10.6092/issn.1561-8048/10950
The amendments of labour and social law provisions adopted due to Covid-19 in Finland reflect balancing the interests of the employers and the employees. The measures adopted have been agreed with labour market organisations. On one hand, the Government has aimed to maintain jobs by broadening the possibilities for temporary lay-off, on the other hand, the livelihood of employees has been guaranteed by unemployment benefits. Also, the flexibilization of the employment contract during probationary period has been accompanied with the stricter rules concerning the re-employment of the dismissed employee. Finally, the Government has broadened the unemployment security to entrepreneurs, that has especially contributed to the livelihood of self-employed entrepreneurs.
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Annika Rosin
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COVID-19 and Labour Law: Finland
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COVID-19 and Labour Law: Finland                                                Italian Labour Law e-Journal
Annika Rosin                                                                   Special Issue 1, Vol. 13 (2020)
annros@utu.fi                                                    Covid-19 and Labour Law. A Global Review
                                                                                             ISSN 1561-8048
                                                              https://doi.org/10.6092/issn.1561-8048/10950




                    COVID-19 and Labour Law: Finland
                            Annika Rosin*

                                                Abstract
     The amendments of labour and social law provisions adopted due to Covid-19 in Finland reflect
     balancing the interests of the employers and the employees. The measures adopted have been
     agreed with labour market organisations. On one hand, the Government has aimed to maintain
     jobs by broadening the possibilities for temporary lay-off, on the other hand, the livelihood of
     employees has been guaranteed by unemployment benefits. Also, the flexibilization of the
     employment contract during probationary period has been accompanied with the stricter rules
     concerning the re-employment of the dismissed employee. Finally, the Government has
     broadened the unemployment security to entrepreneurs, that has especially contributed to the
     livelihood of self-employed entrepreneurs.


     Keywords: Covid-19; Labour Law; Lay-offs; Unemployment Benefits; Probationary Period; Re-
     employment.




 1. General Framework

    The Finnish government has adopted restrictions and recommendations during the
 coronavirus epidemic in order to slow down and prevent the spread of the coronavirus in
 Finland, to safeguard the resource capacity and resilience of the healthcare system, and to
 protect people, especially those who are the most at risk. On 16 March 2020, the
 Government announced, that there is a state of emergency in the country. Several measures
 were adopted and at the beginning these were supposed to be in force until 13 April 2020.
    The premises of schools, educational institutions, universities and universities of applied
 sciences as well as civic education and other liberal education institutes were closed, and
 contact teaching was suspended. As an exception, pre-primary education organised in
 schools and contact teaching for grades 1–3 continued. Public gatherings were limited to no
 more than ten persons, and it was recommended to avoid spending unnecessary time in
 public places.
    All national and municipal museums, theatres, cultural venues, libraries, National
 Archives, hobby and leisure centres, swimming pools and other sports facilities, youth
 centres, clubs, organisations’ meeting rooms, day care services for the elderly, rehabilitative


 *
     Lecturer, University of Turku, Finland.
    Annika Rosin                                                                        Italian Labour Law e-Journal
                                                                                       Special Issue 1, Vol. 13 (2020)
                                                                          Covid-19 and Labour Law. A Global Review
                                                                                            Section: National Reports




work facilities and workshops were closed. Private and third-sector operators and religious
communities were advised to do the same.
    Visits to housing services for the elderly and other at-risk groups were prohibited. Also,
visitors to care institutions, health care units and hospitals, with the exception of
asymptomatic family members of children and critically ill individuals, family members of
those in hospice care and spouses or support persons in the maternity ward, were banned.
Public-sector employers were recommended to instruct their employees to work from home
if possible. Persons over 70 years of age were recommended to avoid contact with other
persons to the extent possible. Non-urgent activities in healthcare and social welfare services
were reduced1.
    In the case of critical personnel, exceptions were made to the provisions of the Working
Hours Act and the Annual Holidays Act in both the private and public sector, to oblige
trained professionals in healthcare and social welfare and internal security, to perform work
as necessary. The provisions concerning overtime work, weekly rest periods, breaks and
annual leave are not applied if this is inevitable and if this does not jeopardize of the health
and safety of the employee2.
    Finland’s borders were closed. Necessary travel for work and to access other necessary
services were permitted across the northern and western borders. Freight and goods traffic
continued as usual. Finns and permanent residents in Finland returning from abroad were
placed in quarantine-like conditions for two weeks. On 7 April 2020, the Government
restricted travel across borders even more, only essential travel to work and other necessary
traffic is allowed. Employees crossing the border need to have a certificate from their
employer stating that the work is essential. Shipping companies operating to Finland from
Sweden, Estonia and Germany were recommended to stop the sale of passenger tickets.
    On 27 March, the Government restricted the movement to and from the Uusimaa region.
Restrictions entered into force on 28 March and lasted until 15 April 2020. The residents of
Uusimaa had to stay in the Uusimaa and the residents of other regions were not allowed to
visit Uusimaa. These restrictions did not apply if movement was necessary for official
activities, travel for work, the performance of military service or any other statutory
obligation, or for a compelling personal reason.
    On 31 March 2020, the Government issued a decree restricting the operations of
restaurants throughout the country. All restaurants were closed starting from 4 April 2020.
The restrictions remain in force until the end of May and are applied to all restaurant
operations except for preparing food for take away and for delivery by food couriers.




