04 May Amendments to the Finnish Employment Contracts Act
Certain amendments to Finnish labor law were introduced in the beginning of the year. The changes that are related, in particular, to the conclusion and termination of employment relations add flexibility, but at the same time the obligations of companies that employ over 30 people increase.
The trial period
The maximum length of the trial period was extended from four months to six months, in addition to which the employer was provided a right to extend the trial period over the maximum, in case the employee has been absent from work for a significant period of time during the trial period owing to disability or parental leave.
Further, if a temporary agency worker is hired by an employer where the worker has worked earlier in the capacity of a temporary agency worked, the maximum period of the trial period shall be reduced by the period for which the worker worked with the said employer.
Fixed-term contracts with long-term unemployed people
After the amendments, concluding a fixed-term employment agreement with a long-term unemployed person does not require a qualified reason, if said person has been registered as an unemployed person for the last twelve months. Under any other circumstances concluding a fixed-term employment agreement requires a qualified reason as earlier.
Obligation to readmit former employees
The period during which an employer has an obligation to readmit a former employee was shortened from nine months to four months. However, if the employment relation of the employee had lasted for at least twelve years, the period constitutes six months.
Obligation to support training that promotes employment
Following the amendments introduced in the beginning of the year, the employer has an obligation to cover costs of training that supports an employee’s chances to get employed, if the employee was dismissed on financial or production-related grounds and provided that the employer employs at least 30 people and the employee’s employment relation had lasted for at least five years. If the employer fails to do so, the employee is entitled to damages equaling the cost of the training. The obligation to cover costs of training shall also be included into the employer’s personnel and training plan during year 2017.
MK-Law assists with preparation of different types of employment agreements and in connection with termination of employment as well as provides advice in other types of questions related to employment issues.