Factsheet for case FI-2020-14/263 – 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)|
In accordance with section 9 Employment Contracts Act (55/2001), temporary lay-offs of fixed term employees are not possible unless "the employee is working as a substitute for a permanent employee and if the employer would be entitled to lay off the permanent employee if the permanent employee were working."
In order to make businesses' adaptation to the new market situation, the right to lay off has been temporarily extended to cover fixed-term employment contracts. The same conditions apply as in the case of lay-offs of employees with a permanent contract.
This measure covers all employers that need to temporarily lay off employees with fixed-term contracts during the period the temporary provisions are in force. Employees may be laid off when the potential of the employer to offer work to its employees has diminished (either temporarily or permanently) and the employer cannot provide the employee with other suitable work or training. Due to COVID-19, the notice period for lay-offs is shortened and during the period the temporary provisions are in force, employers need to be informed of the lay-off no more than five days before the lay-off begins.
Not applicable to the following employers: the State, municipalities, KELA, Åland Government, Evangelical Lutheran Church or Orthodox Church.
This measure does not involve any direct financial support but it makes adaption of workers to the new market situation easier as the right to lay-off is extended to fixed-term contracts.
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. Extending the right to lay off to cover employees on a fixed term contract was part of this set of proposed measures.
In May 2020, the peak-level social partners proposed to the Government that the duration of the temporary amendments to labour law should be extended 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), Temporary layoffs of employees on a fixed-term contracts, case FI-2020-14/263 (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.