Legislative changes to make fixed-term employment contracts more flexible to enter into force on 1 June 2026

A fixed-term employment contract may be concluded without a justified reason in cases concerning the first employment relationship between an employer and an employee or if at least five years have elapsed since the previous employment relationship between them. A fixed-term employment relationship could be concluded for a maximum of one year without a justified reason.

Both parties could terminate a fixed-term employment contract concluded without a justified reason after it had lasted for at least six months. The employer will have the duty to determine whether the continuation of the employment relationship is possible. Moreover, the employer will be obligated, under certain conditions, to offer the employee work after the termination of the employment relationship if the employer is considering hiring more workforce. 

The duration of the notice period for lay-offs will also be shortened. Under the new rules, the employer must notify the employee of a lay-off no later than seven days in advance. In addition, the employer’s re-employment obligation will only apply to employers with at least 50 employees.

These changes aim to remove barriers to hiring and to improve the operating environment of small and medium-sized companies, in particular.

The Government discussed the parliamentary reply at its plenary session on 28 May 2026. The Government proposes that the President of the Republic approve the legislative amendments on 29 May 2026. The amendments are due to take effect on 1 June 2026.

Inquiries:
Jaakko Aromaa, Special Adviser to the Minister of Employment, tel. +358 295 047 110 (questions to the Minister of Employment) 
Katariina Jämsén, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 143