Littler Global Guide - Finland - Q4 2019

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Minimum Age for Continued Unemployment Allowance Rises

New Legislation Enacted

Author: Antti Rajamäki, Counsel - Dottir Attorneys, Ltd.

The minimum age for continued unemployment allowance for unemployed persons born on 1961 and thereafter will rise to 62 years. An unemployed person can receive unemployment allowances for a maximum of 500 days. However, an aged unemployed person is entitled to continued unemployed allowance also after the 500 days if he or she has filled certain age limit before fulfillment of the 500 allowance days. As of January 1, 2020, the age limit for unemployed persons born on 1961 or thereafter will raise from 61 to 62.

New Working Hours Act

New Legislation Enacted

Author: Antti Rajamäki, Counsel - Dottir Attorneys, Ltd.

As of January 1, 2020, the new Working Hours Act will be in force. The main reforms and amendments expand the possibilities and flexibility to organize the regular working hours.

Employment of Laid-Off Employee Did Not Lapse Automatically Due to Disability Pension

Precedential Decision by Judiciary or Regulatory Agency

Author: Antti Rajamäki, Counsel - Dottir Attorneys, Ltd.

On December 12, 2019, the Supreme Court of Finland ruled that the employment of a laid-off employee did not lapse automatically due to a full disability pension. Instead, after the full disability pension was granted, the employee terminated his employment. At the time of termination, the employee had been laid-off over 200 days. Under these circumstances and pursuant to Chapter 5, Section 7, Subsection 3 of the Finnish Employment Contracts Act, the employee was entitled to his notice period salary. This ruling now regulates this kind of situation, which the Employment Contracts Act does not expressly regulate.

A Working Committee Set Up to Update Compensation for Noncompetition

Proposed Bill or Initiative

Author: Antti Rajamäki, Counsel - Dottir Attorneys, Ltd.

The Finnish Ministry of Economic Affairs and Employment has set up a working committee to update the regulation concerning an employer’s obligation to compensate employees’ noncompetition periods. Currently, the compensation obligation concerns noncompetition periods exceeding six months. The government’s purpose is to limit the use of noncompetition clauses in employment agreements where the legal preconditions for the noncompetition obligation are clearly not met.

A1 Certificate Enabled through New Electronic Service

Important Action by Regulatory Agency

Author: Antti Rajamäki, Counsel - Dottir Attorneys, Ltd.

On November 25, 2019, the Finnish Center for Pensions launched a new electronic service through which employees and employers can apply the A1 certificate for posted employees. The A1 certificate shows which country’s social security law is applied to an employee while he works abroad and to which country the employer should pay the social security contributions. The new service enables the download of the certificate into the employee’s mobile device and can be received even within the day of filing the application. The service is offered in Finnish, Swedish and English.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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