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Agreement concerning extension of work careers in Finland

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Policies for the labour market confederations' agreement concerning the extension of work careers. …

Policies for the labour market confederations' agreement concerning the extension of work careers.
Finnish labour market confederations


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  • 1. 1 22.3.2012POLICIES FOR THE LABOUR MARKET CONFEDERATIONS’ AGREEMENTCONCERNING THE EXTENSION OF WORK CAREERS1. Work generates well-beingAs the population is ageing, the process of safeguarding the Finnish welfare societywill require competitive companies, a higher employment rate, and longer workcareers. The extension of work careers is one of the most effective solutions tonarrow the sustainability gap of the public economy. In accordance with thepreliminary assessment conducted by the Ministry of Finance, extending the averagework career by one year would reduce the sustainability gap, which is about 5 percent of the GDP, by 1 percentage unit or approximately 2 billion euro.Correspondingly, an average extension of two years would then mean that nearly 5billion less would be sought through the increase of taxes or cuts in public spending.The higher the employment rate and the longer and more continuous the workcareers are, the less we will have need for age-related expenditures.For the individual, a longer work career signifies better pension security.The labour market confederations have agreed upon and committed to the followingpolicies as a means of extending work careers and continuing the process initiated bythe 2005 pension reform.2. Extending work careers2.1 The working life groups proposals for the extension of work careersAs assigned, the working life group set up by the labour market confederations hasclarified policies, other than pension policies, that will impact on the extension ofcareers. As the basis for their work, the group utilised its previous report (1 February2010) and proposals therein, while also evaluating the success of theirimplementation.As an overall observation, the work group states that many of the proposals havemoved forward, many are undergoing continued preparations and some are alreadybeing considered at the legislative level. Some of the proposals are included in PrimeMinister Jyrki Katainen’s Government Programme, which considers the lengtheningof work careers on a broad scale and echoes the working life group’s aim ofextending work careers at the beginning, middle and end. On the basis of theGovernment Programme, different ministries have already undertaken numerousprojects that concern the development of working life and the lengthening of workcareers.
  • 2. 2Furthermore, the framework agreement of the labour market confederations specifiesseveral follow-up projects aimed at lengthening work careers, such as programmesfor ageing workers and projects aimed at developing competences, theimplementation of which are currently underway.The work group points out, however, that, of the proposals in the group’s previousreport, there has been little progress on those proposals that deal with thedevelopment of adult education, not to mention the proposal concerning the part-timepay supplement. The working life group emphasises the fact that rapid changes inthe operational environment related to working life inevitably place great pressure onthe need for increased competence among the working population. Adult educationshould be developed to provide individuals with the skills and competencies requiredby todays working life.The work group also states that proposals related to the assurance of accessibility tooccupational health care and the provision of occupational health training for doctorsremain unrealised. The pilot project intended to accelerate the health care chain alsonever got underway.The pension negotiation group led by Managing Director Jukka Rantala of theFinnish Centre for Pensions has clarified the pension policy guidelines and measuresrequired for the extension of work careers and the raising of the average age ofretirement in accordance with the aim specified in the Government Programme. Tothis end, the working life group lends its support by making the proposals below. Theintention is to finalise the proposals for implementation, through bipartite or tripartiteco-operation, depending on the content of the project. Projects that require a tripartitepreparation will be launched immediately and, at the same time, receive definitivetimetables. The working life group will continue to work until 31 December 2012 inorder to elaborate the policies presented below as well as other possible proposals tolengthen work careers.2.1.1 Youth employment (labour market confederations, unions, Ministry ofEmployment and the Economy, Ministry of Education and Culture) • The labour market confederations are prepared to seek out new methods to facilitate young peoples entry into working life. The aim is to find job and training opportunities for young people by combining education and on-the- job training. Any increase in the apprenticeship training programmes for young people would require that the training compensation payable to employers be graded so that the compensation amount would be greatest at the beginning of the training. From the perspective of employers, it is essential that there be some improvement in the support and guidance provided by the educational institutions during the on-the-job training period. The participation of employers in realising the social guarantee for young people can be increased by reducing the administrative work connected with the use of the different systems available. The wage subsidy system for youth (Sanssi card) must be made as simple as possible for employers to use. This is especially important in terms of increasing employment opportunities in small businesses. The labour
