Amount of unemployment benefit by type of notice

What types of termination are there?

Before we delve into the details of how unemployment benefit works, let’s first clarify what the different forms of termination of employment actually are and what impact they have on the entitlement and amount of unemployment benefit.

• Termination by the employee – That is, one where the employee decides to leave the job and gives notice himself.
• Termination by the employer – This occurs mainly when the employer terminates the employment relationship for reasons such as reorganisation or redundancy.
• Termination agreement – In this case, both parties agree to end the employment relationship, and the agreement can be for different reasons. Often this is where the employee and the employer have not reached an agreement and termination is the only possible solution.
• Immediate termination of employment – Immediate termination of employment, or what is known as an hourly notice, occurs for serious reasons, such as the employee’s health, or the employer’s failure to perform job duties or violation of a regulation.

Each of these methods has different effects on unemployment benefit entitlement and the amount of unemployment benefit.

Amount of aid depending on the type of notice

As we have already mentioned, the key factor in determining the amount of unemployment benefit is the form in which the employment relationship was terminated. The amount of the benefit and how long you receive it are governed by strict rules. This also affects whether the termination was at the will of the employer or whether you, as the employee, filed. Let’s look at the different situations.

1. Termination by the employee

If an employee gives notice on his or her own, he or she is entitled to unemployment benefits. However, we must say at the outset that the amount of the benefit is usually lower in this case. This is because the rules see this as an ‘unjustified’ termination of employment unless there are compelling reasons for the termination, for example, termination for health reasons may be an exception.

The amount of unemployment benefit when you give notice is therefore as follows:

• The benefit is only 45% of your average net monthly earnings.
• This reduced benefit applies for as long as you are eligible for benefits as a jobseeker, from the start until the end of your benefit payments.
• The length of unemployment benefit depends on your age: people under 50 are entitled to 5 months, people aged 50-55 are entitled to 8 months and people aged 55 and over are entitled to 11 months.

The exception is where the employee has terminated the employment relationship for a serious reason, such as deterioration in health, care for a family member or the need to relocate. In such cases, the allowance may be higher.

2. Notice given by the employer

If your employment is terminated by your employer, mainly for organisational reasons (for example, redundancy), you are entitled to full unemployment benefits. In this case, you, as the employee, have no influence on the termination of the employment relationship and are therefore entitled to full benefits without any reduction.

The amount of unemployment benefit when you are terminated is therefore as follows:

• You receive 65% of your average monthly net earnings for the first two months.
• In the third and fourth months, you get 50% of your average monthly net earnings from the state.
• From the fifth month onwards, you can expect 45% of your average monthly net earnings.

If your employer has terminated your employment for a serious reason (e.g. the employee’s fault), the benefit may also be reduced, even though the employer has given notice. If you are unsure how much support you are entitled to in your case, contact us for advice, which you can get within 48 hours.

3. Termination agreement

An agreement can be both advantageous and disadvantageous in terms of unemployment benefit. If your employment is terminated by agreement, it depends on the reason stated in the agreement. If the reason is, for example, organisational change or health reasons, you are entitled to full benefits. However, if the agreement does not mention any serious reasons, then the benefit is usually lower.

So the amount of unemployment benefit when you leave an agreement is as follows:

• If the agreement is concluded for serious reasons, such as deterioration in health, the benefit corresponds to the full amount, as mentioned above (65%, 50%, 45%).
• If no serious reasons are mentioned in the agreement, the employee receives only 45 % of the allowance for the entire duration of the payment.

It follows quite logically from this fact that employees should, if their situation permits, seek to have the reason for the agreement stated in the termination notice when negotiating a severance agreement.

4. Immediate termination of employment

If your employer immediately terminates your employment for a serious reason, such as ill health or gross misconduct, you are entitled to full unemployment benefit (65%).

However, this type of termination is quite rare and often requires legal or medical reasons. As an employee, you should have documentation to justify this. If you need legal representation or advice, contact us.

Frequently Asked Questions

Am I entitled to benefits if I quit during my probationary period?

Yes, you are also entitled to unemployment benefits if you quit during your probationary period. However, the amount may be affected by the reasons that led to your termination. If the notice was given by you and was not due to serious reasons, the benefit will be reduced to 45% of your average earnings.

What factors affect entitlement to full benefits?

Employees whose employment is terminated through no fault of their own – for example, due to organisational changes by their employer or for health reasons – are entitled to full benefits.

What happens if my employment is terminated without cause?

If you leave your job without good reason, your unemployment benefit will be reduced to 45% of your average monthly earnings. This reduced benefit will be paid for as long as you are entitled to it.

Summary

As you can see, the way in which a job is terminated significantly affects the amount of unemployment benefit a claimant receives. If you are considering giving notice without having already secured another job, we always recommend that you consider the reasons for termination as they will have implications for the amount of unemployment benefit you will receive. If your situation permits, consider consulting with our lawyer before resigning to help you find the best solution.