Many food and beverage service sector businesses will receive compensation for restrictions on activities without an application – businesses can apply for job retention and re-employment support as of 5 June

Businesses in the food and beverage service sector can receive support for job retention and the re-employment of employees once their activities resume, along with compensation for the restrictions on their activities due to COVID-19. The support and compensation will be granted by the KEHA Centre, which provides development and administrative services for the Centres for Economic Development, Transport and the Environment (ELY Centres) and the Employment and Economic Development Offices (TE Offices).

The KEHA Centre will publish instructions on applying for support and compensation on its website on 5 June 2020. The application channels will also open on 5 June 2020.

Businesses receiving compensation through the mass payment do not need to apply for it separately. The amount of compensation to be paid is calculated based on information received from the Tax Administration. Visit the KEHA Centre website to find out if your business is covered by the mass payment.

The amount of support and compensation depends on the company

The restaurant support model is made up of two complementary components. The first part supports businesses in ensuring job retention and re-employing their employees, while the second part compensates businesses for the restrictions on their activities and supports them in managing their inflexible costs.

The amount of support and compensation depends on the company. The size of restaurants and the scope of business in the sector vary greatly.

Compensation for the restrictions imposed on activities:

• The amount of the compensation is based on the decrease in the business’ sales in April 2020 compared to the average sales in April–May 2019 or January–February 2020. The period that is most favourable for the business will be automatically selected as the reference period.
• The compensation can be no more than 15 per cent of the sales decrease, nor can it exceed EUR 500,000.
• The compensation will be paid to companies mainly without the need for an application, in the form of a mass payment based on company-specific VAT information received from the Tax Administration. In this case, the business owner does not need to take any action on their own. For companies that cannot be included in the mass payment, the compensation will be granted upon application.
• The compensation will be paid in two instalments to the companies that will receive it in the form of a mass payment. The first instalment of the compensation will be paid as soon as possible, while the goal is for the final instalment to be paid at the end of June.
• The amount of the compensation is not affected by the other support received by the business. Any coordination between different forms of support will be assessed separately.

Support for re-employment:

• The amount of support will be EUR 1,000 per employee. The maximum number of employees eligible for support is the number of employees employed in the enterprise on a full-time basis in February 2020, including through temporary agencies or subcontracting. However, due to the EU State aid rules, the total amount of support granted to a single company or group may not exceed EUR 800,000.
• Support will be paid for those employees to whom the company will pay a total of EUR 2,500 for the period from 1 June to 31 August 2020 or for whom it will pay a total of EUR 4,500 per employee to a temporary agency or subcontractor during that period.
• The granting of support for job retention and re-employment does not depend on the type of employment relationship of the employee.
• The support will not be granted to cover the wage costs of workers for whom other public aid has already been granted.
• The support is granted on application. The support will be paid as soon as the KEHA Centre has made a decision to grant it.

Separate support for the food and beverage service sector is based on the will of Parliament

On 4 June 2020, the Government issued a decree on the entry into force of an act on support for job retention and re-employment and compensation for the restriction of activities for companies in the food and beverage service sector. The act lays down provisions on reasonable compensation for the restriction of activities in the accommodation and food and beverage sectors and on measures to mitigate the impact on these activities. Businesses in the food and beverage service sector were required by law to keep their indoor and outdoor premises closed between 4 April and 31 May 2020.

More information for the media:

Liisa Huhtala, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 50 396 3333
Timo Kaisanlahti, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 40 570 5032 (compensation for restrictions on activities)
Ville Heinonen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 50 434 2526 (support for job retention and re-employment)
Pauliina Smolander, Payments Manager, KEHA Centre, tel. +358 29 502 6152

More information for business owners:

KEHA Centre telephone service: +358 295 024 800
KEHA Centre email address: [email protected]