  • 3. 3 market confederations will prepare proposals concerning these matters by 30 September 2012. • The labour market confederations encourage their member unions to investigate, within their own fields, ways to facilitate the entry of youth into working life. The aim is to establish agreements concerning the employment of youth by 30 November 2012. • In order to realise the social guarantee for young people and increase the training opportunities for each person under 30 years of age who has only received the basic education, the labour market confederations stress the import of ensuring sufficient resources and education options.As part of Prime Minister Jyrki Katainen’s Government Programme, it was agreedthat, from the beginning of 2013, each person under the age of 25 and every recentgraduate under the age of 30 would be offered work, an internship, or a study,workshop or labour market rehabilitation place within three months of becomingunemployed. Additionally, everyone who completes their comprehensive schooleducation will be guaranteed further education, workshop training or other similaropportunity. As determined under the Government Programme, an additional annualappropriation of 60 million euro will be budgeted to ensure the realisation of thesocial guarantee. The working group preparing the reform has issued the initialphase proposals for the purpose of realising the social guarantee.A lack of education is the key marginalising factor with regard to working life andsociety in general. In addition to those who have, at some point, completed theircomprehensive school education, Finland has 110,000 people aged 20-29 who donot hold any upper secondary level degree. Poor vocational competence significantlyshortens one’s work career. An upper secondary level degree increases theexpected number of working years by six for men and nine for women. Thedifference between having comprehensive schooling and a higher university degreeis 13 years for men and 10 years for women.One important objective of basic education is to awaken young peoples interest intheir own future and to increase their motivation to study. In order to make a smoothtransition from comprehensive schooling to the upper secondary level and fromtraining to working life, we need effective counselling and guidance services, and weneed to eliminate any incentive traps.The labour market confederations emphasise the fact that an effective realisation ofthe social guarantee for young people requires that vocational training and variouspreparatory training forms be reviewed as a whole. Intensifying the collaborationbetween the different models of vocational training could facilitate more flexible,individual educational paths. Apprenticeship training should not be the primary modeof training for those at risk of becoming marginalised. Instead, the efficientinterweaving of basic vocational training, apprenticeship training and competence-based qualifications would shorten the duration of training and free up basicvocational training resources for the use of students who need more guidance andsupport. There is a need for different models that flexibly integrate basic vocationaltraining, workshop activities and apprenticeship training (e.g. 2+1 model).
  • 4. 4The financing system for basic and further vocational training and education must bedeveloped as a whole, and it should encourage a more rapid shift from education toworking life, closer collaboration between the different training arrangements and theprovision of education across each age class.2.1.2 Development of the processes intended to support extended work careersA functional occupational health care system is integral as regards the process ofmaintaining ones ability to work and continue to work. Smooth co-operation betweenoccupational health care and different personnel groups is an essential part of asuccessful occupational health care process.2.1.2.1 Measures related to the earnings-related pension scheme 2.1.2.1.1 Increasing co-operation between pension providers and occupational health care (Ministry of Social Affairs and Health, labour market confederations, earnings-related pension institutions) • The ways in which authorised pension providers might more effectively support the collaborative early intervention activities of the workplace and occupational health care shall be clarified. The aim is to increase the interaction between collaborative occupational health care within the workplace and the expertise of the pension institutions and, thereby, to intervene, at an earlier phase, in cases running the risk of entering the sphere of disability pension. The key focus is on the efficacy of occupational health care and its assessment. The follow-up preparation should focus specifically on the following practical viewpoints: Occupational health care possesses the relevant information about the workplace, its health and work capacity risks, absences due to sickness, and reasons for disability. Together, occupational health care and the workplace pursue to maintain the employees’ work capacity and endeavour to prevent disability while coordinating the treatment and rehabilitation of employees. Pension institutions can provide workplaces with expertise in the assessment of work capacity and vocational rehabilitation. Information and expertise concerning disability pension cases at a particular workplace are accrued within the pension institutions, and this information and expertise should be made available, in an appropriate manner, to the occupational health care providers and the workplace in question. For this purpose, co-operation between the workplace, occupational health care and the authorised pension providers would be advanced through the naming of a specific responsible person for each individual workplace who is highly knowledgeable in both the workplace practices and the current work capacity situation. It would be logical to select an occupational health care professional to serve as the responsible person.
