Employment Minister Matias Marttinen speaking during Parliament’s oral question session in Helsinki. Photo: Markku Ulander / Lehtikuva
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Finland’s government has agreed to allow fixed-term employment contracts of up to 12 months without requiring employers to provide a justification, according to Helsingin Sanomat.
Employment Minister Matias Marttinen confirmed the agreement, which will form part of a wider labour market reform programme. Under current legislation, employers must justify offering fixed-term contracts instead of permanent employment. Acceptable reasons have included parental leave cover or a temporary increase in workload.
The proposed change removes the requirement for such justifications for contracts up to one year in length. After that point, a valid reason would again be necessary if the employer wishes to continue the arrangement.
The government’s intention is to ease hiring processes, especially for small and medium-sized businesses, and to reduce unemployment. According to figures published this summer, over 20 percent of Finns aged 15–24 in the labour force were unemployed, a seven-point increase from the previous year.
The proposal now proceeds to the Finnish Council of Regulatory Impact Analysis before any formal legislative submission to Parliament.
Concerns had been raised during internal negotiations about possible misuse of the relaxed rules. The Finns Party expressed particular worry about so-called “contract cycling”, where the same role is filled repeatedly by different workers on consecutive fixed-term contracts.
According to Marttinen, this risk has been addressed in the final proposal. If an employer wishes to continue the same or similar work after a 12-month fixed-term period, the job must be offered to the person who previously held the role. This requirement will remain in place for four months following the end of the initial contract.
The obligation applies regardless of whether the next role is fixed-term or permanent. This is intended to prevent the rotation of short-term workers through a single post.
“There will be no loophole where companies can bypass the rules by simply swapping out employees,” Marttinen told Helsingin Sanomat.
He added that the reform aims to offer more job opportunities to young workers and those outside the labour market.
The agreement also includes plans to reduce the layoff notice period to one week and to remove the re-employment obligation for businesses with fewer than 50 employees. The current re-employment rule requires companies to offer returning work to laid-off employees within a defined timeframe.
The government’s full legislative package on labour law changes is expected to be presented to Parliament in stages over the coming months.
HT
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Source: www.helsinkitimes.fi
