Faroese unemployment benefits for foreigners must be restricted to one employer

The Faroese Labour Market Authority (ALS) has ruled that foreigners with work and residence permits must have their permits restricted to a single employer to qualify for unemployment benefits, a decision upheld by the Faroese Complaints Board, Kringvarp Føroya reports.

The authority rejected an application for unemployment support from January 31 to April 15 last year, citing that the applicant’s work and residence permit was not limited to one employer—a requirement for receiving benefits. According to ALS, without this restriction, individuals could exploit the labour market by holding multiple part-time jobs instead of securing full-time employment.

The Complaints Board confirmed ALS’s decision, stating that the lack of an employer-specific permit was the sole reason for rejection. Those with time-limited work and residence permits who do not qualify for unemployment benefits may apply to defer repayment of ALS funds.