  • 5. 5One basic rule should be that every disability pension application contains thestatement of an occupational health physician. The pension institution shouldalways contact the occupational health care provider if a new pensionapplication that is filed for processing does not contain the statement of anoccupational health physician. Care must also be taken to ensure that thepension application contains the employers description of the pensionapplicant’s work and working conditions. If necessary, the occupationalhealth care provider shall contact the earnings-related pension insurer at anearly enough phase to begin either vocational or medical rehabilitation, if thework capacity of an employee has diminished or there is a threat that he/shemight lose the ability to work. It is essential that occupational health care havethe opportunity to benefit from the expertise of the authorised pension providerswith regard to both prognoses and alternative solutions.The earnings-related pension scheme offers training and education foroccupational health care providers in the assessment of work capacity andvocational rehabilitation. One thing that will also be clarified is whether, forexample, the Finnish Institute of Occupational Health could, upon the request ofa specific workplace, conduct an audit of the quality of occupational health care,with a particular focus on occupational health collaboration with and within theworkplace, and the prevention and treatment of work disability. The qualityassessment criteria would be based on good occupational health care practice.2.1.2.1.2 Acceleration of access to treatment based on work capacity criteria(Ministry of Social Affairs and Health, authorised pension providers, Kela,Ministry of Finance) • In its previous report, the working life group presented that, in co- operation with Kela and under the steering of the Ministry of Social Affairs and Health, authorised pension providers would initiate a pilot project for the purpose of accelerating access to treatment. Specific criteria were to be set on treatment reimbursement. The working life group again proposes this pilot project. Additionally, there will be an examination of equal tax treatment for wage earners regardless of the implementation method used for treatment.The purpose of the pilot project is to clarify whether the accelerated access totreatment results in shorter work disability absences and a reduction in thesickness allowance periods and pension expenses. The receipt of treatmentreimbursement requires that the case fulfil the set criteria and that anassessment has been conducted in co-operation with occupational health carein order to determine the possibilities for the person in question to continue towork.2.1.2.1.3 Game rules for work wellness activities within the earnings-relatedpension scheme (Ministry of Social Affairs and Health, labour marketconfederations, authorised pension providers) • The labour market confederations believe that work wellness activities are an essential aspect of the earnings-related pension scheme.
