Claim for recovery
Earnings-related allowance or any other benefit paid out by the fund must be reclaimed if the payment was unfounded or excessive. If you have been paid a benefit in excess, we will consult you before making a recovery decision, thereby allowing you to give your own account on the matter.
The claim for recovery can be waived, either in full or in part, if that is considered reasonable and the excess payment of the benefit was not due to fraudulent conduct. Recovery can also be waived due to the low amount of overpayment. Waiving on the basis of reasonableness is considered based on the overall situation of the member and their family. In such cases, for example, the economic and social situation of the family is taken into account. The assessment is usually performed based on a report provided by a social welfare authority.
We issue about 1,600 recovery decisions annually. Numerically, the main reason for overpayments (about 40%) is a pension or other social benefit granted retrospectively. Pension institutions and Kela will pay the pension, sickness allowance or accident allowance granted retrospectively for the benefit period granted by the fund to the unemployment fund.
More than 20% of recovery decisions result from the fraudulent conduct of members. The most common cause of abuse is employment that has not been reported to the unemployment fund when applying for a benefit.
When a potential case of abuse is detected by the fund, a consultation is submitted to the member on the matter. If the suspicion on abuse proves to be well-founded, the fund must issue a sanction in accordance with the Unemployment Funds Act, which is either a notice, warning or expulsion from the fund.
In addition, the fund must issue a request for investigation on the abuse to the police if the member has left a period of employment of at least five days unreported when applying for a benefit. A request for investigation is also considered whenever a member does not report a social benefit, salary for the notice period, holiday pay or holiday compensation received during the benefit payment period.