Termination of employment during a lay-off

If your employer terminates you during a lay-off

If your employer terminates you while you are laid off, you are entitled to pay during the period of notice as well as any holiday compensation at the end of your employment. If your employer has complied with the 14-day lay-off notice period, 14 days’ worth of wages can be deducted from your compensation. If you were given 14 days or less notice of the lay-off, your employer does not have the right to deduct anything from your pay during the period of notice.

Let the employment authority know as soon as you find out about your termination. It is important to act promptly so that the employment authority has time to give your unemployment fund a labour policy statement about your changed circumstances. Remember to make sure that your job-seeker status remains active with the employment authority after your period of notice as well.

You can apply for an earnings-related allowance for the period of lay-off until the beginning of your period of notice. Please also tell your unemployment fund about your termination in your earnings-related allowance application.

Your unemployment fund cannot pay you an earnings-related allowance for the period of notice, and there is no need to submit an earnings-related allowance application for the period of notice.

When you come to apply for your earnings-related allowance after your period of notice, please enclose with your application

• a copy of the notice of termination
• a copy of your latest payslip, showing your pay during the period of notice and any other compensation you may have received on the basis of your termination and
• if you have been given special compensation on the basis of your termination (e.g. a severance package), a copy of the agreement terminating your employment.

Termination of part-time employment during a lay-off

If you have been laid off from part-time work and your employment is terminated, you may be entitled to an adjusted allowance during the period of notice. If this is the case, you can continue to apply for an earnings-related allowance as before. However, please mention your termination in your application and enclose a copy of the notice of termination.

If you resign after being laid off for 200 days

If you resign after being laid off for at least 200 consecutive days, you are entitled to compensation equivalent to your pay for the period of notice.

If your employer has complied with the 14-day lay-off notice period, they can deduct 14 days’ worth of wages from your compensation. If you were given 14 days or less notice of the lay-off, your employer does not have the right to make any deductions from the compensation payable in lieu of pay during the period of notice.

You cannot be paid an earnings-related allowance for the period during which you are entitled to compensation in lieu of pay during the period of notice.

If you resign, please mention this in your earnings-related allowance application. Enclose with your application a payslip showing the compensation paid to you in lieu of pay for the period of notice and any other compensation you may have received on the basis of your termination.

It is important that you also tell the employment authority about your resignation. Resignation after a prolonged lay-off does not usually trigger a mandatory waiting period. We nevertheless need a labour policy statement about your circumstances from the employment authority, as every case is different and we need to base our decision on a thorough examination of all the circumstances. We recommend that you check your status with the employment authority before making the decision to resign.