Finland
Changes to work-based residence permits
Impact date: The amendments entered into force on 11 June 2025. Parliament has approved amendments to the Aliens Act that more closely tie work-based residence permits to employment. Termination of employment has previously allowed for the cancellation of a residence permit. However, there has been no regulation on the length of unemployment that would lead to cancellation, nor has the monitoring been systematic.
After the reform, employees holding a residence permit based on employment in Finland have three months to find a new job if their employment ends prematurely. If they do not find new employment or no other grounds for residence exist, the permit will be revoked. Instead of three months, certain groups of employees, such as specialists (including holders of the EU Blue Card), have six months to find new employment. After the reform, a foreign employee residing in Finland on a work-based residence permit will be able to change jobs to any occupation officially recognized as a labor shortage sector nationwide, without needing a new permit. At present, labor shortage sectors include, for example, general medical practitioners and nurses.
Employer implications/action needed In the future, employers must notify the Finnish Immigration Service if an employee’s work-based residence permit ends prematurely. Previously, employers only had to report hiring. Failure to notify may lead to sanctions. Notifications are easiest to submit electronically via the Enter Finland e-service and must be made within 14 days of the end of the employment relationship. However, employers do not need to report the end of gig or additional work if the employee performs it alongside the employment linked to their residence permit.
Amendments to the Co-operation Act
Impact date: The amended Co-operation Act entered into force on 1 July 2025. Amendments to the Co-operation Act have been ratified. The aim is to reduce the administrative burden on companies and to improve the business environment.
Before the amendments, the Co-operation Act applied to employers that regularly employ at least 20 people. After the amendments entered into force, the threshold was raised to 50 employees, although employers with 20 to 49 employees are still subject to certain obligations outlined in the Act. Further, the minimum duration of change negotiations was reduced. Change negotiations must be held in several situations, including where the employer is planning to terminate employment relationships on financial or production-related grounds. Before, change negotiations lasted 14 days or six weeks, depending on the matters that are negotiated. Now, change negotiations last seven days or three weeks.
Employer implications/action needed As the reform entered into force, employers need to take account of the updated thresholds and requirements explained in the summary above.
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