Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Amendments to Employment Contract Act Clarify Definition of Employment Relationship

New Legislation Enacted

Author: Samuel Kääriäinen, Partner – Dottir Attorneys Ltd

Amendments to the Employment Contracts Act became effective on July 1, 2023. Among other things, the amendments clarify the definition of the employment relationship, making it more explicit in ambiguous and unclear situations where the legal nature of employment is subject to interpretation, particularly when distinguishing between an employment relationship and work performed as an entrepreneur (self-employment).

The law provides factors to consider, taking into account the conditions of work, the circumstances under which the work is performed, the intentions of the parties regarding the nature of the legal relationship, and other factors affecting the actual position of the parties in the legal relationship.

Wage Subsidy Reform, Effective as of July 1, 2023

New Legislation Enacted

Author: Samuel Kääriäinen, Partner and Head of Employment – Dottir Attorneys Ltd

Amendments have been confirmed in the following laws: Act on Public Employment and Business Service, Act on the Municipal Experiment on Promoting, the Employment Contracts Act and Unemployment Security Act, all of which came into force on July 1, 2023. These legislative changes are driven by the overarching objective outlined in the previous government program, which is to enhance the utilization of wage subsidies within the private sector.

The primary aim of the wage subsidy system is to facilitate the employment of individuals with diminished work capacity or those in disadvantaged positions. Furthermore, this reform introduces employment support for individuals aged 55 and above.

New Government Program (2023-2027) Introduces Major Plans on Employment Legislation

Trend

Author: Samuel Kääriäinen, Partner and Head of Employment – Dottir Attorneys Ltd

Finland's new right-wing government has published Prime Minister Petteri Orpo's government program for 2023-2027. The new government program contains multiple reforms favoring employers, which have provoked negative reactions from trade unions and will result in striking in Finland. The program contains several proposals that undermine workers' rights with an aim to lift up Finnish economy, such as loosening the use of fixed-term employments, reducing some requirements related to terminations of employment, enhancing the use of local workplace agreements and restricting the right to strike. The legislative changes would be introduced one by one, the earliest taking effect in 2024.