New amendments proposed for fixed-term employment, lay-off notice periods and re-employment periods (update)

At a glance

• The Ministry of Social Affairs and Health has set up a working group to prepare a draft government proposal to amend legislation relating to justified reasons for fixed-term employment; lay-off notice periods; and re-employment periods. 
• The legislative project is part of Prime Minister Petteri Orpo’s Government Programme.
• The working group's mandate ended on 30 April 2025 and the draft  government proposal was published on 2 June 2025.
• According to the proposal, fixed-term employment contracts may be concluded for one year without a specific reason; notice periods for lay-offs will be reduced to seven days; and re-employment obligations will be removed from companies and associations with fewer than 50 employees.
• The estimated week of presentation for the official government proposal is week 35 of 2025. The new legislation is due to enter into force on 1 January 2026.

Update: 17 September 2025

The estimated week of presentation for the official government proposal is now week 41 of 2025.