Factsheet for measure
FI-2005-27/2494
–
Updated
– measures in Finland
'Change Security' model
Muutosturva
Background information
The 'Change Security' system was created to promote quick and flexible re-employment for employees at risk of dismissal for economic reasons. The 'Change Security' model was expanded through the tripartite labour market agreement signed in 2016.
In addition to the duties of employers connected to the 'Change Security' model,Chapter 6 of Employment Contracts Act (Työsopimuslaki) [55/2001] stipulates that employers have a duty to rehire employees dismissed for economic reasons. The rehiring duty lasts four to six months depending on the duration of the employment relationship.
Content of measure
The scheme is available to employees who have been made or are at risk of being made redundant or temporarily laid off for economic reasons. An employee with a permanent contract must have a work history of at least three years in order to be covered.
Fixed-term employees are included if they have been employed by the same employer for a minimum of three consecutive years, or have been employed by the same employer for a minimum of 36 months within the last 42 months; or have a work history of a minimum of five years within the past seven years, with one or multiple employers.
The scheme also applies to employees who resign after being temporarily laid off for at least 180 consecutive days.
The following rules apply when an employer with least 30 workers on a regular basis dismisses an employee who has been employed by the employer consecutively for at least five years before the end of the employment relationship:
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the employer has a responsibility to provide coaching, training or education aiming for re-employment of employees who have been dismissed due to economic reasons;
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the value of the education or training must correspond to one monthly salary;
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the employee is entitled to occupational health care services provided by the employer for six months after the employee’s work duties have ended.
Updates
The following updates to this measure have been made after it came into effect.
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01 January 2023
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In April 2022 the Parliament approved a government proposal that introduced a new 'change security' model for all employees aged 55 or older, who are made redundant for economic or production related reasons and who have worked for the same employer for a minimum of five years.
The new scheme includes a 'change security' allowance, 'change security' training and an extended re-employment leave. The aim of the new model is to speed up the re-employment of people who are 55 years or older and who have been made redundant.
The employer is obliged to inform the employee of their right to the 'change security' allowance and training upon redundancy.
The new 'change security' is financed by the Employment Fund, through a specific 'change security' fee paid by the employer dismissing staff together with payments collected by all employers.
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01 January 2022
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In the beginning of 2022, the system has been strenghtened further. The Act on Cooperation within Undertakings (Yhteistoimintalaki) [1333/2021] was updated and the rights of employees strenghtened. Before the employer takes a decision on matters that l impact the status of staff, such as a reduction in the workforce, they must consult the workers' representatives or employees.
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Use of measure
Among eligible persons, 35% find employment within three months, and 53% within a year from having been made redundant. The scheme offers individual guidance to relevant training and other services, meaning that the proportions of persons left outside the labour force are marginal. Between 2005-2015 there were 8,500 companies affected by dismissal of 10 or more people and almost 126,000 persons benefited from the scheme.
Target groups
Actors and funding
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Actors
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Funding
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National government
Public employment service
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Companies
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Consultation through tripartite or bipartite social dialogue bodies
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Consultation through tripartite or bipartite social dialogue bodies
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Peak or cross-sectoral level
Involvement
Social partners have been consulted through the tripartite body of the Employment and Equality Committee of the Parliament.
Views and reactions
In the statement of the tripartite Employment and Equality Committee of the parliament states that improving the protection of workers who have been made redundant or are threatened with redundancy, as well as promoting re-employment during the period of redundancy are important.
Sources
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28 December 2012: Laki julkisesta työvoima- ja yrityspalvelusta (916/2012)
(www.finlex.fi)
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26 November 2013: Ålander, T., Sillanpää K., Korhonen, S., Manninen, V. (2013), 'Yhteistyöllä turvaa muutokseen. Muutosturvan toimintamallin vaikuttavuutta ja toimivuutta koskeva tutkimus', Ministry of Employment and the Economy, 34/2013 (pdf, in Finnish).
(tem.fi)
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01 January 2022: Laki yhteistoiminnasta yrityksissä (334/2007)
(www.finlex.fi)
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17 January 2022: Akavan erityisalat (2022), 'Yhteistoimintalaki on uudistettu, uusi laki voimaan 1.1.2022'
(www.akavanerityisalat.fi)
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08 July 2022: Työsopimuslaki (2001/55)
(finlex.fi)
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08 July 2022: Sosiaali- ja terveysministeriö (2022), 'Lainsäädäntöön muutoksia 55 vuotta täyttäneiden työllisyysasteen nostamiseksi'
(stm.fi)
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31 October 2022: TE Services, 'Change security for the employer'
(tyomarkkinatori.fi)
