The waiting period is now seven days — holiday compensation will be periodised

08.02.2024 | News, SAVALnews

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Holiday compensation is periodised when it is paid on the basis of a full-time employment relationship that ended on or after 1 January 2024 and lasted more than two weeks.

At the beginning of the year, two changes to unemployment security came into force; as a result, the right to earnings-related unemployment allowance begins later than before. If you have just become unemployed, or are about to become unemployed or laid off, here is what you need to know about the changes.

Holiday compensation will be periodised as from 1 January 2024

If you have holidays that you have not taken at the end of your employment relationship, the holiday compensation paid for them will now postpone the start of your entitlement to earnings-related unemployment allowance. This is referred to as periodisation of holiday compensation. For example, holiday compensation equal to one month’s salary postpones the start of entitlement to earnings-related unemployment allowance by about one month.

Holiday compensation is periodised when it is paid on the basis of a full-time employment relationship that ended on or after 1 January 2024 and lasted more than two weeks. The date of termination of employment refers to the day that is the last day of a fixed-term employment relationship or the last day of the period of notice in accordance with the law or collective labour agreement.

If both holiday compensation and compensation related to termination of employment are paid for the same employment relationship, they are added together and periodised. Read more about the periodisation of compensation for the termination of employment.

The periodisation of holiday compensation does not apply to laid-off employees.

The waiting period lengthened to seven days at the beginning of the year

The waiting period for earnings-related unemployment allowance begins after the periodisation of any holiday compensation or other compensation. The waiting period refers to the period at the beginning of unemployment or lay-off during which earnings-related unemployment allowance is not paid.

Previously, the waiting period was five days. The length of this period is now seven days if the waiting period starts on or after 1 January 2024. In practice, seven days corresponds to about a week and a half, as only five days of waiting can accrue per calendar week.

The waiting period will pass more slowly if you work part-time. Read more about the waiting period.

Apply for daily allowance also during the periodisation and waiting periods

Based on your application, the KOKO Fund will calculate the days included in the waiting period and any periodisation of holiday compensation, so you will not need to take them into account separately when applying for daily allowance.

Register with the TE Office on your first day of unemployment or lay-off at the latest. Keep your job search valid even during the period when you are not entitled to earnings-related unemployment allowance.

Please feel free to contact our customer service if you have any questions. We are happy to help!

 

Text: KOKO fund. The article has been published on KOKO news and on ASIA membership magazine 1/2024.


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