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Finland: Legislation concerning disabled people and employment

Equal rights of employment for disabled and handicapped persons have become the most important objective of employment policy. The labour administration has become the instance primarily responsible for the employment of such persons.
The social welfare administration shall supplement the support given by the labour administration for the purpose of employing those disabled persons whom it is most difficult to employ. The central aim is that for the purpose of employing disabled persons support by the social welfare and by the health care administration shall be more closely linked to services provided by the labour administration. Thus, support for employing handicapped persons shall be a common responsibility for the labour administration and the social welfare administration.
Furthermore, the latter shall arrange work for persons who cannot be employed on the basis of employment contracts.


Non-Discrimination Act (21/2004)
The purpose of the Act is to safeguard and foster equality throughout society. Further prohibitions against discrimination are set out in the various Acts related to employment matters, which are applied alongside the provisions of the Non-Discrimination Act.

Act on Rehabilitative Work 1.09.2001
Obliges the municipalities and the employment offices to draw up activation plans for long term unemployed. An activation plan may include measures by the labour administration, as well as socialand health care services arranged by the municipalities. Rehabilitative work is a new social service that the Act obliges the municipalities to arrange.

Social Welfare Act, social insurance legislation and the Employment Act amended from 1 April 2002
New provisions concerning promotion and support of the employment of disabled persons were added to the Social Welfare Act. At the same time the provisions in the old Disability Care Services Act were repealed. The obsolete concept of "sheltered work" was abandoned.
- support for employing disabled persons and for finding jobs shall constitute a new social service to be provided by the municipalities;
- activities for supporting the employment of disabled persons are defined as organization of special rehabilitation and other support measures for arranging employment.

Support for the employment of disabled persons is arranged for persons who due to an injury, illness of for other similar reasons for long periods have special difficulties to cope with ordinary tasks in life and who, in addition to the services provided by the labour administration, need support for finding employment on the open labour market. Within the scope of activities for supporting the employment of disabled persons such work can be arranged where there is, between the disabled person and the service provider, an employer-employee relation referred to in the Employment Contracts Act (Statue Book of Finland 55/2002). Activities for supporting the employment of disabled persons consist of rehabilitative and preparatory measures to enable disabled and handicapped persons to find ordinary full or part time employment. All appropriate measures and activities are available. If needed, these measures shall facilitate the transfer from disability pension back to normal working life.
Work by disabled persons means activities for promoting and maintaining such persons' capacity to work. Work is arranged for disabled persons, who cannot participate in sheltered work and whose livelihood mainly depends on benefits granted because of illness of inability to work.

Act on the Planning of Social and Health Care and on Central Government Transfers to Local Government (Statute Book of Finland 733/1992)
Provisions concerning support for the employment and work of disabled and handicapped persons. Municipalities may themselves manage these tasks, or they may purchase these services from outside service suppliers. These services are financed by resources that the municipalities allocate for that purpose.

Non-Discrimination Act 1.02.2004
The Act is applied to recruitment criteria, working conditions, terms of employment, personnel training and promotion, conditions for access to self-employment, and support for business activities. Membership and involvement in a trade union or employers' organization also fall under the scope of the Act.

Income limit (Section 22 of the National Pensions Act)
An unequivocal income limit of 588,66 euro was introduced in the National Pensions Act. When the amount of earned income exceeds the income limit the national pension received by an employee benefiting from full disability pension becomes dormant. When the disability pension is dormant the person concerned is not considered to be a pension beneficiary. Dormant pension starts running again if there is no more job, or when earned income has decreased below 588,66 euro per month.

Extension of the period when national pension is dormant (Section 22 of the National Pensions Act)
The transfer from disability pension to working life was facilitated by extending the maximal period for a dormant national pension from the previous two years to five years.
By virtue of Section 22(1) of the National Pensions Act disability pension granted until further notice can be laid dormant for periods of not less than six months and not more than five years.

Services and Assistance for the Disabled (Act amending Section 2 of the Services and Assistance for the Disabled Act
For the first two years when national pension is dormant the beneficiary shall receive as incentive a disability allowance of 335,09 euro, i.e. the same amount as the special disability
allowance.

