Newsflash: New Labour Market Reforms
The new Finnish Government has announced new labour market reforms, which should come into force within the next four years, i.e. during the new Government’s term in office. The most important reforms include:
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possibility to conclude a one-year fixed-term contract without specific justification;
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grounds for termination on individual reasons will only require ‘proper reason’ (as opposed to the current ‘proper and weighty reason’);
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re-hiring obligation following a termination on collective grounds will be abolished for companies with fewer than 50 employees; and
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the scope of application of the Act on Co-operation within Undertakings will be raised from 20 to 50 employees.
Naturally, it is too early to tell how these changes will play out in practice as no available case law yet exists. However, it seems that the Government’s intention is to provide more flexibility for the employers to hire and fire employees.
More to follow once the preparatory work on the new reforms kick-off.