  • 6. 6 Provisions on work wellness services that clarify their legal position and the use of these services as corporate competitive tools should be prepared for inclusion in the legislation pertaining to earnings-related pensions. The aim of work wellness services is to assist client companies in maintaining the work capacity of their employees and, thereby, to prevent work disability. The purpose is not to replace the employer’s statutory obligations concerning occupational safety and health with work wellness services nor to pay for them using work wellness funding. The objective is for services to be efficiently targeted with regard to the maintenance of work capacity, the risk of work disability and the earnings-related pension scheme. The primary principle for work wellness services is that they be available to all employers. In the future, the impact of the work wellness services provided by the authorised pension providers should be monitored more closely. For this purpose, the basic policies concerning work wellness services shall be approved by the pension insurance company’s board, which shall also monitor the implementation and success of the services. Regulations related to work wellness services should be realised as soon as possible.2.1.2.2. Developing functional rehabilitation processes (Ministry of Social Affairs andHealth, labour market confederations, authorised pension providers, Kela) • Occupational health care shall assume full responsibility for the coordination of rehabilitation. The management of rehabilitation processes will be linked in as a key part of occupational health cares quality management system. This will ensure the timely initiation and systematic implementation of rehabilitation.Workplaces, and also occupational health care providers, are aware of therehabilitation possibilities and alternatives, as well as the related social serviceslegislation, but not sufficiently aware. Rehabilitation is often initiated only after theconventional treatment has not, within a reasonable time span, led to the regaining ofone’s abilities to function and/or work. With this approach, the rehabilitation will,nearly without exception, be initiated too late in terms of its optimal impact.Rehabilitation plans are not always thorough enough, and the drafting of the plansdoes not take into consideration the workplace’s own capabilities to support theimplementation of the plan. Furthermore, the overall coordination of rehabilitation, asit concerns the treatment and the different rehabilitation alternatives and theirproviders, is insufficient. This all leads to a situation in which the process does notprogress smoothly or it is even discontinued entirely.The functionality of the rehabilitation processes should be developed in accordancewith the following guidelines:Occupational health care shall assume responsibility for the coordination of therehabilitation (medical rehabilitation, vocational rehabilitation) as part ofcomprehensive care; the opportunities for this approach have been improved withamendments to the Health Insurance Act (1224/2004) and Occupational Health Care
  • 7. 7Act (1383/2001). Occupational health care possesses basic knowledge of the field aswell as expertise in physiotherapy, but this must be teamed with the expertiseprovided by social insurance, rehabilitation, work psychology and organisationalpsychology specialists. Consultations with these specialists must be included in thereimbursement system utilised by occupational health care.The management of rehabilitation processes shall be linked in as a key part of thequality management system of occupational health care. The opportunity foroccupational health care to request a rehabilitation plan from specialised medicalcare should be arranged, if such a plan has not been drafted in connection with thegeneral treatment. Occupational health care will be able to initiate predeterminedrehabilitation procedures based on its own independent decision for a set maximumperiod of time (e.g. work trial in one’s own workplace). Kela’s work capacitycounsellors can be consulted for the purpose of planning the rehabilitation process.The rehabilitation process will take into account the employee’s job and theconditions at the workplace. The communications between the workplace andrehabilitation provider shall continue uninterrupted throughout the process. Possiblesuggestions concerning the modification of the job will be drafted in such a manneras can be implemented within the everyday operations of the workplace. The task ofoccupational health care will be, when necessary, to utilise experts to improveworkplace awareness of the support methods that are available for the purpose ofencouraging the employment of persons with disabilities. The forms used to draw uprehabilitation plans (e.g. ‘B’ medical statement) will be modified to include sectionsfor information about consultation with the appropriate co-operative actors.2.1.2.3. Developing occupational health care (Ministry of Social Affairs and Health,labour market confederations, Finnish Institute of Occupational Health, Ministry ofEducation and Culture) 2.1.2.3.1 Improving the availability of occupational health care services • Different methods shall be employed to improve the availability of occupational health care services for small workplaces. All employees shall be granted access to occupational health care services regardless of field or specific work task. The possibility to encourage work wellness activities at small workplaces with the help of occupational health care reimbursement practices or insurance premiums shall be clarified. The Ministry of Social Affairs and Health is drafting a proposition for the improvement of the availability of occupational health care for small businesses, by means of, for example, purchase pools. Based on good practical examples, the matter can also be advanced so that companies would require their subcontractors to arrange for proper occupational health care. This principle would be entered into the Act on the Contractor’s Obligations and Liability when Work is Contracted Out (1233/2006). There is also reason to consider developing incentives for work capacity activities at small businesses by means of, for example, the reimbursement system used in occupational health care or pension insurance. For the purpose of increasing acquisition skills, there would
