Were you laid off?

You can apply for an earnings-related allowance from your unemployment fund for the duration of full-time or part-time lay-offs. For instructions on how to apply for an earnings-related allowance, see Applying for an earnings-related allowance.

‘Lay-off’ means a suspension of work and wage payments while the employment relationship continues in other respects. Employers need a valid reason to lay off workers, and the lay-off must satisfy the requirements laid down in the Employment Contracts Act.

Workers can be laid off on a full-time or part-time basis. Part-time lay-offs can be implemented by reducing workers’ weekly or daily hours. Workers can also be laid off either on a fixed-term basis or indefinitely.

Workers on a fixed-term contract cannot usually be laid off. However, this rule does not apply if a fixed-term employee is covering for a permanent employee whom the employer would have the right to lay off.

You can also apply for an earnings-related allowance on the basis of circumstances comparable to a lay-off. Circumstances comparable to a lay-off include

• work having to be stopped due to a fire, a natural disaster or another similar event at your workplace that was beyond your or your employer’s control, and,
• in some cases, suspensions of work and wage payments that are stipulated in your employment contract due to the established annual rhythm of your employer’s business.

Make sure to sign up as a job-seeker with the employment authority no later than on the first day of your lay-off. The employment authority will give your unemployment fund a labour policy statement about your circumstances.