The pay security system secures the payment of claims arising from an employee’s employment relationship in a situation where the employer has gone bankrupt or is otherwise insolvent. All outstanding remuneration that the employer would be obliged to pay can be paid as pay security. If the outstanding remuneration has not been paid, the employee must contact a TE Centre or an ELY Centre.
The pay security application must be submitted within three months of the due date of the outstanding remuneration. Application forms are provided by TE Centres and ELY Centres. The form can also be found on the ELY Centre website or on the suomi.fi website under e-services. The easiest way to find the form is to type ‘palkkaturvahakemus’ in the search field. Private persons must use the form ‘Palkkaturvahakemus A’.
The application can be submitted to the local TE Centre or directly to the ELY Centre for Uusimaa, which issues decisions on wage guarantee matters.
Claims arising from an employment relationship that the employer would be obliged to pay to its employee can be paid as wage guarantee. Such claims include, for example, pay, holiday pay and compensation, holiday bonuses, compensation for shortened working hours, waiting time pay (including bonuses), compensation for tool and travel costs, daily allowances, notice pay, compensation for damage based on the employment relationship and working time banking claims. For claims other than those mentioned, the conditions for payment shall be determined on a case-by-case basis.
Filing a claim
When the employer has failed to pay the claim, the employee must contact a TE Centre or an ELY Centre to obtain a pay security application form. The form can also be found on the ELY Centre website or on the suomi.fi website under services and forms. The most convenient way to find the form is to enter ‘palkkaturvahakemus’ in the search field on the services and forms page. Private persons must use the form ‘Palkkaturvahakemus A’.
The application must be carefully completed and sent either to a TE Centre or directly to the ELY Centre for Uusimaa. The contact details of the ELY Centre for Uusimaa can be found on the ELY Centre website. Copies of the employment contract, certificate of employment and payslip must be attached to the application.
In the event of the employer’s bankruptcy, the administrator of the estate is obliged to draw up a list of outstanding pay claims without delay. The employees have the right to check the list to see what they are owed. The administrator of the estate will work with the ELY Centre to determine which claims may become payable as wage guarantee. The administrator of the estate usually applies for pay security on behalf of the employee. In this case, the application will be fast-tracked. The employee may submit their own application to file a claim for any claims that the administrator of the estate does not include in the pay security application.
A claim arising from an employment relationship must be applied for within three months of the due date. Claims are usually due by pay period and the final pay at the end of the employment relationship. Compensation based on the law or contract shall be applied for within three months of the date when the judgement became final or a contract was concluded.
If the application has not been submitted by the deadline, the claim cannot be paid as pay security.
More information on pay security
TE Centres and ELY Centres provide advice on issues related to wage guarantee.
Further information is also available in the pay security section of the ELY Centre website.
In bankruptcy situations, the administrator of the estate usually applies for wage guarantee on behalf of the employees. If your employer is bankrupt, contact the administrator of the estate.
To inquire about the due date of a claim, collective agreement or other employment-related matters, contact your local health and safety authority. You can find the contact information of your local office on the Occupational Safety and Health Administration website.