Tripartite working groups to draft legislative proposals on removing barriers to employing workers

The Ministry of Economic Affairs and Employment has appointed two new tripartite working groups to draw up the Government's labour market reforms. One of the working groups will focus on those grounds for terminating employment that are related to the employee's person. The other will handle the grounds for fixed-term employment contracts, the period of notice for layoffs, and the reemployment obligation.

The Government aims to remove barriers to employing workers, and to improve the business environment, particularly for SMEs. The working groups have been tasked with drafting the legislative amendments to realise these objectives, which were set out in the Government Programme.

The working groups include representatives from:

• Confederation of Finnish Industries
• Federation of Finnish Enterprises
• Local Government and County Employers
• Ministry of Finance / Office for the Government as Employer
• Central Organisation of Finnish Trade Unions
• Confederation of Unions for Professional and Managerial Staff in Finland
• Finnish Confederation of Professionals
• Joint representative of employee confederations

The term of the working groups will end on 31 December 2024. The Government plans to submit its proposals on the legislative amendments to Parliament in the 2025 spring term.

Amendments to regulation on grounds for termination related to employee's person

The employer may currently terminate a permanent employment contract for proper and weighty reasons arising from the employee. In line with the Government Programme, the regulation will be amended to make it sufficient to terminate an employment contract for a proper reason.

Changes to grounds for fixed-term employment contracts, period of notice for layoffs and reemployment obligation

In line with the Government Programme, the provisions of the Employment Contracts Act on fixed-term employment contracts will be amended so that an employment contract may be concluded for a fixed term of one year without a special reason. However, the legislation will need to ensure that the amendment does not lead to the unjustified use of consecutive fixed-term contracts.

The plan is to cut down the notice period for layoffs to seven days. This provision would apply irrespective of the provisions of a collective agreement. At present, employers need to give their employees a personal notice of layoff no later than 14 days before the layoff begins.

The reemployment obligation would be abolished for businesses and organisations that regularly employ fewer than 50 persons. This provision would also apply irrespective of any provisions of a collective agreement. At present, for a period of four months, or six months in the case of longer employment relationships, an employer must reemploy an employee who has been dismissed for financial or production-related reasons, provided that the employer needs workers for the same or similar tasks that the dismissed employee had previously performed.

Inquiries:
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001 (grounds for termination related to the employee's person)
Elli Nieminen, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 056 (grounds for fixed-term employment contracts, period of notice for layoffs and reemployment obligation)