  • 8. 8 also be a need for field-specific occupational health care acquisition guides for workplaces of different sizes. • The possibilities to introduce the use of a monitoring tool (“chip card”) that contains an employee’s health information shall be clarified. This system would facilitate the arrangement and monitoring of occupational health care, in particular, for those employed in short or fixed-term employments. The purpose of the proposals presented by the work group in their first report was to clarify the possibility of taking such a card into use in connection with the National Archive of Electronic Health Records (KanTa). It was also deemed necessary to investigate other options for the implementation of such a monitoring tool, such as through collaboration with the Finnish Innovation Fund Sitra. 2.1.2.3.2 Developing occupational health care competence • In their previous report, the working life group suggested increasing the knowledge of working life, work capacity assessment and social insurance as part of all basic training for health care personnel as a means of developing occupational health care competence. Furthermore, it was proposed that all universities providing medical training establish full-time professorships in the field of occupational health care. The working life group continues to support this proposal. Additionally, it proposes that all universities of applied sciences should continue to provide sufficient training for occupational health nurses. The labour market parties shall issue a statement on these matters to be presented to the universities and universities of applied sciences.2.1.2.4. Occupational health co-operationOccupational health collaboration within the workplace will efficiently bring about thedesired impact with regard to the promotion of work capacity and prevention of workdisability. Occupational health collaboration requires the commitment of the entireorganisation and the engagement of all personnel groups. In order to improve theimpact of occupational health co-operation, the specific needs concerning all worktasks and their circumstances must be identified.2.1.3. Promoting work wellness in the workplace2.1.3.1. Programmes for ageing workers and individual career plans (labour marketconfederations, unions) • According to the framework agreement, the labour market parties shall draft a common model for the initiation of programmes for ageing workers to be applicable in all workplaces. • The workplaces can ensure the application of the programmes on the individual level in the form of, for example, individualised career plans.
  • 9. 9The labour market parties are currently drafting a general model for the programmesfor ageing workers. The elements of the workplace model include, among otherthings, flexible working hour arrangements, health examination programmes andtraining activities aimed at senior employees. The programme for ageing workers willtouch upon all age groups.In addition to the programme for ageing workers, a personal appraisal interview willbe held with each ageing employee (upon reaching the age of 58-60 as a minimum)in order to determine the actions that will support the lengthening of that individual’swork career. The outcome of the discussion will serve as the foundation for anindividualised model for progression (e.g. career plan). The plan would take intoconsideration, for example, the development needs related to the specific job (workorganisation, working hours, etc.), the ability to continue in one’s career, and possibleknowledge transfer. Parties to the field-specific collective labour and civil servant agreements shall clarify how to promote the application of the programmes for ageing workers and the drafting of individualised career plans.2.1.3.2. Work wellness tools and operational models (labour market confederations,unions) • The labour market confederations recommend that the member unions survey, within their own fields, the current situation as concerns work wellness activities and on that basis, draw up a general procedural programme. The labour market confederations will draft a general checklist of issues to consider.For example, the parties to the collective agreements within the technology industryhave, through collaboration, advanced the work wellness of personnel in companiesin the field, the upkeep of the working capacity of employees of all ages and bettercontrol of sickness absences. To this end, the technology industry workplaces havedeveloped, as a pilot project, applicable tools and operational models that enable theworkplaces to survey the current state of work wellness and to identify the primaryareas for development.2.1.4. Partial disability pensions and a continued work career (labour marketconfederations, Ministry of Social Affairs and Health, Ministry of Employment and theEconomy, Kela)The following actions shall be considered to see how they could be utilised in order topromote continued work careers and part-time employment: • The applicable age limit for partial disability pension and employment pension rehabilitation shall be raised from 63 to 68 for those within the earnings-related pension scheme. • There shall be a possibility to receive partial disability pension within the national pension scheme as well.
