Amendment to Employment Contracts Act

New Legislation Enacted

An amendment to the Employment Contracts Act was passed by the Finnish Parliament, with an effective date of July 1, 2019. The amendment adds the amount of employees employed by the relevant employer to the circumstances to be considered by an employer when assessing whether there is a proper and weighty reason for terminating an employee’s employment contract on grounds arising from the employee or related to the employee's person. The practical impact of the amendment is, however, expected to be minor and the threshold for dismissal will continue to be high even for small employers.

Amendments to Annual Holidays Act Effective on April 1, 2019

Proposed Bill or Initiative

Amendments to the Annual Holidays Act were passed by the Finnish Parliament, with an effective date of April 1, 2019, to ensure compliance with EU case law. Under the Act, employees have the right to four weeks of paid annual leave, even if they have been absent from work due to sickness or medical rehabilitation. Additionally, employees whose annual holiday has been postponed due to incapacity for work will have the right to their summer holiday during the holiday period and their winter holiday before the start of the next holiday period, with some exceptions.

New National Incomes Register Applicable to All Employers on January 1, 2019

Upcoming Deadline for Legal Compliance

As of January 1, 2019, employers must report all wages/salaries directly to the Incomes Register (in Finnish: “tulorekisteri”), a national online database of incomes information maintained by the Finnish Tax Administration. The information should be reported via a technical interface or the incomesregister.fi e-service. All wages shall be reported to the Incomes Register no later than five days after their payment date.