FTC regulated: Yes

Valid reasons for FTC use: objective and material reasons

Remarks

Sec. 3, chap. 1, ECA: "justified reason".

Maximum number of successive FTCs: no limitation

Remarks

Although there are no statutory limitations on the number of successive contracts, the ECA states that "consecutive fixed-term contracts concluded without any justified reason shall be considered valid indefinitely" (sec. 3(2), chap. 1 ECA).

Maximum cumulative duration of successive FTCs: no limitation

Remarks

No statutory limitation on the maximum cumulative duration of successive FTCS. However the ECA states that "consecutive fixed-term contracts concluded without any justified reason shall be considered valid indefinitely" (sec. 3(2), chap. 1, ECA).

% of workforce under FTC: 14.6

Remarks

Source: Eurostat, annual average for 2009.
The figure refers to the percentage of employee with a contract of limited duration (= temporary job) of total number of employee aged 15-74 years.
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."

Maximum probationary (trial) period (in months): 4 month(s)

Remarks

Sec. 4, chap.1 ECA.
(6 months if the employer provides specific, work-related training for the employee over at least 4 months)

Obligation to provide reasons to the employee: Yes

Remarks

Sec. 2 & 3, chap. 9, ECA.

Valid grounds (justified dismissal): any fair reasons

Remarks

See: sec.1-3, chap. 7, ECA.
As a general condition, termination of employment cannot take place without a "proper and weighty reason". Two types of reasons are listed in the ECA: these are reasons connected with the employee's person (conduct, and capacity) and economic reasons.

Prohibited grounds: pregnancy, maternity leave, filing a complaint against the employer, temporary work injury or illness, race, sex, sexual orientation, religion, political opinion, nationality/national origin, age, trade union membership and activities, disability, language, parental leave, participation in a lawful strike, state of health, ethnic origin

Remarks

See:
* Sec. 2, chap. 2, ECA : Prohibition of discrimination.
* Sec. 2, chap. 7, ECA: Termination grounds related to the employee's person provides a list of invalid grounds.
* Sec. 9, chap. 7, ECA : Termination in the case of an employee who is pregnant or on family leave.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities

Remarks

* Workers' representatives:
Sec. 10, chap. 7, ECA: Dismissal of a "shop steward or elected representatives" based on individual grounds requires the consent of the majority of the employees whom he represents.
Economic dismissal of those representatives are authorized provided the job they occupy ceases completely and the employer has been unable to find another suitable job or to train the person for some other work.

* Pregnant women and employees on family leave: sec. 9, chap. 7, ECA deems the dismissal to be based on employee's pregnancy or family leave and places the onus on the employer to prove that the dismissal is based on another reason.
In addition, sec. 9, chap. 7 ECA states that the employer can terminate the employment relationship with employee on maternity, special maternity, parental or child care on economic grounds only in case of complete cessation of activities.

Notification to the worker to be dismissed: no specific form required

Remarks

Sec. 4, chap. 9, ECA: A notice on termination of an employment contract shall be delivered to the employer or its representative, or to the employee, in person. If this is not possible, the notice may be delivered by letter or electronically.
However, if so requested by the employee, the employer must notify the employee without delay in writing of the date of termination of the employment contract and of the grounds for termination or cancellation known by the employer to have caused the termination (sec. 5, chap.9 ECA).

Notice period:

Remarks

According to sec. 3, chap. 6, ECA, the length of the notice period varies between 14 days and 6 months, according to the length of service of the employee, as follows:
* 14 days if the employee has up to 1 year of service;
* 1 months if the employee has more than 1 and no more than 4 years of service;
* 2 months if the employee has more than 4 and no more than 8 years of service;
* 4 months if the employee has between more than 8 years and no more than 12 years of service.

tenure ≥ 6 months:

  • All: 14 day(s).

tenure ≥ 9 months:

  • All: 14 day(s).

tenure ≥ 2 years:

  • All: 1 month(s).

tenure ≥ 4 years:

  • All: 1 month(s).

tenure ≥ 5 years:

  • All: 2 month(s).

tenure ≥ 10 years:

  • All: 4 month(s).

tenure ≥ 20 years:

  • All: 6 month(s).

