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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.

Factsheet for measure FI-2020-14/265 Updated – measures in Finland

Termination of employment during trial period for financial and production-related reasons

Työsopimuksen purkaminen koeajalla taloudellisen tai tuotannollisen perusteen vuoksi

Country Finland , applies nationwide
Time period Temporary, 01 April 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Flexibilisation and security
Author Amanda Kinnunen (Oxford Research) and Eurofound
Measure added 03 April 2020 (updated 10 July 2020)

Background information

Neither the Employment Agreement Act (2001/55) nor the Seafarers’ Employment Contracts Act (756/2011) define acceptable grounds for cancellation of an employment relationship during the trial period. However, legal praxis shows that financial and production-related reasons have not been accepted as a ground for termination of employment during trial period but acceptable reasons to terminate employment during trial period have been those connected to employees' person.

In order to facilitate rapid adaptation of businesses to the decreased demand for services and products, the right of the employer to terminate of employment during trial period has been now temporarily extended to cover financial and production-related reasons.

Content of measure

This measure applies to cases where an employer needs to cancel an employment contract during a trial period for financial and production-related reasons.

Not applicable to the following employers: the State, municipalities, KELA, Åland Government, Evangelical Lutheran Church or Orthodox Church. These employers can cancel an employment contract during a trial period only due to reason related to person.

This measure does not involve direct financial support for employers but it seeks to make adaptation to the new market situation faster by giving the right to cancel an employment contract of employees who are on their trial-period due to production-related reasons.

Updates

The following updates to this measure have been made after it came into effect.

06 July 2020

In May 2020, the peak-level social partners proposed to the government that the duration of the package of policy measures that was adopted in March 2020 shall be extended until the end of 2020.

In June 2020, the Parliament accepted the Government's proposal to extend the duation of this measure until 31 December 2020.

Use of measure

No information to date.

Target groups

Workers Businesses Citizens
Employees in standard employment
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Social partners jointly
No special funding required

Social partners

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:

  • Unknown
  • Main level of involvement: Peak or cross-sectoral level

Involvement

In March 2020, the peak-level social partners (Confederation of Finnish Industries, the Confederation of Unions for Professional and Managerial Staff in Finland, the Central Organisation of Finnish Trade Unions and the Finnish Confederation of Professionals STTK) 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 terminate employment during trial period for financial and production-related reasons was part of the proposed measures.

In May 2020, the peak-level social partners proposed to the Government these measures to be extended until the end of 2020.

Views and reactions

No information available.

Sources

  • 26 March 2020: Hallituksen esitys eduskunnalle laeiksi työsopimuslain, merityösopimuslain ja yhteistoiminnasta yrityksissä annetun lain 51 §:n väliaikaisesta muuttamisesta (tem.fi)
  • 31 March 2020: Lomautusten ilmoitusaika ja yhteistoimintaneuvotteluiden kestoaika lyhenevät väliaikaisesti (tem.fi)
  • 14 May 2020: Labor market organizations agree on layoffs and unemployment security (Työmarkkinakeskusjärjestöt sopuun lomautuksista ja työttömyysturvasta) (ek.fi)
  • 05 June 2020: Government proposal HE 92/2020 vp (Hallituksen esitys HE 92/2020 vp) (www.eduskunta.fi)

Citation

Eurofound (2020), Termination of employment during trial period for financial and production-related reasons, measure FI-2020-14/265 (measures in Finland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FI-2020-14_265.html

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