Fund rules

The Financial Supervisory Authority has confirmed the rules for the Unemployment Fund for Higher Educated Employees Erko on 18.11.2024 and they are effective from the confirmation date onwards.

CHAPTER I     Field of activity of the Fund

 1 § Name, domicile, area of operation and purpose of the Fund

The name of the fund is the Unemployment Fund for Higher Educated Employees Erko, of which the name Erko is used. Hereinafter it is referred to as the Fund. The domicile of the Fund is the city of Helsinki.

The Fund can support the employment of its members as stated in the Unemployment Fund Act with a decision from the Fund meeting.

The Fund’s area of operation is the entire country.

The Fund is a mutually liable organization whose purpose is to provide its members with earnings-related daily allowance and expense allowance as stated in the Unemployment Security Act as well as other statutory benefits included in the Fund’s field of activity in accordance with the legislation in force at the time.

CHAPTER II     Membership

2 § Terms of membership and joining the Fund

Membership can be attained by a wage earner within the scope of the Unemployment Security Act who has not yet turned 68 years old and that has received a higher education or other corresponding specialized education or that is studying to receive such an education or is working in a position requiring such an education or in a field requiring such an education and that the Fund accepts as its member.

An employee whose livelihood is seen to be based on wage income from work done for another party is considered a wage earner.

A member of the Fund may not simultaneously be a member of another unemployment fund.

A written application to join the Fund must be submitted to the Fund.

The Act on Electronic Services and Communication in the Public Sector or other act given in lieu of the Act on Electronic Services and Communication is applicable to the submission of the application.

Membership applications and memberships are accepted or declined by the Head of the Fund or a Fund employee authorized by the Board.

Fund membership begins the day the application arrives at the Fund, granted the membership fee has been paid from that date onwards.

The Fund will give a decision regarding the acceptance of a member as needed and always if requested by the member.

An unemployed Fund member can join another Fund within one month of their Fund being dissolved or placed in liquidation or bankruptcy. The one-month deadline begins with the date of the decision of the Fund meeting by which the Fund is placed in liquidation or dissolved or the date of the court’s decision by which the Fund declares bankruptcy.

3 § Resigning from the Fund

If a member wants to resign from the Fund, they must notify the Fund in writing. The resignation will take effect on the date the notification arrives at the Fund at the earliest or on a later date mentioned on the notification.

The Act on Electronic Services and Communication in the Public Sector or other act given in lieu of the Act on Electronic Services and Communication is applicable to the written notification.

Fund membership will end at the end of the month when the member turns 68 years old at the very latest.

4 § Notice, warning and expulsion from the Fund

Having consulted the member, the Fund’s Board can issue a notice, warning or expel the Fund membership of someone

1. who has given false or misleading information when becoming a member,
2. who has fraudulently misrepresented or concealed facts that affect the entitlement to or amount of benefits and
3. who refuses to comply with the Fund rules.

If a member has not paid their membership fees within three months of the beginning of the period they concern, the member can be expelled from Fund membership from the date the membership fees have not been paid onwards. The expulsion decision is made by the Head of the Fund or a Fund employee authorized by the Board.

The head of the Fund or a Fund employee authorized by the Board must consult the member before the expulsion decision.

The head of the Fund or a Fund employee authorized by the Board can expel the Fund membership of someone who has permanently left the profession or field of work included in the Fund’s scope.

Practicing full-time entrepreneurship as defined in the Unemployment Security Act for over 18 months is also considered permanently leaving the scope of the Fund.

5 § Rejoining

If a member joins another Fund within one month after resigning from their Fund, their employment periods and membership periods from the previous Fund will be acknowledged according to the rules of law.

If a member that has been expelled from the Fund is accepted as a member again, prior employment periods and membership periods and priorly paid membership fees will not be acknowledged. This also concerns members expelled from other Funds that are accepted as new members to the Fund.

6 § Membership fee

The membership fee is a euro amount per calendar year approved by the Financial Supervisory Authority annually. The membership fee must be paid as ordered by the Fund’s Board within the calendar year.

A member cannot be exempt from the membership fee.

If a member joins the Fund or resigns from the Fund in the middle of the calendar year, the membership fee is equivalent to the corresponding portion of the annual membership fee.

The membership fee and the amount of its portions and its reimbursement are calculated using full calendar months.

Excess payment of the membership fee or a part of it can be reimbursed with a person’s written request.

Sums under 10 euros will not be reimbursed.

Possible unpaid membership fees can be subtracted when paying daily allowance.

CHAPTER III     Administration of the Fund

 7 § Governing bodies

The governing bodies of the Fund are the Fund meeting, the Board and the Working Committee.