1 Finnish Government, Restrictions during the coronavirus epidemic, https://valtioneuvosto.fi/en/information-on-
coronavirus/current-restrictions. (accessed 29 April 2020).
2 Sisäministeriö, Valmiuslain soveltaminen mahdollistaa poikkeamisen työaika-, vuosiloma- ja työsopimuslain säännöksistä

pelastustoimessa ja hätäkeskustoiminnassa, 20 March 2020, https://valtioneuvosto.fi/artikkeli/-
/asset_publisher/valmiuslain-soveltaminen-mahdollistaa-poikkeamisen-tyoaika-vuosiloma-ja-tyosopimuslain-
saannoksista-pelastustoimessa-ja-
hatakeskustoiminnassa?_101_INSTANCE_LZ3RQQ4vvWXR_groupId=1410869 (accessed 29 April 2020).

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    Annika Rosin                                                                     Italian Labour Law e-Journal
                                                                                    Special Issue 1, Vol. 13 (2020)
                                                                       Covid-19 and Labour Law. A Global Review
                                                                                         Section: National Reports




    On 6 April 2020, the Government decided to continue most of the restrictions until 13
May 2020. Restrictions concerning public gatherings of more than 500 persons stay in force
until 31 July 20203.
    In 20 March 2020 the Government also decided about initial measures to secure people’s
livelihoods and liquidity of companies in COVID-19 situation. The proposals of the labour
market organisations were taken into account in adopting the measures. The measures are
temporary and as a rule, remain in force for three months4. The overview of these measures
is given below.


2. Flexibilization of the regulation concerning lay-offs

    The Government adopted several amendments concerning lay-offs. On one hand the use
of lay-offs was flexibilized, on the other hand the unemployment security of employees being
laid off was strengthened.


2.1 Flexibilization of the regulation concerning lay-offs

   According to Finnish Employment Contracts’ Act laying off means temporary
interruption of work and remuneration on the basis of an employer decision or an agreement
made on the employer's initiative, while the employment relationship continues in other
respects.5 In the case of lay-off, the employment relationship stays in force, but the
performance of work as well as the payment of remuneration is suspended temporarily. After
the period of lay-off ends, the employment relationship continues in the same conditions as
before the lay-off6.
   The employer is entitled to lay off an employee if 1)the employer has a financial or
production-related reason for terminating the employment contract; or 2) the work or the
employer's potential for offering work have diminished temporarily and the employer cannot
reasonably provide the employee with other suitable work or training corresponding to its
needs; the work or the potential for offering work are considered to have diminished
temporarily if they can be estimated to last a maximum of 90 days. Without the existence of
abovementioned reasons, the employer and the employee may, during the employment




3 Finnish Government (1).
4 Ministry of Economic Affairs and Employment, Minister of Employment Tuula Haatainen: Flexibility and security to
labour market from Government’s actions, 20 March 2020,
 https://tem.fi/en/article/-/asset_publisher/hallituksen-paattamat-toimet-tuovat-joustoa-ja-turvaa-
tyomarkkinoille (accessed 29 April 2020).
5 Chapter 5, Section 1, Työsopimuslaki 55/2001,

 https://finlex.fi/en/laki/kaannokset/2001/en20010055.pdf (accessed 29 April 2020).
6 Kairinen, M., Koskinen, S., Nieminen, K., Ullakonoja, V., Valkonen, M., Työoikeus, juridiikka. Helsinki:

WSOYpro., 2013.

