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.

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)