Office workers in Helsinki. Photo: Olivia Ranta / Lehtikuva
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The Finnish government’s proposal to ease the use of fixed-term employment contracts has triggered strong criticism from employee organisations, who warn of growing job insecurity and increased risk of discrimination, particularly against women.
The planned legislation would allow employers to offer fixed-term contracts of up to one year without providing a specific reason. Under current law, a valid justification, such as temporary cover for a permanent employee, is required.
According to the government, the reform is intended to lower the threshold for hiring and improve employment levels.
The tripartite working group preparing the proposal, which includes government, employer, and employee representatives, is nearing the end of its mandate. However, , fixed-term contracts are more common among women. In 2023, 19 percent of female wage earners and 14 percent of men were in fixed-term jobs. The largest age group seeking permanent work while on fixed-term contracts was 25–34.
Kopra warned that the policy could also lead young people to delay starting families.
“A lack of job continuity makes it harder to plan for children,” he said.
Employer representatives have defended the proposal. Anne Kiiski, head of labour market negotiations at the Commission for Local and Regional Government Employers (KT), said the reform supports employment and responds to real-life needs.
“Fixed-term contracts can also benefit employees. Students, for instance, often want short-term summer jobs,” she said.
Kiiski argued that Finnish labour law already protects those on family leave.
“I don’t see how this would increase discrimination. Labour legislation provides strong protection for pregnant employees and those returning from leave,” she said.
The reform is expected to include safeguards to prevent contract chaining, where employers repeatedly renew fixed-term contracts to avoid granting permanent status.
“One way to avoid chaining might be to limit the no-reason contract to a single use per employee,” Kopra suggested.
He added that the change might be more appropriate if limited to companies hiring their first employee, but the current proposal applies to all employers.
KT warned against increasing administrative burdens for employers, which it said would deter hiring.
The government intends to send the draft law out for public consultation in summer.
HT
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Source: www.helsinkitimes.fi
