or production-related reasons. Change security also applies to fixed-term employees and those who are laid off for a period of 180 days or to those who have been laid off. This enhances the co-operation between employees, employers and Employment and Economic Development Offices (TE Offices). Change security includes ffpaid leave for dismissed employees to look for a new job ffsupplementary unemployment allowance or the increase due to an extensive employment history paid while participating in services that promote employment ffemployment plan. Change security is jointly provided by the employer, employee and TE Office. The employer's notification and negotiation obligations have also been enhanced by change security. The TE Office provides changes security through these improved services. 2 CHANGE SECURITY FOR JOBSEEKERS AND EMPLOYERS I TE-SERVICES

3 JOB APPLICANT Change security supports employees in dismissal situations Employment and change security increases employee security in dismissal situations and in situations involving long-term layoffs, it provides support in jobseeking and it helps a person find new employment quickly. Change security increases employee opportunities to participate in activities that promote employment and also improve and maintain their professional skills. Employment plan An employment plan improves the employee's chances of finding employment, such as through training. Employment plans are made together with a TE Office expert. It includes an analysis of the employee's situation, a plan specifying independent jobseeking and supporting the jobseeking process, and TE Office services, which are used to help the jobseeker quickly find new, longterm employment. A jobseeker may be paid the supplementary unemployment allowance or the increase due to an extensive employment history while participating in services that promote employment. Employees are entitled to paid leave during the notice period Every employee dismissed for financial or production-related reasons is entitled to paid leave during the notice period. The length of the paid leave is 5-20 days, which is determined based on the duration of the employment and the length of the notice period. Employees can use the leave to draft an employment plan or participate in the activities specified in the employment plan, such as training. Dismissed employees are also entitled to paid leave when seeking work independently or with assistance from the TE Office, going to a job interview or participating in re-employment coaching. The leave must not significantly inconvenience the employer, which must be notified of the leave well in advance. Paid leave does not apply to employees who have been laid off or are in fixed-term employment agreements, as their employment will end without a notice period. Employees are not entitled to paid leave if the employment agreement ends due to the employer declaring bankruptcy or as a result of their death. For more information on the supplementary unemployment allowance or the increase due to an extensive employment history please contact your unemployment fund or Kela. CHANGE SECURITY FOR JOBSEEKERS AND EMPLOYERS I TE-SERVICES 3

4 EMPLOYER Employer obligation to notify and inform The employer is obligated to inform employees dismissed for financial and productionrelated reasons of the services offered by TE Offices for dismissal situations. The employer must ensure that the employee receives sufficient, accurate information on change security and how it works. The employer will inform the employee being dismissed of their entitlement to an employment plan in accordance with the Act on the Public Employment Service as well as to an increased unemployment allowance (i.e. payment of the supplementary unemployment allowance or the increase due to an extensive employment history), as stipulated in the Act on Unemployment Security, during the employee's participation in services that promote employment. Before entering co-operation negotiations, the employer must provide the employee representative with a written negotiation proposal and an estimate of the extent of dismissals as well as a schedule of the measures to be taken. This information is also given to the TE Office. The employer must notify the TE Office of any layoffs if they apply to 10 or more employees. It is the responsibility of the employer to inform the TE Office immediately of dismissals if the dismissals will affect 10 employees or more. The employer must present the TE Office with the number of dismissals due to occur, the profession or work duties of the employees, as well as information regarding the date of the dismissals. This way the support and employment planning for the laid off employees can be carried out more quickly. Employer action plan for promoting employment In the change security scheme, employers have a greater obligation to engage in negotiations when reducing the number of employees. The employer must provide an employee representative with an action plan proposal for promoting employment at the beginning of co-operation negotiations. Action plans are always made when the threat of dismissal will affect 10 or more employees. The plan specifies negotiation times and procedures and the use of planned TE Office services as well as how the employer will help the employees find jobs and educational/training opportunities. The final action plan is drafted together with the employees as part of the co-operation negotiations. For dismissals affecting less than 10 employees, the employer must present at the cooperation negotiations the principles to be used in helping the affected employees find new employment or training as well as public employment services. During co-operation negotiations concerning dismissals, any changes necessary must be made to the personnel and training plan, as specified in the Act on Co-operation within Undertakings. The purpose of this is to 4 CHANGE SECURITY FOR JOBSEEKERS AND EMPLOYERS I TE-SERVICES

5 determine whether dismissals and any operational restructuring will result in changes in the job assignments and training needs of the remaining employees. Employers not under the negotiation obligation stipulated in the Act on Co-operation within Undertakings, shall still be obligated to inform employees of the reasons for the termination employment and alternative options, as well as TE services offered by the TE Office. TE OFFICE The employer must ensure that adequate information on change security is provided. Change security is provided for by the Employment and Economic Development Office TE Offices provide information on employment and change security and also advise and assist employers and employees in implementing it. TE Office have change security advisors who oversee TE Office services in change security situations. When an employer has notified the TE Office that a co-operation negotiation has been initiated, the TE Office will immediately contact the employer. In co-operation with the employer and employee representative, the TE Office will investigate the opportunities presented by TE Office services in dismiss- al situations, assist in drafting an employer action plan or equivalent principles, and agree on the provision of services and their arrangements. Change security measures also include personnel reductions due to financial or production-related reasons that involve only a few employees. TE Offices offer various services for change security situations, including: ffinfo sessions for employees ffjob search services ffemployment services fflabour market training ffwork trials ffentrepreneurship advice and support for entrepreneurs starting out ffother services for the development of professional skills. TE Offices can also provide the travel expense and moving cost allowance to to jobseekers who are unemployed. The allowance covers travel expenses for return trips within Finland to job interviews or employment agreement negotiations, provided that the employment in question lasts no less than two weeks and the average number of working hours is no less than 18 hours a week. A requirement for receiving the travel expense and moving cost allowance is that the compensation for expenses is appropriate to the availability of labour and the employment of unemployed persons. CHANGE SECURITY FOR JOBSEEKERS AND EMPLOYERS I TE-SERVICES 5

6 The moving cost allowance is available to jobseekers who are unemployed, whose employment has been terminated or whose fixed-term employment is about to end. The allowance is used to pay for the costs of moving personal property, provided that the jobseeker is moving to a job that will last for no less than six months and whose average number of working hours is no less than 18 hours a week. A prerequisite for the moving cost allowance is that the job is located within Finland outside the jobseeker's commuting area and that the move is made within six months of the start date of employment. Key acts applicable to change security ffemployment Contracts Act (55/2001) ffact on Co-operation within Undertakings (334/2007) ffact on the Public Employment Service (916/2012) ffact on Unemployment Security (1290/2002) These acts can be found at the Finlex website, at Further information Social Insurance Institution of Finland Federation of Unemployment Insurance Funds in Finland Ministry of Employment and the Economy Ministry of Social Affairs and Health AKAVA Confederation of Unions for Academic Professionals in Finland EK Confederation of Finnish Industries KiSV Commission for Church Employers KT Commission for Local Authority Employers SAK Central Organisation of Finnish Trade Unions STTK Finnish Confederation of Salaried Employees VTML State Employer's Office CHANGE SECURITY FOR JOBSEEKERS AND EMPLOYERS I TE-SERVICES

7

8 National Telephone Service JOBLINE change security advice - advice on services provided by TE Offices - advice on the use of online services - directiing customers to the right services Advice given in Russian Русскоязычная консультационная служба Calls will be charged based on the client's own operator charges. te-services.fi TE01 en 8/2014

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