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    Annika Rosin                                                                       Italian Labour Law e-Journal
                                                                                      Special Issue 1, Vol. 13 (2020)
                                                                         Covid-19 and Labour Law. A Global Review
                                                                                           Section: National Reports




relationship, agree on a lay-off for a fixed period if this is needed in view of the employer's
operations or financial standing7.
    Regularly the employer is not entitled to lay off an employee working in a fixed-term
employment relationship. This is allowed only if the employee is working as a substitute for
a permanent employee and if the employer would be entitled to lay off the permanent
employee if the permanent employee were working8.
    Since 1 April 2020 the employer can lay off a fixed-term employee under the same
conditions as an employee with an employment contract of indefinite duration. As an
exception fixed-term employees working for the state, local municipalities, the Social
Insurance Institution of Finland, church or the Government of Ahvenanmaa can be laid off
only if the employee is working as a substitute for a permanent employee and if the employer
would be entitled to lay off the permanent employee if the latter was working9.
    According to the Employment Contracts’ Act the employer is obligated to notify
employees of a lay-off in person a minimum of 14 days before the lay-off begins. On 20
March 2020 the Government decided to shorten the notification period concerning lay-offs
to five days from the present 14 days. Since 1 April 2020 the employer is required to inform
the employee of the lay-off no later than five days before the lay-off begins. In case the
employer is the state, local municipalities, the Social Insurance Institution of Finland, church
or the Government of Ahvenanmaa, the notice period of 14 days still applies10.
    However, the Employment Contracts’ Act enables the national employer and employee
associations to derogate from the notice period foreseen in law and agree on different notice
period11. This provision was not amended and employers are still allowed to deviate from
the notice period requirement to comply with collective agreements between national
employer and employee associations12.
    In addition to giving notice concerning lay-off, the employer is obligated to conduct co-
operation negotiations before lay-off. Normally, negotiations need to be conducted during
the period of 14 days, if the number of the employees working for the employer is less than
10 or if the lay-offs last for maximum 90 days. If the employer employs more than 10
employees or the lay-offs last more than 90 days, the negotiations need to be conducted
during six weeks. If the number of employees is regularly 20, but less than 30, the period of
conducting negotiations is 14 days13.




7 Chapter 5, Section 2, Työsopimuslaki 55/2001, https://finlex.fi/en/laki/kaannokset/2001/en20010055.pdf
(accessed 29 April 2020).
8 Chapter 5, Section 2, Työsopimuslaki.
9 Chapter 5, Section 2 (31.3.2020/167), Työsopimuslaki 55/2001.
10 Chapter 5, Section 4 (31.3.2020/167), Työsopimuslaki..
11 Chapter 13, Section 7, Työsopimuslaki.
12 Ministry of Economic Affairs and Employment, Notice period for temporary lay-offs and the duration of co-operation

negotiations will be shortened due to COVID-19, 26 March 2020, https://tem.fi/en/article/-
/asset_publisher/koronaviruksen-vuoksi-lomautusten-ilmoitusaikaa-ja-yhteistoimintaneuvotteluiden-
kestoaikaa-lyhennetaan (accessed 29 April 2020).
13 Chapter 8, Section 51, Laki yhteistoiminnasta yrityksissä 30.3.2007/334.



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     Annika Rosin                                                                  Italian Labour Law e-Journal
                                                                                  Special Issue 1, Vol. 13 (2020)
                                                                     Covid-19 and Labour Law. A Global Review
                                                                                       Section: National Reports




   Since 1 April 2020, the duration of co-operation negotiations regarding lay-offs will be
shortened from the current six weeks or 14 days to five days14. All abovementioned
amendments are in force until 30 June 2020.


2.2 Extended right to unemployment benefit during temporary lay-off

    According to Finnish Unemployment Security Act, the employee, who has been laid off
is regarded as an unemployed person and has a right to unemployment benefits15. Usually,
the employee has a right to unemployment benefits if she/he has been laid off by the
employer on the basis that the employer has a financial or production-related reasons16.
    In 9 April 2020 the Act was amended so that the employee has a right to unemployment
benefits both in the case of lay-off by the employer because of financial or production-related
reasons, and in the case of lay-off based on the agreement of the employer and the
employee17.
    The Act was also amended as regards the maximum time of the right to unemployment
benefits. Depending on the period, during which the person has been employed before
becoming unemployed, she/he has a right to receive unemployment benefits during 300 to
500 days. The days for which the person receives unemployment benefits because of being
laid off are reduced from the maximum number of benefit days18. According to the
amendment, the time for which the person has been receiving unemployment benefits
because of being laid off, is not taken into account in counting the maximum time of the
right to benefits19. These amendments are applicable from 15 April 2020 until 6 July 2020.
    On 31 March 2020 the amendment concerning the right of a laid off person to engage in
business activities or studies were adopted. Regularly the person does not have a right to
receive unemployment benefits if she/he is predominantly engaged in business activities or
studies20. According to the amendment this restriction is not applicable to laid off
jobseekers21. The amendment provides easier access to unemployment benefit to those who
study or engage in business activities while being laid off. If the person has income from
business activities, the Social Insurance Institution and the unemployment fund take this
income into account in the adjusted unemployment benefit22. The amendment is in force
from 1 April 2020 until 31 July 2020.


