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Key policies in the government programme

Here you can read the key policies in the government programme concerning labour legislation and unemployment security.

  • Provisions will be laid down in the Act on Mediation in Labour Disputes so that the general level of pay adjustments cannot be exceeded by a settlement proposal issued by the National Conciliator’s Office or a conciliation board. 
  • In accordance with the Nordic practice, the exercise of the right to political industrial action will be limited to protests lasting no longer than one day.
  • The Government will amend the legislation so that solidarity action will become subject to the duty to notify in accordance with the proportionality assessment and the Act on Mediation in Labour Disputes. In future, solidarity action that is proportionate in relation to the objectives and the effects of which only affect the parties to the labour dispute, will be legal.
  • The level of a compensatory fine for unlawful industrial action will be increased, with the maximum amount set at EUR 150,000 and the minimum amount set at EUR 10,000. 
  • An employee who continues a strike which the Labour Court has found to be an unlawful industrial action will be subject to a penalty payment of EUR 200 for participating in an industrial action found to be illegal.
  • The Government will expand the conditions for local bargaining by removing from labour legislation bans on local bargaining in non-organised companies that comply with a generally applicable collective agreement.
  • Labour legislation will be amended to allow a company-specific collective agreement to derogate, by agreement, from the same provisions of labour legislation from which a derogation is now only possible by means of a national collective agreement. The above-mentioned possibilities to derogate from a company-specific collective agreement will require that the collective agreement has been concluded from the employees’ side either by a national employee association or an employee association belonging to it.
  • Local bargaining will be made possible at company level so that a shop steward, an elected representative, another representative elected by the personnel or the entire personnel can be a party to the agreement. Provisions on the protection of an elected representative and another representative elected by the personnel for a fixed term will be laid down in law at the same level as they are currently laid down for shop stewards. Opportunities for training and adequate access to information will be ensured for the persons elected for the tasks.
  • The duties of the Labour Court will be expanded so that it will handle, in a separate format, disputes on the interpretation of local bargaining in collective agreements concluded in the so-called field of general applicability. 
  • The current provisions of the Employment Contracts Act on fixed-term employment contracts will be amended so that in future, an employment contract could be concluded for a fixed term of one year without a special reason. At the same time, the legislation will ensure that the amendment does not lead to the unjustified use of consecutive fixed-term contracts.
  • The regulation on the grounds for termination of a person will be amended so that in future, terminating an employment contract based on proper grounds [instead of the current proper and weighty grounds] would be sufficient.
  • The requirement of the Employment Contracts Act concerning the notice period for a lay-off will be shortened to seven days [currently 14 days], which can be applied regardless of the provisions of the collective agreement.
  • Sick pay will be amended so that the first day of sickness absence would be the employee’s own liability for which the employer would not be obligated to pay unless otherwise agreed in the collective agreement or employment contract. The day of own liability would not apply to sick leaves of five days or longer, or to cases where the incapacity for work is due to an occupational accident or occupational disease.
  • The requirements of the Act on Co-operation within Undertakings concerning minimum negotiation times for change negotiations will be shortened by half.
  • The Government will expand the scope of application of the Act on Co-operation within Undertakings to the level permitted by EU provisions, i.e. to companies and corporations regularly employing 50 or more employees.
  • The obligation to re-employ an employee under the Employment Contracts Act will be abolished in companies and corporations that regularly employ fewer than 50 persons. This statute can be applied regardless of the provisions of the collective agreement.
  • The job alternation leave system will be abolished.
  • The adult education benefit will be abolished.

Earnings-related unemployment security

  • The prior work requirement for earnings-related unemployment security will be extended to 12 months. Subsidised work will not count towards the prior work requirement. 
  • The level of earnings-related unemployment security will be staggered from the current level so that the security will fall to 80 per cent of the original level after eight weeks of unemployment and to 75 per cent after 34 weeks of unemployment.
  • The phasing of holiday compensation will be restored. 
  • The waiting period will be restored from five days to seven days.