The following legislative changes took effect on 1 June 2026. According to the Finnish Government, the objective of the changes is to lower hiring barriers and to enhance the operating environment for SME companies.
Fixed-term employment contracts
Employers may now enter into a fixed-term employment contract without a justified reason if it is the first employment relationship between the parties, or if no employment relationship has existed between the parties within the five years preceding the contract. The maximum duration of such a fixed-term employment contract is one year. Moreover, both the employer and the employee may terminate a contract concluded without a justified reason once it has been in force for at least six months.
Lay-off notice period & re-employment obligation
The duration of the notice period for lay-offs has been shortened. As of 1 June 2026, the lay-off notice must be given at least seven days in advance, down from the previous fourteen days. Moreover, the re-employment obligation now applies only to employers with fifty or more employees. Please note, however, that applicable collective bargaining agreements may contain stricter terms regarding notice periods or re-employment obligations that override the new rules.
Should you have any questions relating to the above legislative changes or employment law in general, do not hesitate to contact us via email (contact@wdlal.com). You can also contact us on WhatsApp & WeChat (+358 50 3754 096).