  • 10. 10Within the earnings-related pension scheme, it is possible to grant disability pensionas a full or partial pension, depending on the degree of remaining work capacity. Atthe end of 2010, there were 20,800 persons receiving partial disability pension, whichsignifies 10 per cent of all disability pension recipients.Approximately 60 per cent of those receiving partial disability pension are still activelyworking. The employment opportunities for those on partial disability pension shall beimproved.Within the earnings-related pension scheme, it is currently only possible to receivepartial disability pension until the age of 63. The amendments to the partial disabilitypension constraints are intended to spur interest in lengthening one’s work career asmade possible by the flexible pension age.It is estimated that the opportunity to receive Kela’s partial disability pension will alsoincrease the employment opportunities, in particular, for young people who arereceiving disability pension due to mental illnesses or intellectual disabilities.Further possible details related to the determination of such pensions will bediscussed separately by the working group on pensions.2.1.5. Following up on the Masto project (labour market confederations, Centre forOccupational Safety, Ministry of Social Affairs and Health)The Ministry of Social Affairs and Health launched the Masto project for the years2008-2011 as a way to promote practices to increase wellness at work, to preventthe onset of depression, to provide good treatment and rehabilitation to help thosesuffering from depression to cope at work and return to work, and to reduce cases ofwork disability based on depression. • The realisation of the Masto proposals shall be safeguarded. The implementation of the recommended measures should be monitored closely on an annual basis. On the basis of the follow-up, the implementation of the recommendations shall be further supported, if they do not seem to be moving forward as planned. • Labour market parties shall undertake the enactment of practical measures within the Centre for Occupational Safety (Meeting place for work wellness) in order to ensure the realisation of the following Masto proposals:Workplace game rules to support work capacity • in the workplace, the introduction and permanent integration of operational models aimed at early intervention and assistance for those returning to work; follow-up of use and functionality (follow-up studies by the Finnish Institute of Occupational Health, follow-up conducted by Keva and authorised pension providers)Training for managerial and occupational health and safety personnel • the training will utilise materials produced as part of the Masto project
  • 11. 11 • Management development network; work wellness cardOccupational health and safety to support the development of work conditions thatpromote mental health • psychosocial work factors will be clarified in all fields as part of workplace risk assessment and the workplace surveys conducted by occupational health care2.2 The labour market confederations’ principal policies for continuing thepension scheme reformThe labour market parties commit to the following negotiation procedure concerninglong-term pension policies and the reform of the earnings-related pension scheme.Prime Minister Jyrki Katainen’s Government Programme includes an agreement onthe intended increase of the average pension age to at least 62.4 years by the year2025. The labour market organisations approved this goal already in spring 2009. Thejoint objective of this Government and the organisations is the central focus of thereform of the earnings-related pension scheme. The reform must take care to ensurethe financing of the earnings-related pension scheme, sufficient pension security andinter-generational justice.The European Commission has urged Finland to evaluate its earnings-relatedpension scheme and pensionable age with regard to an increasing life expectancy.The increased life expectancy was taken into account in the form of a life expectancycoefficient for the purposes of the earnings-related pension reform in 2005. To date,the life expectancy coefficient has functioned as anticipated.2.2.1. A high level survey will be carried out by the end of 2013 to serve as thefoundation for the reform work on the earnings-related pension scheme. As part of thesurvey, there will be an assessment of the impact of the reform realised in 2005 andthe necessity for additional measures in order to ensure that the pension schemeremains economically and socially sustainable as the life expectancy continues toincrease. The organisations have requested that Director General Jukka Pekkarinenfrom the Ministry of Finance assume the role of Chairman for the survey work group.In the course of the upcoming earnings-related pension reform based on the survey, adecision will be made concerning the way in which the increase in life expectancyshould be taken into account in the development of the earnings-related pensionscheme. The life expectancy of 62-year-olds will be used as the starting point for theanalysis, unless otherwise agreed. As the groundwork for legislation, the labourmarket parties will negotiate on the terms of the earnings-related pension reform. Thematters of negotiation will include the age structure for the pension scheme, earlypension schemes, the projected pensionable service for disability pension, survivors’pension, the deduction of the employee’s pension contribution from the pensionablesalary, pension accruals and the initiation of accrual, indices and the development ofcontributions designed to secure pension benefits. The negotiations shall becontinued without delay.The pension reform shall enter into force no later than 1 January 2017.