Pay in lieu of notice: Yes

Remarks

Sec. 4, chap. 6, ECA.

Notification to the public administration: No

Remarks

However, in case of a dismissal of a worker on economic grounds and if that worker has an employment history of at least 3 years with the same employer or with a different employer, the employer is obliged to notify the employment office. This obligation also applies when the worker has been in fixed-term employment for at least 3 consecutive years or at least 36 months during the preceding 42 months (Sec. 3a, chap. 9, ECA).

See also sec. 48 of the ACU, applicable only to undertakings employing at least 20 workers: When the employer proposes measures that may lead to termination (on economic grounds), he or she should also inform the employment office.

Notification to workers' representatives: No

Remarks

However, according to the Act on Co-operation within Undertakings (2007), notification to worker's representatives and negotiation are compulsory when the dismissal affects a single worker provided such dismissal is based on financial and productive grounds, and the undertakings employs at least 20 workers. (see sec. 44-53 ACU)

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): The ACU provides for a specific cooperation procedure applicable to dismissals on financial or productive grounds of one or several employees.
However, procedural requirements regarding information provided by the employer to the worker's representatives only apply to dismissal of over 10 workers over a period of 90 days.

Remarks

Sec. 44 ACU: scope of application of the cooperation procedures.
On the information requirements: see art. 47 ACU.

Prior consultations with trade unions (workers' representatives): Yes

Remarks

Sec. 45-51 ACU.
Note that section 47 differentiates information requirements based on the number of employees concerned by the dismissal (under or above 10 employees).
When the dismissal concerns less than 10 employees over a period of 90 days, information shall be directly given to the employees or their representatives if the employees so request.

Notification to the public administration: Yes

Remarks

Sec. 48 ACU: applicable to the economic dismissal of one or more employees.

Notification to workers' representatives: Yes

Remarks

Sec. 45-51 ACU on negotiation.
Sec. 53 ACU on communication of the employer's report regarding the decisions adopted on the basis of the negotiation.

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Sec. 49-50 ACU.

Priority rules for re-employment: Yes

Remarks

Sec. 6, chap. 6, ECA: preferential rehiring within 9 months of the dismissal.

Severance pay:

Remarks

No statutory severance pay.

Employers employing at least 30 workers must provide free vocational coaching or training courses to workers, which they have terminated based on economic reasons and which have worked for them for at least 5 years, sec. 13, chap. 7 ECA. This entitlement can be waived by collective agreement, sec 7(11), chap. 13 ECA.

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 2 years: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Notes / Remarks

Notes

No statutory severance pay or redundancy payment.

Compensation for unfair dismissal - free determination by court: No

Remarks

See: sec. 2, chap. 12 ECA.

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): * Groundless termination of employment: min. 3 months' pay and max. 24 months' pay.

* Failure to observe the procedural requirements applicable to economic dismissal: max. 30 000 EUR.

Remarks

* Compensation for groundless termination of employment: sec. 2, chap. 12 ECA.
The minimum amount of 3 months is not applicable to dismissals based on financial and production-related grounds or a reorganization procedure.
For shop stewards and elected representatives, the maximum amount is 30 months' pay.

* Failure to observe the procedural requirements applicable to economic dismissal: sec. 62 ACU.

Reinstatement available: No

Preliminary mandatory conciliation: No

Remarks

No statutory provision found.

Competent court(s) / tribunal(s): ordinary courts

Remarks

In Finland, individual labour disputes over rights are heard by ordinary courts as apposed to disputes connected with collective agreements which are dealt with by labour courts. (See Act on the Labour Court 646/19974)

Existing arbitration: No

Remarks

No statutory provision found.