A gardener working. Photo: Anni Ågren / Lehtikuva
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The Finnish government has proposed changes to labour law that would allow fixed-term employment contracts to be signed without justification under limited conditions. The move has drawn sharp criticism from both employers and employee organisations.
According to the draft proposal, employers could offer a fixed-term contract without a specific reason when hiring a person for the first time, or if five years have passed since the last employment with the same employer.
The reform would permit up to three such contracts, provided their total duration does not exceed 12 months. If a contract lasts more than six months, it would be subject to standard termination procedures.
At the end of each contract, employers would be required to explain whether a permanent contract could be offered or whether continued fixed-term employment has a valid reason. The aim is to reduce misuse, such as discrimination linked to pregnancy or parental leave.
In parallel, the notice period for layoffs would be reduced from 14 days to seven. Employers and employee representatives would also be able to agree locally on even shorter notice periods, overriding collective agreements.
The obligation to rehire laid-off workers would only apply to employers with at least 50 staff.
Katariina Sahlberg, legal counsel at the Central Organisation of Finnish Trade Unions (SAK), said the changes threaten job security without creating economic benefit.
“The government’s proposals are shocking from the employee’s perspective. They have already cut labour rights severely, and this adds to the damage,” Sahlberg told Yle.
She warned that the reform is likely to increase the number of fixed-term contracts, weakening long-term employment prospects.
“The law should be withdrawn. It does not create jobs or help the economy. It’s simply a new way to penalise workers,” Sahlberg said.
Miia Kannisto, senior specialist at Akava, said the changes would undermine the role of permanent contracts as the default employment model.
“If implemented, these measures would cause more harm than good. They should be abandoned. If pursued, safeguards must be added to prevent increased discrimination,” Kannisto said.
Employer organisations also expressed dissatisfaction, but for different reasons.
The Confederation of Finnish Industries (EK) argued that the proposal is too limited and does not fully match the government’s original plan outlined in its programme.
Katja Leppänen, a labour market expert at EK, said the draft law includes restrictions that dilute its intended purpose.
“The proposal helps lower the barrier to hiring, but it only goes halfway. Several limitations have been added that were not in the government programme,” Leppänen said.
These include restricting the changes to only first-time employment, introducing a right for employees to resign without cause, and adding a new reporting requirement for employers.
EK stated that international agreements such as ILO conventions and the European Social Charter do not prevent Finland from implementing the original reform in full.
The Finnish Entrepreneurs Association welcomed the direction of the proposal but also called it too cautious.
Atte Rytkönen-Sandberg, director at the association, said the layoff notice reduction was a particularly important step.
“Shortening the notice period for layoffs is a significant reform. It helps companies respond quickly to changing conditions. Making fixed-term hiring easier is also important,” Rytkönen-Sandberg said.
The proposal was released for consultation by a tripartite working group from the Ministry of Economic Affairs and Employment. All major labour market organisations—SAK, Akava, STTK, EK, KT, and the Finnish Entrepreneurs—filed dissenting opinions.
HT
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Source: www.helsinkitimes.fi
