Factsheet for case FI-2020-14/256 – Updated – measures in Finland
|Country||Finland , applies nationwide|
|Time period||Temporary, 01 April 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Flexibilisation and security
|Author||Amanda Kinnunen (Oxford Research) and Eurofound|
|Case created||03 April 2020 (updated 10 July 2020)|
|Related ERM support instrument|
In order facilitate fast adaptation of businesses to the weakened demand of services and products, amendments to the Employment Contracts Act (2001/55) have been made. These amendments shorten the notice period for temporary lay-offs.
In Finland, employers are responsible for informing about temporary lay-offs. In normal circumstances, the notice period for temporary lay-offs is 14 days. As a result of the COVID-19 outbreak, the Act was amended in March 2020 and therefore the notice period will be 5 days between April and June 2020.
Many collective agreements further regulate the notice period for temporary lay-offs and these regulations laid down in collective agreements shall apply. In accordance with Chapter 13, this regulation may differ from the notice period regulated in Employment Contracts Act. Even during the period the temporary provision is in force, employers shall follow the rules set in the collective agreement.
However, approximately 90% of employees who work for employers who are members to peak-level employers's organisation Confederation of Finnish Industries EK are covered by collective agreements that have been temporarily adapted to follow this legislative amendment.
This measure covers all employers that need to temporarily lay off personnel.
Employees may be laid off when the potential of the employer to offer work has diminished (either temporarily or permanently) and the employer cannot provide the employee with other suitable work or training.
The right to shortened notice period is not applicable to the public sector employers.
There are no direct monetary aspects involved in this measure. However, considering that during the notice period companies must pay employees' salary whereas during lay-offs the state and unemployment funds pay out unemployment allowance (or labour market subsidy) for the employees, the shortened notice period has significant financial benefits for companies as it allows them to faster adapt to the COVID-19 related market disturbances.
No information to date.
Employees in standard employment
||Does not apply to businesses||Does not apply to citizens|
Social partners jointly
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
In March 2020, the peak-level social partners jointly proposed a set of actions for the Finnish Government. These proposed measures seek to amend labour law and facilitate adaptation of businesses to the new circumstances. Shortening the lay-off notice period was among the proposed measures.
In May 2020, the peak-level social partners jointly proposed the extension of the duration of these temporary measures until the end of 2020.
The peak-level social partners stress that this measure is part of the wider package of measures (proposed by them in March 2020) and amendments to labour law that include both measures that facilitate adaptation of businesses to the new market situation but also measures that support employees who are being either temporarily or permanently dismissed.
Eurofound (2020), Shortened notice period for temporary layoffs, case FI-2020-14/256 (measures in Finland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.