European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
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The employer, in cooperation with employee representatives, must draw up and maintain a work community development plan for the systematic and long-term development of the work community. The drawing up and maintaining of the development plan is part of workplace dialogue around for instance the skills needs and skills development of employees. The plan is subject to changes in the case of redundancies due to economic or production-related reasons. In these cases, necessary amendments should be made in the development plan in connection to the dialogue and after the end of cooperation negotiations.
The work community development plan must include:
During the drawing up and maintaining of the work community development plan, attention should be paid, where appropriate, to:
The failure to draw up or maintain a work community development plan can lead to fines for the employer.
Twice a year, the employer must provide information to the employee representative on the employee structure and numbers, and number of employees with temporary or part time contracts.
If an employer announces the dismissals of at least ten employees on production or economic-related grounds, the employer is obliged to draw up an Action Plan during the start of cooperation negotiations. The Action Plan needs to, among other things, include the promotion of the use of unemployment services and education for the dismissed employees. In the case a dismissal concerns less than ten employees, a policy must be presented during the start of cooperation negotiations. The policy shall support the employees’ search for other jobs or training.
According to the Employment Contracts Act, if an employer needs more employees for tasks suitable for employees who are already working part-time for the employer, the employer must offer such employment to the part-time employees. If these part-time employees need further training in order to perform new duties, the employer is obliged, within reasonable limits, to provide such training.
An employer who has dismissed an employee on financial or production-related grounds is obliged to offer the employee training to promote employment. This applies to companies employing 30 people or more, and to employees who have been employed by the employer for an uninterrupted period of five years or more. National employee and employer representatives do however have the right to change this in Collective Agreements.
Furthermore, instead of dismissing or temporarily laying off an employee, the employer must, within reasonable limits, seek to arrange relevant training to the employee so as to allow the employee to stay at the company. However, an employer may furlough employees if such training cannot be reasonably arranged.
The provisions described above apply to companies with 50 employees or more. The final provision of offering supplementary employment with the necessary training to part-time employees applies to companies of all sizes.
Collective agreements may include sector specific provisions regarding training of the personnel.
Previously, employers could benefit from the right to training tax deduction. However, this tax incentive was removed 1 January 2025.
Eurofound (2015), Finland: Employers obligation to provide skill development plans or training, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/employers-obligation-to-provide-skill-development-plans-or-training/finland
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