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Transition security is intended to support the employment of people aged 55 or over who have been dismissed. Transition security includes transition security allowance as well as transition security training.
It is the task of the employment authority to determine the general preconditions for transition security and to issue a statement on them for us. We will advise you on how to apply for transition security allowance, issue a decision on it and pay it to you.
The transition security allowance will not reduce your earnings-related daily allowance, nor is it an obstacle to the payment of earnings-related daily allowance.
Transition security
The transition security allowance is paid by the unemployment fund or Kela. Transition security training is procured and arranged by the employment authority.
You can apply for the transition security allowance from the unemployment fund of which you were a member on the day of your dismissal. If you are not a member of an unemployment fund, you should apply for the transition security allowance from Kela.
On average, the transition security is equivalent to one month’s salary. The amount is lower if you have had unpaid absences during the period.
On the other hand, the transition security training allowance is equivalent to up to two months’ salary.
General requirements for the transition security allowance and training
To be entitled to transition allowance, you must be 55 years of age no later than on the date of your dismissal.
Your employment relationship must have ended with dismissal for production-related and financial reasons. This means that you are not entitled to transition security if, for example, your employment relationship is terminated by mutual agreement, even if there are underlying production-related reasons. You will also not be entitled to transition security if your employment relationship ends due to the bankruptcy or corporate restructuring of your employer.
Your employment relationship must have lasted continuously for at least five years before your dismissal.
You must also register as a jobseeker no later than 60 days from the date of termination. Depending on the length of the notice period, it is possible that the registration as a jobseeker must be made even before the end of your employment relationship. It is therefore advisable to register as soon as you have been informed of the termination.
However, unemployment is not a necessary precondition for receiving transition security allowance. You can receive transition security allowance even if you start a new job immediately after the notice period has ended.
Requirements for receiving transition security allowance
General requirements for receiving transition security allowance and training:
you have reached the age of 55 no later than on the date of termination;
your employment relationship has ended with dismissal for production-related and financial reasons;
your employment relationship has lasted for a minimum of five years without interruptions of not more than 30 days in total;
you have registered as a jobseeker within 60 days of the date of termination.
Transition security allowance compensates for the dismissed person’s loss of income
The employment authority examines the preconditions for receiving transition security allowance and issues a statement to us on whether these preconditions are met. The payment of transition security allowance does not require the fulfilment of the time-at-work condition or membership condition.
The transition security allowance will be paid by the unemployment fund of which you were a member on the date of your termination. If you are not a member of an unemployment fund, you may apply for transition security allowance from Kela. Transition security allowance can already be applied for and paid during the notice period, but the application must be submitted no later than within three months of the end of the employment relationship.
In the calculation of transition security, we take into account the wages paid on the basis of the Incomes Register data during the 12 calendar months preceding the date of dismissal. We divide these wages by 12. The transition security allowance thus corresponds to an average salary of one month. The transition security allowance may also be lower than the monthly salary if you have had unpaid absences during the review period, such as lay-off periods.
Transition security allowance is a form of compensation separate from earnings-related daily allowance. It will not reduce earnings-related daily allowance, nor will it prevent us from paying earnings-related daily allowance to you. We will not take transition security allowance into account when we determine the pay on which the earnings-related daily allowance is based.
Applying for the transition security allowance
Register as a jobseeker on Job Market Finland. It is advisable to register as soon as you are informed of the termination. In any event, be sure to register no later than 60 days from the date of termination.
The employment authority procures transition security training, so in matters related to training, please contact the employment authority or municipality directly.
The employment authority will also find out the conditions for the payment of the transition security allowance and provide us with a statement on fulfilment of the conditions, so please respond carefully to the clarifications requested.
Apply for a transition security allowance from us no later than three months after the end of your employment relationship. The application can already be submitted before the end of the notice period. If you are not our member, please apply for the transition security allowance from your own unemployment fund, or Kela if you are not a member of any unemployment fund.
You can download the application in OmaYTK or on our website.
Complete the application form and submit it via OmaYTK.
You can receive a transition security allowance even if you find a new job immediately after the notice period.
Transition security training supports re-employment
The purpose of transition security training is to support rapid re-employment by improving professional skills. Transition security training is procured by the employment authority and must be arranged within three months of the end of the employment relationship. The value of transition security training corresponds to a maximum of two months’ pay, and the training can last no more than six months.
The training must be such that it provides you with enhanced professional skills and supports your re-employment. The employment authority examines whether the training meets the imposed requirements.
Attending transition security training is voluntary for you, and your attendance will not prevent you from receiving unemployment benefit, as long as the other conditions for its payment are met. In addition, there are no sanctions for refusing or dropping out of the training. However, transition security training participants are not entitled to an increase in earnings-related daily allowance the same way as during services promoting employment.
