The FV System

About the system

The FV system is a type of unemployment benefit covering temporary unemployment for fish factory workers.

The system provides unemployment benefits during periods of inactivity at fish factories due to factors such as a lack of raw materials.

To qualify for FV benefits, your workplace must be approved by the Faroese Unemployment Office (ALS) under the FV system.

Conditions for fish factories

To qualify for the FV system, a fish factory must:

  • be regularly engaged in the processing of fish or fish produce.
  • have estimated regular processing activities of a minimum of six months over the next 12-month period. Each period of activity must be estimated to last at least two months.
  • have legal authorisation or equivalent approval from Heilsufrøðiliga Starvsstovan (the Faroese Food and Veterinarian Authority) for fish processing activities.
  • notify ALS of the expected number of employees that will be associated with the FV system. The reported number of employees must correspond with the factory’s production capacity during regular production hours.
  • Notify ALS of any changes that may affect the possibility of regular processing at the factory.

To be included in the FV system, fish factories must apply in writing to ALS, with the required documentation attached.

Conditions for employees

To qualify for unemployment benefits through the FV system, you must be released from work due to a temporary halt in production at the factory, and you must fulfil the general ALS conditions for being available for any type of work.

You are not regarded as an unemployed fish factory worker if you:

  • are engaged in any form of education during regular work hours
  • are an independent businessperson
  • have contractual connections with other employers for more than ten hours of work per week
  • have worked more than ten hours per week for another employer for eight consecutive weeks
  • have not worked at the fish factory for eight consecutive weeks
  • Receive regular unemployment benefits.
Temporary halt in work

A temporary halt is when work at the fish factory is suspended due to factors such as a lack of raw materials.

If you are released from work for reasons other than a lack of raw materials or similar reasons for periods of up to two weeks, you are also eligible for benefits through the FV system.

If this period exceeds two weeks, you are no longer entitled to these benefits.

How to apply

When you apply for benefits through the FV system, you fill in an application form, which you can find on this website or by contacting ALS.

The application includes details such as the start date of your permanent employment at the fish factory, whether your work full-time or part-time, work experience and education. The application must also include documented proof from your employer that you are an employee of the factory.

Benefits are paid from the date ALS receives your application, provided you meet the conditions for receiving benefits through the FV system.

Benefit rates

Your unemployment benefits are calculated based on your earnings in your base year, i.e. the full working year required to qualify for unemployment benefits through the FV system.

Your benefit rate is 80% of your total earnings during the base year. This rate is recalculated on 1 January of every year. The new rate cannot be lower than the one determined from your base year.

If you rejoin the FV system after having been unregistered from the system, your benefits may be affected since the benefit rate is always based on your earnings in the 12 months prior to qualifying for unemployment benefits through the FV system.

If less than one year has passed since your last benefits payment from ALS – either through the regular unemployment system or the FV system – your most recent benefit rate is applied, provided it is higher than the new one.

Payment periods cover two weeks. The benefits are, however, calculated for each week individually. Benefits are calculated from the ninth hour of unemployment, and you are entitled to a maximum of 32 hours of unemployment benefits – equivalent to four days per week.

If your A-income (income taxed at source) from the fish factory or from another employer is higher than the standard weekly income of an unskilled worker, the income exceeding this amount will be converted into hours which are subtracted from your benefits.

If you work part-time, or if you work full-time at a fish factory which is not covered by the FV system, your benefits will be adjusted accordingly.

Who should submit an FV-card?

Everyone who qualifies for benefits through the FV system is required to submit an FV card. However, you are only required to submit the card for the periods in which you qualify for benefits from ALS.

FV days

The FV card should be submitted to the fish factory or to ALS on the dates set by ALS. These dates are known as ”FV days”.

The year is divided into payment periods. You are required to submit the FV card for each period you are eligible for benefits. Each payment period consists of 14 calendar days and a maximum of eight payment days – four per week.

FV days are usually Monday to Friday in the week following each payment period.

See the ALS calendar.

Failure to submit on time

It is important that the FV card is submitted exactly on the dates set by ALS – not before, not after. If, for example, you submit the card a day early or two days late, you will lose your benefits for one and two days, respectively.

The dates on which the FV card should be submitted are known as ”FV days”. Your employer has a list of these dates.

Confirmation by you and your employer

Only you are allowed to fill in, sign and submit the FV card to your employer or ALS.

Your employer confirms that the information entered on the FV card is correct. After this is done, you confirm that all information on the card – your own and your employer’s information – is correct. You also confirm that information from any other employer is correct.

The receipt is your proof

When you submit your FV card to the fish factory, a receipt stamp will be put on the card, and you receive a receipt. This receipt, which is also given a receipt stamp, acts as your proof that you have submitted the card in on time.

Your benefit payment will not be affected if your employer fails to forward your FV card to ALS on time. At worst, your payment will be delayed.

If your FV card has been filled in incorrectly, or if some information is missing, the card will be returned to you. Benefits will not be paid out until everything has been filled in correctly.

Application for unemployment benefit for fish factory workers