Article

1333/2021: sec. 9, 16, 17, 19, 20, 21, 25, 38, 44. Ch. 8. 335/2007: Ch. 3. 1233/2013: Ch. 5. 449/2007: Sec. 4, 5, 7-9

Description

There is no official definition of 'collective dismissal'. The four acts referred to here define the terms of dismissal and other cooperation procedures in different types of organisations. The employer is obliged to negotiate with the employees whenever the employer considers measures which may lead to notice of terminations or lay-offs and affect one or several employees.

The employer must give notice before the start of the cooperation negotiations so as to allow the employee representatives to properly prepare for the negotiations. The negotiations are generally carried out between the employer and employee representatives, but also the concerned employee(s) may participate. The employer must provide the employee representatives with:

• information regarding the grounds of the intended measures;
• initial estimates of numbers of employees affected;
• principles determining which employees will be affected; and
• a time estimate of the implementation of the measures.

The employer must also notify the public employment services (PES) of the intended measures, and in cooperation with the PES investigate available public services to support employment. At the end of the cooperation negotiations, the employer must present a report on its intended actions to the employee representatives.

There is no strictly defined minimum for company size or number of employees affected for a collective dismissal. Previously, companies employing at least 20 employees had to follow a cooperation procedure for a dismissal to be valid, while smaller companies were not bound by this obligation. The minimum negotiation period varied with company size and the number of affected employees.

From 1 July 2025, legislative amendments to the Finnish Cooperation Act (Yhteistoimintalaki, 1333/2021), raised the threshold from 20 to 50 employees for full application of the Act, while companies with 20–49 employees must comply with certain obligations. Minimum negotiation periods are now 7 days or 3 weeks, depending on the matters to be negotiated and company size.

Commentary

The amendments coming into effect from 1 July 2025 aim to reduce administrative burdens and improve all companies’ ability to respond to changes in their operating environment, with future changes potentially addressing board-level employee representation.

Additional metadata

Cost covered by

None

Involved actors other than national government

National government

Involvement (others)

None

Thresholds

Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Sources

• Watson Wyatt (2006) Employment Terms &Conditions Report Europe Volume I, Brussels, Belgium
• Act on Cooperation within Finnish and Community-wide Groups of Undertakings (335/2007)
• Laki yhteistoiminnasta suomalaisissa ja yhteisönlaajuisissa yritysryhmissä (335/2007)
• Laki yhteistoiminnasta valtion virastoissa ja laitoksissa (1233/2013)
• Laki työnantajan ja henkilöstön välisestä yhteistoiminnasta kunnissa (449/2007)
• Ministry of Employment and the Economy (2018), 'Yhteistoimintalain uudistamista valmisteleva työryhmä asetettu'. 21 December.
• Yhteistoimintalaki (1333/2021)
• Co-operation Act (1333/2021)