Starting up business not to hamper unemployment benefits for 4 months Govt moves to amend Unemployment Security Act

The government on Tuesday proposed to parliament that the Unemployment Security Act should be amended so as to allow the unemployed to start up business and still receive unemployment benefits for four months, said a press release.

“Our aim is to lower the threshold for entrepreneurship and encourage the unemployed to start up business activities. The unemployment security system should support the opportunities of the unemployed to find work, either as employees or entrepreneurs,” Labour Minister Jari Lindström said.

At present, an unemployed person who starts an entrepreneurial activity that lasts for more than two weeks is not eligible for receiving unemployment benefits, which means that the amendment would make it much easier for the unemployed to engage in entrepreneurial activities.

Income from such activities would be taken into account in the amount of the unemployment benefits to be paid.

The government proposal for amending the Unemployment Security Act would also extend the scope of the mobility allowance.

The regional mobility of the unemployed would be supported by extending mobility allowance to part-time employment with average weekly working hours of less than 18. If the other conditions are met, mobility allowance could also be paid if work-related training is required for starting in a new job. Mobility allowance could be higher on the grounds of guardianship obligations and exceptionally long distances.

“The amendments aim for better matching of work and employees on the labour market. People are encouraged to move to find jobs, thus also improving the company’s access to labour,” Lindström said.

The government proposal is related to the 2018 budget proposal and will be discussed in that context. The government’s aim is that the new act will enter into force on 1 January 2018.