Entrepreneurs’ right to labour market subsidy and more flexible lay-offs and redundancy negotiations extended until year end

According to the Yrittäjägallup survey conducted by Suomen Yrittäjät, 42% of employers have taken advantage of the temporarily shorter redundancy negotiation processes possible during the coronavirus crisis. It is likely that President Niinistö will sign the amendments into law on 26 June, after which they will enter into force on 1 July.

Suomen Yrittäjät made a proposal to the government to extend the temporary amendments to labour legislation until year end. The trade unions made a similar proposal.

Vice President Labour Market and Legal Affairs at Suomen Yrittäjät Janne Makkula says, “It’s important that the temporary legislation is being extended. However, it should apply to all businesses regardless of the different collective bargaining agreements in force in various sectors.”

The amendments make lay-offs and redundancy negotiations more flexible.

The purpose of the legislative amendments is to make it easier for companies to adjust their labour needs in the wake of coronavirus.

Companies may complete lay-off negotiations in as little as five days and give notice of lay-offs in five days. Normally, such negotiations last from 14 days to six weeks.

In addition, companies can now temporarily lay-off a fixed-term employee or cancel an employee’s contract during probation on production and financial grounds. Further, the period during which the employer must re-hire an employee dismissed on production and financial grounds has been temporarily extended to nine months, as opposed to the normal three months. These temporary amendments concern the private sector.

Suomen Yrittäjät asked entrepreneurs for their views on the temporary amendments to lay-offs and the Act on Co-operation within Undertakings in its Yrittäjägallup in May. Sixty-five per cent of employer entrepreneurs hoped that the temporary amendments to lay-offs and redundancy procedures due to coronavirus would become permanent.

Entrepreneurs’ right to labour market subsidy extended — TE Office will be in touch if the entrepreneur continues to need support

Since 8 April, entrepreneurs have temporarily been entitled to labour market subsidy (työmarkkinatuki) because of a sudden, surprising drop in demand caused by coronavirus.

These temporary amendments to the Unemployment Security Act are now set to be extended to 31 December.

If you have had no work in your company or the situation has not otherwise changed because of coronavirus by 1 July, the TE Office will contact you to check on the situation. To receive labour market subsidy as an entrepreneur, your full-time business activities must have ended, or your monthly income from your business must be less than €1,089.67. (If there is more than one entrepreneur running the business, the average income of each must be below this limit.)

Further information: Entrepreneur unemployment security, Kela website (in Finnish)

TE Services: Entrepreneur: If your right to labour market subsidy is extended (in Finnish)

Original Finnish article updated on Wednesday 24 June at 14:18: Information added about TE Office contacting entrepreneurs if need for support continues.

toimitus (at) yrittajat.fi