At a glance
- In our monthly Finland Employment Law bulletin our employment lawyers highlight relevant news and trends on the Finnish employment market scene.
- The bulletin intends to provide high-level knowledge and insight.
Collective labour agreement negotiations have commenced
In general, during this negotiation round the purpose would be to agree on salary settlements for 2023. If no settlement is reached, a party to the collective agreement may give notice to terminate the agreement. Technology and chemical sector have started the negotiation round and service sector will follow. In the technology sector, no salary settlement was reached, and the trade unions of all employee groups have given termination notices to terminate the collective agreements. In chemical sector, the trade union for blue collars have given notice to terminate the agreement. This negotiation round is expected to be very difficult given the past few years and the current economic situation as well as the 5-year salary settlement reached in the municipal sector that exceeded the general salary level.
Termination due to sexual harassment
One could ask whether the current societal atmosphere and changed attitudes on what is considered as unacceptable behaviour at workplaces could affect how cases concerning termination due to sexual harassment are assessed in courts. However, a recent decision from Helsinki Court of Appeal reminds employers that termination grounds in a sexual harassment case shall be assessed as a whole considering the same aspects as in connection with any termination case and sexual harassment does not constitute an automatic right to terminate an employment without a prior written warning.
New legislation to promote employment rate of employees at least the age of 55 and their well-being at work
As of 1 January 2023, if an employee is made redundant and if the employee at the time of termination is at least the age of 55 and the employment has lasted 5 years (continuously or with max. 30 days’ interruptions in total), the employee shall be entitled to longer employment leave during notice period compared to younger employees or employees with shorter service. The employee shall also be entitled to change security allowance amounting to 1 month’s salary and training arranged by the TE Office. The value of the training shall amount to 2 months’ salary. The security allowance and training shall be financed by employers through unemployment insurance contributions. Upon termination the employer must inform the employee of the above-mentioned rights. In addition, an employee’s right to part-time work shall be strengthened if the employee is at least 55 years old.
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