8 § Fund meeting

The Fund’s highest decision-making power is exercised by the Fund members’ meeting. The time, place and means of participation are ordered by the Board.

At the Fund meeting each member that is present has one vote. In the event of a tie, elections are determined by drawing lots and in other matters the decision will be made based on the opinion that the Chair of the meeting endorsed.

9 § General Fund meeting  

The general Fund meeting is held every year at a time and place ordered by the Board by the end of November.

At the general meeting

1. the Board’s annual report and auditor’s report for the previous term must be presented,
2. the financial statement for the previous year must be confirmed,
3. actions warranted by the administration and accounts must be decided,
4. the processing of the result of the accounting period must be decided,
5. the granting of discharge from liability to those responsible for the accounts must be decided,
6. the remuneration and compensation for loss of income for the Board’s Chair, other Board members, Working Committee members, experts and possible Board appointed working group members and auditors must be decided,
7. an election must be held for the Chair of the Board when it is the Chair’s turn to resign,
8. how many Board members will be chosen for the next two-year term must be decided,
9. an election must be held for the members whose turn it is to resign as well as for their personal deputy members,
10. an election must be held for two auditors and deputy auditors as stipulated in the Unemployment Fund Act
11. the basis for the membership fee must be determined and,
12. other matters announced to be processed during the meeting in the meeting invitation must be processed.

Final decisions on matters other than those mentioned above may not be determined at the meeting.

10 § Additional Fund meeting

An additional Fund meeting must be held

1. when the Fund’s Board considers it necessary,
2. when the Financial Supervisory Authority or auditors, warranted by their audit, demand it or
3. when at least one tenth of the members demand so in writing in order to address a specific matter.

If the number of members has decreased to below 8 000, an additional Fund meeting must be convened at once to decide if the Fund’s operations are to be continued or not and what actions must be taken in these circumstances.

If the Fund’s Board refuses to convene an additional Fund meeting without a legitimate reason, the Financial Supervisory Authority must dispatch the invitation.

The meeting invitation must specify the matters to be addressed. Final decisions on matters other than those mentioned in the meeting invitation may not be determined at the meeting.

11 § The Fund’s Board

The Fund’s Board is made up of the Chair and eight to twelve (8-12) ordinary members and eight to twelve (8-12) personal deputy members for the ordinary members.

Those elected to the Board must be at least 18 years old and meet the qualification requirements stipulated in the Unemployment Fund Act.

At least 2/3 of the Board’s ordinary and deputy members must be members of the Fund for the entire duration of the term.

The term of the Board’s Chair and members is two (2) calendar years.

Annually half of the board members will have their turn to resign. At the same time their personal deputies have their turn to resign.

The Board chooses the First Deputy Chair and Second Deputy Chair from amongst themselves annually at their first meeting of the year.

The Chair of the Fund’s Board and Deputy Chairs form the Working Committee.

If the position of a Board member becomes vacant in the middle of the term or if a Board member loses their eligibility to their position in the middle of the term, then their duties will be taken care of by the deputy member until a new member is chosen by the Fund meeting.

12 § Operation of the Board

The Board convenes at the invitation of the Chair or, if they are unable, the First Deputy Chair, or if they are also unable, the Second Deputy Chair.

The Board is quorate when the chair of the meeting and in addition to them at least half of the members are present.

The opinion of the majority of the Board will become the decision of the Board. If votes are tied, elections are determined by drawing lots, but in other matters the opinion that the Chair of the meeting endorsed will win.

Minutes must be kept at the Board meeting, and they must be reviewed no later than the following Board meeting.

13 § Duties of the Board

The duties of the board are

1. to ensure that the Fund’s matters are taken care of in accordance with the law, official regulations, the Fund rules and decisions and guidelines confirmed at the Fund meeting,
2. to be responsible for the Fund’s strategic policies,
3. to ensure that the Fund has a functioning management system with clearly defined responsibilities,
4. to draw up a continuation plan for the Fund,
5. to ensure that the Fund has sufficient internal monitoring, sufficient risk management systems and to draw up the written operating principles concerning them,
6. to ensure that the Fund has written operating principles concerning rewarding,
7. to make decisions about operating principles for outsourcing,
8. to draw up the operational plan and financial estimate for the next calendar year and to make the annual proposal to the Financial Supervisory Authority concerning the amount of the membership fee,
9. to draw up an investment plan concerning the investment of assets and to follow its implementation
10. to make decisions about the investment of assets profitably and securely while taking into account the principles approved in the investment plan,
11. to appoint and dismiss the Head of the Fund and stipulate the terms and duties of their employment,
12. to choose the First Deputy Chair and Second Deputy Chair from amongst themselves at the first meeting of the year,
13. to assign working groups as needed and to name members to them to investigate and prepare for the Board any separately decided matters having to do with the operations of the Fund,
14. to oversee the management of the member register,
15. to assemble the Fund meeting and prepare the matters due to be addressed at the meeting,
16. to give the Fund meeting a written statement of the suggestions that the auditors or members of the Fund want to bring forward for the meeting to address,
17. to draw up a financial statement and annual report and make a proposal for actions concerning the Fund’s surplus or deficit,
18. to annually submit an application to the Ministry of Social Affairs and Health for the Unemployment Fund Act’s financing contributions,
19. to make decisions about taking out loans as referred to in § 18,
20. to authorize the right to sign for the Fund, if necessary,
21. to represent the Fund and exercise its right to speak in court and before other authorities and
22. to make decisions on all other matters that have not been otherwise ruled in law, regulations or these rules.

