Background information

In accordance with chapter 6 of the Employment Contract Act (2001/55) and chapter 7 of the Seafarers’ Employment Contracts Act (756/2011), employees shall offer re-employment to former employers that have been dismissed due to financial and production-related reason in case the employer needs to hire to positions similar to those the dismissed employee had. This applies to all permanent contracts that have been terminated due to financial and production-related reasons within the past 4 or 6 months, depending on length of the contract. This obligation seeks to protect employees from unemployment.

This obligation has been temporarily extended to nine months in order to protect employees affected by the COVID-19 outbreak.

Content of measure

This measure applies to all cases of dismissals made due to financial and production-related reasons that have taken place during a time when the temporary provisions were in force. This applies to all employments, regardless of their duration.

Not applicable to the following employers: the State, municipalities, KELA, Åland Government, Evangelical Lutheran Church or Orthodox Church. These employers follow four or six months re-employment obligation.

Furthermore, in accordance with chapter 13 of the Employment Contract Act (2001/55), collective agreements do not have to follow the re-employment obligation set by the Employment Contract Act. In other words, the re-employment obligation regulated by collective agreements may be shorter or longer. It is up to employer's organisations and trade unions to make temporary changes to regulation on re-employment obligation.

This measure does not direct involve financial support but it seeks to protect employees who have been dismissed due to the effects of the COVID-19 pandemic from long-term unemployment and facilitate their return to the labour market when the situation normalises.

Use of measure

No information to date.

Target groups

Workers	Businesses	Citizens
Employees in standard employment Unemployed	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	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

Despite the temporary legislative amendments, employers shall follow the rules regulated in the collective agreements. In accordance with chapter 13 of the Employment Contract Act (2001/55), re-employment obligation regulated in collective agreements may differ from re-employment obligation regulated in the Employment Contract Act.

However, many trade unions and employer’s organisations have temporarily changed collective agreements to match the temporary legislative amendments. Approximately 90% of employees working for members of Confederation of Finnish Industries EK are covered by collective agreements that have been changed accordingly.

Views and reactions

In March 2020, the peak-level social partners (the Confederation of Unions for Professional and Managerial Staff in Finland, the Central Organisation of Finnish Trade Unions SAK, the Finnish Confederation of Professionals STTK and the Confederation of Finnish Industries EK) 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 and to improve the financial situation of temporarily or permanently laid off employees. Extending the employee re-employment obligation to nine months was part of the proposed measures.

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

Sources

• 26 March 2020: Hallituksen esitys eduskunnalle laeiksi työsopimuslain, merityösopimuslain ja yhteistoiminnasta yrityksissä annetun lain 51 §:n väliaikaisesta muuttamisesta (tem.fi)
• 31 March 2020: Onko työnantajan takaisinottovelvollisuuteen tullut muutoksia? (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)