14 Chapter 8, Section 51 (31.3.2020/169), Laki yhteistoiminnasta yrityksissä.
15 Chapter 2, Section 1, Työttömyysturvalaki 30.12.2002/1290.
16 Chapter 1, Section 5, Työttömyysturvalaki.
17 Chapter 1, Section 5 (9.4.2020/214), Työttömyysturvalaki.
18 Hallituksen esitys HE 38 2020 vp Hallituksen esitys eduskunnalle laeiksi työttömyysturvalain,

työttömyysetuuksien rahoituksesta annetun lain ja työttömyyskassalain väliaikaisesta muuttamisesta.
19 Chapter 6, Section 7, Työttömyysturvalaki.
20 Chapter 2, Section 1; 4-16, Työttömyysturvalaki.
21 Chapter 2, Section 1; 4-16, Työttömyysturvalaki.
22 Ministry of Economic Affairs and Employment , Legislative amendment extends employees’ right to unemployment

benefit during lay-off and provides easier and quicker access to unemployment benefit, 31 March 2020 14.45,
https://tem.fi/en/article/-/asset_publisher/lakimuutos-laajentaa-lomautetun-oikeutta-tyottomyysetuuteen-
seka-nopeuttaa-tyottomyysetuuden-hakemista-ja-saamista (accessed 29 April 2020)

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     Annika Rosin                                                                      Italian Labour Law e-Journal
                                                                                      Special Issue 1, Vol. 13 (2020)
                                                                         Covid-19 and Labour Law. A Global Review
                                                                                           Section: National Reports




3. Improvements to the unemployment security of wage-earners

    Finnish Government has also decided to improve the unemployment security of wage-
earners. The amendments concerning the personal liability period in the case of
unemployment, the minimum obligatory employment period before the unemployment, and
the payment of unemployment benefits to entrepreneurs and freelancers were adopted.
    According to the Unemployment Security Act the person has no right to receive
unemployment benefits during the personal liability period. The personal liability period
lasts for five days. This provision was amended temporarily, and the amendment foresees
that the unemployment benefit is paid also for the personal liability period23.
    Another requirement to the receipt of unemployment benefits concerns the employment
period before becoming unemployed. A person has a right to unemployment benefits if
she/he fulfils the employment requirement. During the last 28 months the person needs to
be in an employment relationship for at least 26 weeks. The minimum obligatory period of
employment was also temporarily reduced, and now the person has a right to unemployment
benefits if she/he has been employed for 13 weeks24. Both, the amendment concerning
personal liability period, and the employment condition are in force from 15 April 2020 until
6 July 2020.
    The right to receive unemployment benefits has been broadened also to entrepreneurs.
According to the Unemployment Security Act regularly the person has no right to
unemployment benefits if she/he is primarily engaged in business activities as an
entrepreneur25. Temporarily, the entrepreneur (regardless of the type of her/his business
activity) is eligible for labour market support, if the following conditions are met: 1) the
entrepreneur’s full-time employment has ended, or the monthly income from the
entrepreneurial activities is less than EUR 1,089.67 per each entrepreneur, and 2) the full-
time work or the reduction in income is caused by coronavirus epidemic. The business
activities do not need to be ceased in order to receive labour market support26.
    The amendment is in force from 8 April 2020 until 30 June 2020. Nevertheless, labour
market support can be paid to entrepreneurs also retroactively. If the entrepreneur registers
as a jobseeker by 15 April 2020, she/he will be entitled to labour market support for the
period starting on 16 March27.