14 § Working Committee and its duties

The Chair of the Board will act as the Chair of the Working Committee or if they are unable, then it will be the First Deputy Chair. The Working Committee is called to meet by the Chair or if they are unable or have a conflict of interest then by the First Deputy Chair.

The Working Committee is quorate when there is at least one member present at the meeting in addition to the Chair.

The term of the Working Committee is a calendar year.

The duties of the Working Committee are

1. to employ and dismiss the employees employed with permanent contracts excluding the Head of the Fund and to decide their salary and duties,
2. to make decisions about discharging employees from their employment relationships partially or completely,
3. to prepare the matters to be addressed at Board meetings and
4. to take care of any other duties instructed by the Board.

Minutes must be kept at the Working Committee meeting, and they must be reviewed no later than the following Working Committee meeting.

15 § Head of the Fund and their duties

The employee officially responsible for the Fund is the Head of the Fund.

The duties of the Head of the Fund are

1. to be responsible for the Fund’s operational activities as instructed by law, regulations, Fund rules and the Board’s instructions,
2. to supervise the payment of benefits,
3. to prepare matters to be addressed at Board meetings, to report the most important matters concerning the Fund’s operations and finances to the Board and to implement the decisions of the Board,
4. to prepare matters to be addressed at Working Committee meetings and to implement the decisions of the Working Committee,
5. to ensure that the Fund’s monetary assets and accounts are handled appropriately,
6. to take care of the organization of the Fund’s internal audits,
7. to hire fixed-term employees for the Fund and set their terms of their employment
8. to ensure that the financial statement for each accounting period and the annual report is addressed at the Board meeting,
9. to accept and expel members,
10. to be responsible for the investment of assets as detailed by the principles in the investment plan drafted by the Board as well as by the Board’s decisions,
11. to perform all other tasks assigned to them by the Board.

16 § Signing for the Fund

The Chair of the Board or the Head of the Fund or any other person authorized by the Board are entitled to sign for the Fund.

In the case of debt obligations, the Chair of the Board or the Head of the Fund and one other Board member must sign together.

When the Fund’s decision is given computationally, the signature can be marked electronically.

17 § Meeting invitations and notifications to members

Meeting invitations and other notifications meant for members concerning the Fund will be published in one or more magazines that reach the members or by other means determined by the Board at least two weeks before the date in question.

18 § Taking out loans

The Board of the Fund has the right to take out temporary loans solely for the payment of benefits when there are no funds available to do so.

19 § Accounting period and financial statements

The accounting period of the Fund is a calendar year.

The financial statement, which includes the income statement, balance sheet, attachments and the Board’s annual report must be ready by the end of March.

The audit must be delivered by the end of April.

20 § Reserves

The Fund’s reserve is an equalisation reserve. The annual surplus is transferred to the equalisation reserve.

21 § Covering a deficit

If the financial statement indicates a deficit, it can be covered by using a maximum of 50 percent of the equalisation reserve.

If the deficit cannot be covered as stated above, the deficit will be covered by an additional contribution from the assets of the unemployment funds’ support fund and state assets in accordance with the law.

CHAPTER IV     Special provisions

 22 § Supervision of the Fund

The supervisory authority for the Fund is the Financial Supervisory Authority.

23 § Changes to the Fund rules

If the Unemployment Security Act or its amendments or the Unemployment Fund Act or other legislation relevant to the Fund is changed, the Fund’s Board has the right to make corresponding amendments to these rules.

Changing these rules in a situation other than that mentioned in paragraph 1 or dissolving the Fund in a situation other than that mentioned in § 10 paragraph 2 requires that a decision has been made in the Fund’s meeting with at least a two-third (2/3) majority of votes.

24 § Transfer of assets in the event of dissolution

If there has been a decision to dissolve or suspend the Fund, then the assets left after the payment of debts and completion of other commitments will be surrendered to the Employment Fund.