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Lappeenranta Employment Bonus

In the City of Lappeenranta's employment policy budget, appropriation for the year 2016, EUR 300,000 has been reserved for an employment bonus experiment. The aim of the employment bonus is to support unemployed jobseekers' transition to working life and to prevent societally significant unemployment.

The employment bonus is a discretionary, appropriation bound bonus that companies may receive for employing a person with a weak labour market status. The employment bonus will be developed together with companies and operators with the help of experience gained from the experiment.

Criterion for receiving the employment bonus

• The company must operate in Finland (Finnish business ID)
• The subsidy can be received by a company that does not have anything restricting employment (e.g. layoffs)
• The company is required to pay a salary pursuant to the collective agreement, and if there is no collective agreement a conventional and fair salary for the work in question must be paid.
• The employee must be from Lappeenranta (place of domicile is Lappeenranta) and an unemployed jobseeker who is either under 30 years of age or has been unemployed for over a year.
• The employment relationship must last for at least 26 full working weeks and include at least 18 hours of work per week.

If this has attracted your interest, this is how the employment bonus works

• A company hires an employee either by contacting the employer and entrepreneur services of TE services tel. 0295042001 or through their own recruiting
• when recruiting through the TE services, the eligibility for pay subsidy is checked on request by the company
• when recruiting without the help of TE services, the employee may have the information about their eligibility for pay subsidy or it can be checked from the TE services
• After a contract of employment has been made with the employee, the company can apply for the Lappeenranta Employment Bonus by filling in an electronic application form
• The contract of employment and consent from the employee to monitor the effectiveness of the employment bonus are sent as attachments with the application form
• The city makes a decision on whether or not the company is granted the employment bonus and then sends the decision to the company
• When 26 full working weeks come to an end and other criteria for the payout are met the company completes the payout form
• An employee testimonial or an account of the employment by calendar week is required as an attachment to the payout form

Criteria for payout

• The amount of the subsidy is EUR 1,500 / hired unemployed jobseeker
• The subsidy is paid as a lump sum into the bank account given detailed on the application form once for each individual employee, but a company can receive the employment bonus for several simultaneously employed employees who meet the criteria
• The City of Lappeenranta must immediately be informed if the payment of salary is interrupted or if there are any changes to the working relationship.
• If the working relationship does not last for 26 full working weeks the subsidy is only paid for the days the person has been paid wages (EUR 12/business day)

Aid offered to companies by cities and municipalities is considered officially supported and is, therefore, in accordance with the EU De Minimis Regulation. The employment bonus can be considered "de minimis aid", but the employer must take the employment bonus into consideration when monitoring officially supported aid.