Suspension and penalties

If the applicant for unemployment benefits does not meet the conditions of Act no. 54/2006 on Unemployment Insurance upon registration and / or while receiving unemployment benefits, benefit suspension periods and / or penalties may be imposed. There may also be a recurring effect if the applicant has previously been subject to a benefit suspension period and / or penalties. 

Please be informed that the applicant must confirm their job search between the 20th and 25th of each month during the benefit suspension period / penalties. 

If their job search is not confirmed within the specified period, the benefit suspension period / penalties will be postponed until confirmation has been made. 

Revocation of unemployment benefits due to suspension periods/penalties are according to the following:

  • 2 months – General suspension period is two months. 
  • 3 months - In the event of a recurrence, the benefit suspension period is three months. 
  • The applicant must re-earn their entitlement to unemployment benefits - This applies to those who work at the same time as receiving unemployment benefits but fail to report their employment to the Directorate of Labour. 
  • An applicant is not entitled to unemployment benefits until he has worked for 24 consecutive months in the domestic labour market. (This rule applies to those who have been subjected to penalties and have received benefits for 24 months or more. This also applies to those who have been subjected to penalties for the third time. 

Working off your penalties

If you have been subject to a suspension period or penalty for two months, it may be revoked if the following conditions are fulfilled.

  • You have accepted employment for at least two weeks before re-applying for unemployment benefits This also means that you have de-registered from unemployment benefits.
  • You have not terminated your employment without valid reasons, or lost it for reasons that are your own fault.

If the following conditions are not met, e.g. if the job lasts for a shorter period of time, or if you have quit your job without valid reasons or lost it for reasons that are not your fault, the penalty period/suspension period continues when you apply for unemployment benefits again. 

Termination of employment/studies

Applicants for unemployment benefits may be subjected to a suspension period for unemployment benefits at the beginning of the benefit period if:

  • They terminate their employment without a valid reason 
  • Thtermination of their employment is of their own fault 
  • Studies are terminated without a valid reason 
  • Their study ratio is reduced to meet the conditions of the study agreement.

Submitting a written explanation regarding the termination of employment/studies alongside the application for unemployment benefits will decrease the processing time of the application. If a written explanation is not submitted, the processing of the application will be postponed, and the applicant will be provided with an opportunity to submit an explanation / objection regarding possible decisions made by The Directorate of Labour. 

Applicants who are subjected to a benefit suspension period at the beginning of the benefit period are not entitled to income-related unemployment benefits. 

Rejection of job or job interview / Rejection of participation in labour market measures

Applicants may be subjected to penalties if they:

  • Reject work offered through the directorate without providing a valid reason. 
  • Do not participate in the preparation of a job search plan or do not follow such a plan. 
  • Reject the resources that the Directorate of Labour offers them i.e., participation in courses. 
  • Fail to attend scheduled interviews or meetings of the Directorate of Labour without valid reason. 

Failure to provide information or report changes in circumstances

Job seekers shall notify The Directorate of Labour without undue delay of any changes that may occur in his or her situation during the time he or she receives unemployment benefits or is subject to a waiting period or penalties.

  • Incidental employment 
  • Part-time employment 
  • Full-time employment / job search is discontinued 
  • Other income the applicant receives alongside unemployment benefits 
  • Studies / courses 
  • Overseas travel without a U2 certificate 
  • Residing abroad 
  • Illness 
  • Reduced capacity or total incapacity to work  
  • Changes to telephone number and/or e-mail address 

Failure to fulfil such obligations to provide information may lead to penalties and the collection of overpaid unemployment benefits in accordance with Chapter X of Act no. 54/2006 on Unemployment Insurance.

Unemployment benefits obtained fraudulently

If an applicant for unemployment benefits deliberately fails to notify The Directorate of Labour of any changes that may occur to their circumstances during the period in which they are paid unemployment benefits, or is subject to a benefit suspension period or penalties in accordance with the Unemployment Insurance Act, or deliberately provides incorrect information which leads to him being considered fully insured in whole or in part, shall not be entitled to payment until they have worked for at least 12 months in the domestic labour market before reapplying for unemployment benefits.

A job seeker that has been registered with The Directorate of Labour for four weeks or longer and is found to be working in the domestic labour market at the same time as they receive payments of unemployment benefits or are subject to suspension periods or penalties, without notifying The Directorate of Labour about the incidental work or that their job search has stopped, shall not be entitled to unemployment benefit payments until they have worked for at least six months before applying for unemployment benefits again. 

The applicant is also required to reimburse over-paid unemployment benefits.

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