23 Chapter 11, Section 4b (20.12.2013/1049), Työttömyysturvalaki.
24 Chapter 5, Section 3, 3a, Työttömyysturvalaki.
25 Chapter 11, Section 4c, Työttömyysturvalaki.
26 Chapter 2, Section 5, Työttömyysturvalaki; Ministry of Economic Affairs and Employment, Act on the Right

of Entrepreneurs to Unemployment Security enters into force on 8 April 2020, 7 April 2020, https://tem.fi/en/article/-
/asset_publisher/laki-yrittajien-oikeudesta-tyottomyysturvaan-tulee-voimaan-8-4-2020 (accessed 29 April
2020).
27 Ministry of Economic Affairs and Employment, ibid



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     Annika Rosin                                                              Italian Labour Law e-Journal
                                                                              Special Issue 1, Vol. 13 (2020)
                                                                 Covid-19 and Labour Law. A Global Review
                                                                                   Section: National Reports




4. Changes in the probationary period and re-employment obligation

    Amendments have been made also to the legislation concerning probationary period.
According to the Employment Contracts’ Act, the employer and the employee may agree on
a trial period of a maximum of six months starting from the beginning of the work. The
probationary period is extended if the employee has been absent from work because of family
leave or incapacity for work. In the case of fixed-term work, the maximum probationary
period can comprise half of the length of the contract, but no more than six months28.
    During the probationary period, the employment contract may be terminated by either
party. The employment contract may not, however, be terminated on discriminatory or
otherwise inappropriate grounds with regard to the purpose of the probationary period29.
There are no notice periods foreseen for the termination of the contract during the
probationary period, and the contract ends immediately30.
    The main purpose of probationary period is to enable both parties of the employment
relationship to estimate whether the work is suitable to the employee and whether the
relationship satisfies the parties. The employment relationship can be terminated by the
parties during probationary period only because of the reasons that respond to the purpose
of this period. Other grounds are not acceptable. As a rule, also financial or production-
related reasons are not acceptable grounds for the termination of the contract during
probationary period31. In Finnish court practice those grounds have been regarded as
acceptable only if they are straightforwardly related to the performance of working tasks by
the employee. For example, if the employee cannot develop the production in such a way
that it becomes profitable, the contract can be terminated without notice periods during
probationary period32.
    Temporarily the provision on probationary period has been amended so that the
employment contract can be terminated also for financial or production-related reasons. An
exception is made for the employees employed by the state, local municipalities, the Social
Insurance Institution of Finland, church or the Government of Ahvenanmaa, whose
employment contract cannot be terminated during the probationary period for financial or
production-related reasons33.
    To balance the easier termination process, the employer’ s obligation to the re-
employment of the employee was also extended. Regularly, if the contract is terminated by
the employer on financial or production-related grounds, and the employer needs new
employees within four months of the termination for the same or similar work, the employer
is obligated to offer work to this former employee if the employee continues to seek work
via an Employment and Economic Development Office. If the employment relationship has
lasted for at least 12 years, the re-employment period is six months34.

28 Chapter 1, Section 4, Työsopimuslaki.
29 Chapter 1, Section 4, Työsopimuslaki.
30 Kairinen, M.et al (6)
31Kairinen, M.et al (6)
32 Judgement S 97/495 of the Court of Appeal of Helsinki from 26 June 1997.
33 Chapter 1, Section 4 (31.3.2020/167), Työsopimuslaki.
34 Chapter 6, Section 6, Työsopimuslaki.



https://doi.org/10.6092/issn.1561-8048/10950                                                                7
     Annika Rosin                                                          Italian Labour Law e-Journal
                                                                          Special Issue 1, Vol. 13 (2020)
                                                             Covid-19 and Labour Law. A Global Review
                                                                               Section: National Reports




   With temporary amendment, the re-employment obligation was extended to 9 months.
This amendment applies to all situations in which the employment relationship is terminated
by the employer because of financial or production-related reasons, not only to terminations
during probationary period. In the case of the employees of the state, local municipalities,
the Social Insurance Institution of Finland, church or the Government of Ahvenanmaa, the
period of re-employment is still four or six months35.
   Amendments concerning probationary period and re-employment obligation are in force
from 1 April 2020 until 30 June 2020.


5. Conclusion

    The amendments of labour and social law provisions adopted due to Covid-19 in Finland
reflect balancing the interests of the employers and the employees. The measures taken have
been agreed with labour market organisations. On one hand, the Government has aimed to
maintain jobs by broadening the possibilities for temporary lay-off, on the other hand, the
livelihood of employees has been guaranteed by unemployment benefits. Also, the
flexibilization of the employment contract during probationary period has been accompanied
with the stricter rules concerning the re-employment of the dismissed employee. Finally, the
Government has broadened the unemployment security to entrepreneurs, that has especially
contributed to the livelihood of self-employed entrepreneurs.




Copyright © 2020 Annika Rosin. This article is released under a Creative Commons
Attribution 4.0 International License




35   Chapter 6, Section 6 (31.3.2020/167), Työsopimuslaki.


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