Employment subsidized by the labour administration Pay subsidy
The employment office may grant the employer pay subsidy for the costs of hiring an unemployed person, if the job-seeker does not find employment on the open labour market or if he or she is not placed in education.
The employment office considers on a case-by-case basis, when the job-seeker finding employment may be facilitated by granting pay subsidy. The pay subsidised employment shall improve the occupational skills and the labour market position of the unemployed job-seeker and facilitate the entry of a long-term unemployed person into the open labour market. The pay subsidy may also be granted for employment based on a contract or for apprenticeship training. It may be granted to municipalities, enterprises and other private sector employers, such as nongovernmental organisations, foundations and private households as well as social enterprises.
The pay subsidy consists of two parts, the basic subsidy and the additional part. In 2006, the amount of basic subsidy is 23,50 euros/day.
The amount of the additional part varies on a case-by-case basis at the employment office's discretion. The amount of the additional part is the basic subsidy increased by 60 % at maximum, or in certain cases increased by 90 % at maximum. The amount of the subsidy is determined by the issues concerning the jobseeker.

Pay subsidy voucher
The job-seeker can use a pay subsidy voucher, given by the employment office, to support his or her independent job-seeking. The pay subsidy voucher shows that pay subsidy may be granted to the employer for the pay costs of the voucher's holder. The prerequisites for granting the subsidy concerning the employer are investigated separately.
The pay subsidy was taken into use in the beginning of the year 2006. It replaces the employment subsidy and the combined subsidy.

Modification of the period for paying rehabilitation allowance
The period for paying disability allowance to young people of more than 16 years of age, whose ability to work and to earn income, or whose opportunities to choose a profession, are considerably reduced due to illness, injury or disability, was prolonged to four years. However, a precondition is that a personal study and rehabilitation plan is made for the young person concerned. In general, disability pension is not granted to young people of less than 20 years. Instead rehabilitation allowance is their primary source of livelihood. Nevertheless, a pension can be granted to persons in whose case investigations indicate that they have no qualifications for vocational rehabilitation, or that their rehabilitation has been interrupted, or has been terminated without success due to illness.

Modification of the right to benefit from sickness insurance allowance
An employee benefiting from disability pension is entitled to a daily allowance, if that employee becomes unable to perform the work that he or she did while benefiting from that pension, immediately before the disability to work set in.

Work try-out at the workplace
During a work try-out at the workplace, the client's aptitude to the work or profession is determined together with the client's education and employment options. The work try-out can be organised, for example, in a State agency, working for a municipality / municipal federation, a non-governmental organisation, a foundation or a company. The person participating in the work try-out does not have a contractual relationship with the organiser of the work try-out placement or the employment office.
A written agreement is always made on the work try-out at the workplace.

Support for arranging working conditions for the employer
The support for arranging working conditions can be used to reimburse the machines, equipment or working methods needed by the disabled person or the necessary changes made in the workplace's external conditions in order to eliminate or diminish the handicap caused by injury or illness. The support for arranging working conditions can also be used to reimburse the help given by another employee to assist the disabled person in coping with his or her work. The costs incurred by the abovementioned arrangements in working conditions can be reimbursed to the employer by the employer's request.

Suspended pension
A pensioner for whom a full disability pension has been granted under section 22 (1) of the National Pensions Act until further notice and who is unable to perform his/her regular work or other comparable work because of his/her illness, disability or injury has the right to have his/her pension suspended. A person receiving disability pension may also be in gainful employment and not lose his/her pension if his/her earnings are lower than 58.66 euro per month. In the case of a suspended pension, the person will not be considered a pensioner but will be paid support to the amount of a special disability allowance (335.09 euro per month in 2004) for up to 24 months as an incentive.
He/she will also be entitled to all employment services. Payment of the pension will be resumed if the person stops working or his/her income falls below 588.66 euro. The pension can be suspended for a maximum of five years at a time.

Support for arranging jobs for handicapped
The amount of the benefits was increased to 2 500 euro per handicapped and to 3 500 euro per severely disabled person. Support for help given by another employee can be granted to an amount of not more than 250 euro per month, for a period of not more than one year. In case of seriously disabled persons such support can be granted to an amount of not more than 350 euro for a period of not more than two years.

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APT logo Events
25-09-2009 European (Valorisation) Conference - Creativity and Innovation in Education, Training, and Employment This final valorisation conference will bring together a number of projects that support the employability of people with disabilities, disadvantaged groups within the society as well as minority groups. The conference will consist of a number of workshops, combined with a demo area where participants will be able to try out, obtain, and assess various outcomes of the projects present.
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