Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Country | Finland , applies nationwide |
Time period | Open ended, started on 26 January 2001 |
Context | COVID-19, Restructuring Support Instruments |
Type | Legislations or other statutory regulations |
Category |
Employment protection and retention
– Income support for people in employment (e.g., short-time work) |
Author | Amanda Kinnunen (Oxford Research) and Eurofound |
Measure added | 23 June 2022 (updated 08 November 2022) |
A temporary layoff scheme, or an obligatory unpaid holiday, is the Finnish version of flexible protection of employment.
According to the Employment Contracts Act [Työsopimuslaki] 55/2001, the term 'laying off' means a temporary interruption of work and payment of wages (either for a fixed or indefinite period of time), while the employment contract in other regards remains in force.
During the COVID-19 emergency, to facilitate businesses' adaptation to the new market situation, the right to temporary layoff has been temporarily extended to cover fixed-term employment contracts.
The instrument is available for employers who need to (temporarily) reduce their workforce due to lack of business.
The measure applies to situations where:
The employer may make the layoff decision unilaterally, or it may be negotiated with the employee(s). Employers are responsible for informing the employees about the lay-offs. The notice period preceding the layoffs is 14 days. Employers with a staff of at least 20 people must commence cooperation negotiations if the employer is considering layoffs. The temporary layoff can be either on a full-time basis, or it can involve a reduction in regular working hours. During the layoff period, the employee is allowed to work for other employers and/or is entitled to unemployment benefits. The maximum duration of an indefinite layoff (when work is permanently diminished) is undefined by law.
A fixed-term employee may only be temporarily laid off if she/he is substituting a permanent employee who could be temporarily laid off.
The following updates to this measure have been made after it came into effect.
31 January 2021 |
The temporary measures connected to COVID-19 ended 31 January 2021, unless otherwise is stated in collective agreements. |
The effects of the COVID-19 pandemic have significantly increased the number of employees that have been laid off either on a full-time basis or whose working hours have been shortened. In April 2020, the number of employees who were laid-off on a full-time basis was 164,000. This is 152,000 employees more than in April the year before. The number of employees whose working hours had been temporarily reduced was 20,300 which is 14,500 more than in April the year before.
In September, 2022, 14,600 were on a temporary lay-off, which is 16,900 less than in September 2021.
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
|
Applies to all businesses | Applies to all citizens |
Actors | Funding |
---|---|
National government
Public employment service |
Companies
Employees National funds |
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
Form | Direct consultation outside a formal body | Direct consultation outside a formal body |
Social partners' role in the implementation, monitoring and assessment phase:
Social partners were invited to leave a statement before parliamentary proceedings took place in 2000.
Trade unions found that employers took to the instrument too lightly without considering alternatives such as training their staff.
Trade unions have estimated that employers sometimes simply transfer the workload and make the non-laid-off employees work more without proper compensation.
Citation
Eurofound (2022), Temporary layoff, measure FI-2001-4/2544 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2001-4_2544.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.