  • 12. 12Pension contributions for the years 2015 and 2016 shall be increased by 0.4percentage units, to be split equally between the employer and employee.The solution concerning the development of contributions for the coming years will bemade at the same time as the solution concerning the benefits and related age limitsspecified in Section 2.2.1. A long-term stable payment level will be achieved for thepension contribution by means of as uniform a development as possible and thecurrent division of contribution. The goal is to achieve a stable situation by 2025.If necessitated by economic development, the labour market confederations shallreassess the timetable for these increases.2.2.2 The financing of the earnings-related pensions for the public sector shall besafeguarded on the basis of surveys concerning the financing options. The policysolutions will be settled in connection with the state budget framework discussion.3. Reforms entering into force as of the beginning of 2014-2015.3.1 Early old-age pension will be eliminated. At the same time, the status of thosereceiving a continued unemployment allowance will be clarified with regard to earlyold-age pension.3.2 Part-time pensionThe minimum age limit for part-time pension will be raised to 61 for those born in orafter 1954.3.3 The efficiency of the earnings-related pension scheme will be improved byclarifying, among other issues, company-specific administrative costs, the age rangefor funding the old-age pension component, solvency norms and returns oninvestments.3.4 Improved incentive nature and structural simplification of unemployment securityThe unemployment security system shall be developed in a direction that encouragesactivity. The benefit levels of the unemployment security will be reduced to two: thebasic benefit (according to chapter 6, section 2.1 of the Unemployment Security Act1290/2002) and the benefit paid during the period the person is involved in an activemeasure. The daily allowance paid during a period of involvement in an activemeasure is determined in accordance with the current earnings-related component ofchange security (chapter 6, section 2.3 of the same act) Active measures refer toservices that promote employment as specified by the Unemployment Security Act.The earnings-related component of change security is paid upon unemployment for amaximum of 90 days to a jobseeker who has been working, prior to their loss of job,for a minimum of 20 years (chapter 6, section 3a of the same act).If an unemployed jobseeker fails through his/her own fault to initiate, within the first250 days of the unemployment allowance period, an active measure of no less than 40
  • 13. 13days as specified in the employment plan, the maximum duration of the unemploymentallowance period will be reduced by 100 days.The maximum duration of the earnings-related allowance will be dependent on thelength of ones work history. The maximum duration will be 400 days for a person whohas been working for less than 3 years. Following a work history of more than threeyears, the maximum duration will be 500 days. The refusal to participate in any of theactive measures offered will reduce the maximum duration in both cases.The condition regarding previous employment will be six months for everyone.Changes will be implemented as part of the overall unemployment security reformagreed upon in the framework agreement. The changes will enter into force on 1January 2014, and they will be applied to any unemployment periods beginning afterthe date on which the legislation enters into force. The daily allowance payable duringthe period of active measures will be determined in accordance with the newprovisions for any measure beginning on or after 1 January 2014. The changes willundergo tripartite preparation by the working group of the Ministry of Social Affairs andHealth.3.5 In order to achieve the impact required by the reform, the age limit for the right to acontinued unemployment allowance will be increased by one year for those born in orafter 1957.The change will enter into force, in practice, in 2015.The following provisional content will be included in the Act on the Public EmploymentService (1295/2002): Unemployed jobseekers who are aged 60 or older have the right,prior to the end of the maximum period of earnings-related unemployment allowance,to be placed in supported work or other active measure arranged by the employmentauthorities until such a time as the condition regarding previous employment has againbeen met. In these cases, the daily allowance is determined on the basis of the wagesfrom an earlier employment.This solution requires the amendment of the act in question and an agreementregarding how the State’s share of the costs of such arrangements would be realised.The details of the proposal will be settled separately.For ageing jobseekers, a work capacity assessment will be carried out, if necessary, inconnection with the drafting of the employment plan.Those born in 1957 will be guaranteed an extended period of 600 days of earnings-related unemployment security during the transition phase.The employer’s deductible for the additional days will be changed so that themaximum percentage of the deductible will be raised from 80% to 90%. The increasein the deductible for continued unemployment allowance concerns situations in whichthe employer gives notice to an employee born in 1957 or later.

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