The Government is proposing to change the law on uncompensated periods of unemployment, which are commonly known as suspension periods. The changes would apply to situations where a suspension period is imposed as a result of non-compliance in the context of job search and employment services.
No changes are being proposed for suspension periods in other contexts. Suspension periods that are triggered by resignation, for example, would remain unchanged.
The imposition of a suspension period is always at the discretion of the competent employment authority, and the relevant unemployment fund is notified by means of a labour policy statement. No earnings-related unemployment allowance is paid for the suspension period, and the waiting period that precedes the start of payments does not begin to run until after the suspension period.
What the changes would mean in practice
Under the current rules, the penalties relating to job search and employment services are graduated, and there is no penalty for the first non-compliance.
Under the new rules, the first non-compliance would result in a seven-day suspension period. A second non-compliance could mean a teporary loss of the right to unemployment security. Under the current rules, it takes four non-compliances before the right to unemplyment security can be temporarily taken away.
Non-compliances in the context of job search and employment services
Examples:
- Failure to attend an agreed initial interview or job search interview with the employment authority
- Refusal to have an employment plan drawn up
- Failure to comply with an employment plan (e.g. not applying for jobs or refusing an employment promotion service)
Current penalty system
- First non-compliance in a 12-month period: warning
- Second non-compliance in a 12-month period: 7-day suspension period
- Third non-compliance in a 12-month period: 14-day suspension period
- Fourth non-compliance in a 12-month period: employment condition (the right to employment security is reinstated after 12 weeks of working)
New penalty system
- First non-compliance in a 12-month period: 7-day suspension period
- Second non-compliance in a 12-month period: employment condition (the right to employment security is reinstated after 6 weeks of working)
According to the Government proposal, the new rules would enter into force on 1 January 2026.