Didn’t you get your wages? This is how you apply for pay security
An employee must apply for pay security within three months of the claim, meaning the wages, being due. Photo: GettyImages.
If your employer has gone bankrupt or is otherwise insolvent, you can apply to get your unpaid wages as pay security within three months of when your wages were due.
Pay security is a statutory arrangement in Finland that guarantees employees their pay and other unpaid amounts from their employment in the event of an employer becoming insolvent. The state guarantees part of employees’ pay in the event of an employer becoming insolvent, for example by going bankrupt or defaulting on payments.
“If you don’t get your wages, wholly or partly, then as an employee you should react quickly. It could be a sign that your employer has payment difficulties”, says PAM’s lawyer Henry Vähtäri.
He points out that an employee must apply for pay security within three months of the claim, meaning the wages, being due. Pay security can be claimed by an employee in an employment relationship.
You can apply for all unpaid amounts, including for example basic pay, bonuses, overtime payments and holiday compensation. When applying for pay security, an employee can also apply for pay for six waiting days. The authority receiving the application checks the application and verifies that it has arrived in time.
“If an application is not made within the time limit for pay security, this constitutes grounds for rejecting the application. If the deadline has passed, the employee could miss out on the unpaid wages. It’s pretty tough”, Vähtäri comments.
If a company has filed for bankruptcy, the estate administrator generally makes the pay security applications for the unpaid amounts.
“If this happens, it is still recommended that employees check with the estate administrator that the application has been made, because responsibility ultimately lies with the employee”, Vähtäri points out.
He continues:
“Especially now during the coronavirus crisis, when many people have all sorts of other things on their mind, like applying for mortgage payment holidays and other day-to-day arrangements, three months can go by really quickly”.
The maximum amount of pay security is 15,200 euros based on work done for the same employer.
This is how you apply for pay security online
The authority responsible for pay security is the Centre for Economic Development, Transport and the Environment (ELY Centre). It is recommended to make the application via the ELY Centre’s e-services – log in with your online banking codes. You can also use the system to send the required documents to the ELY Centre. You can also apply for pay security by mailing an application on paper. The average processing time for pay security applications is 6 months.
With the help of the video below you can claim your unpaid wages easily. Further information is also available through PAM’s employment advice helpline weekdays between 10 am to 2 pm, tel. 030 100 625. Also take a look at PAM’s wiki card.
This news was published for the first time 29 April, 2020.