Finland
Amendments concerning fixed-term employment contracts
Impact date: The proposed date of entry into force is 1 January 2026 Amendments will allow employers, in certain situations, to conclude fixed-term employment contracts without a justified reason that would normally be required. Under the proposal, a fixed-term contract of up to one year could be made at the employer’s initiative if it is the first employment contract between the parties, or if at least five years have passed since their previous employment relationship ended, even where the employer’s need for labor is permanent. The contract could be renewed twice within a one-year period, provided the total duration does not exceed one year, and before the end of the fixed term the employer would have to give the employee a justified explanation regarding the possibility of a permanent position or, for a justified reason, further fixed-term employment.
Employer implications/action needed No action is required at this stage, but if the reform enters into force, employers should review and potentially adjust recruitment practices, particularly for new hires where long-term need is uncertain.
Employer risk N/A
Lowering the threshold for terminating employment
Impact date: The proposed date of entry into force is 1 January 2026 Amendments are proposed to the threshold for terminating employees with permanent employment contracts. Currently, an employer may terminate a permanent employment contract only for a proper and weighty reason. The Government aims to amend the regulation so that a proper reason alone would be sufficient for termination.
Employer implications/action needed None currently.
Employer risk N/A
Shortening the notice period for lay-offs
Impact date: The proposed date of entry into force is 1 January 2026 Amendments are proposed to the notice period for lay-offs. When an employer lays off an employee, the employee must be notified personally. Under the current rules, such notification must be given at least 14 calendar days before the lay-off begins.
If the proposed amendments are approved in the form presented, the notice period for lay-offs would be shortened to 7 days. If the employer’s normally or generally applicable collective bargaining agreement were to contain provisions on a longer lay-off notice period than the statutory seven days, it would be possible to agree at workplace level that only the statutory notice period needs to be observed.
Employer implications/action needed None currently.
Employer risk N/A
Amendments to the re-employment obligation after dismissal
Impact date: The proposed date of entry into force is 1 January 2026 The obligation on re-employment may be changing. At present, if an employer has dismissed an employee on financial or production-related grounds, or in connection with a reorganization procedure, and the employer requires new employees for the same or similar duties within four months of the end of the employment relationship, the employer is obliged to offer the position to the dismissed employee, if the dismissed employee is registered as a jobseeker. However, if the employment relationship has continued without interruption for at least 12 years by the time of its termination, the re-employment period is six months.
If the proposed amendments are approved in the form presented, the re-employment obligation would apply only to employers who regularly have at least 50 employees in an employment relationship. Companies should, however, continue to comply with any provisions in collective bargaining agreements regarding the re-employment obligation.
Employer implications/action needed The amendment may benefit small employers by removing the need to assess whether a role triggers the re-employment obligation and allowing them to hire the most suitable candidates for new roles without regard to earlier redundancies.
Employer risk N/A
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