Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

Termination of Employment Convention, 1982 (No. 158) - Finland (Ratification: 1992)

The Committee notes the information contained in the Government's report for the period ending May 1999.

Article 2. 1. With reference to previous comments, the Government explains that Article 9, sections (1) and (2) of the State Civil Servants Act lists the conditions under which a fixed-term contract is permissible, and that Article 56 of the Act states that if a fixed-term contract is not justified under Article 9(1) or (2) and the employer terminates the employment, the worker is entitled to a severance allowance of a minimum of six months' salary and a maximum of 24 months' salary. The Committee requests a copy of this Act, including the most recent amendments, as the copy available in the Office contains amendments only up to 1989.

2. The Government states that it has temporarily amended the Employment Contracts Act for the period from February 1997 through December 1999 to permit the use of fixed-term contracts when demand is unstable for the services in an enterprise. The amendment also removes the prohibition on "chains of contracts" but does not specify whether this measure is also temporary. The Finnish Confederation of Salaried Employees (STTK) considers that the abuse of fixed-term contracts has increased because it is left to the discretion of the employer to determine whether he or she falls within this exception. The Committee would appreciate receiving further information on whether this amendment to the Employment Contracts Act is allowed to expire on 31 December 1999 or is renewed (and if renewed, the Committee requests a copy), whether the lifting of the prohibition on chains of contracts is temporary, and whether consultation with the organizations of employers and workers concerned took place prior to adopting the amendment. It also asks the Government to provide further information on what body determines whether demand for services in an industry is sufficiently unstable for this exception to be invoked.

3. The Central Organization of Finnish Trade Unions (SAK) alleges that there is a high rate of evasion of the laws protecting job security in the hotel and restaurant industries due to contracting out of labour and the use of fixed-term contracts on a rotating basis. The SAK alleges that a substantial number of workers are pressured into becoming self-employed as a means of evading the protection against unjustified dismissal. The Committee asks the Government to provide details on what safeguards exist to prevent recourse to fixed-term contracts or involuntary self-employment, with the aim of avoiding the protection resulting from the Convention, as required by Article 2, paragraph 3.

4. The STTK also points out that the Government has instituted a policy of allowing long-term unemployed workers to be hired on fixed-term employment contracts of at least six months' duration without any work-related grounds. The Committee notes that the use of fixed-term contracts for a limited period in such cases may be justified as part of a policy which attempts to balance the goals of protecting employment and reducing long-term unemployment. However, the Committee stresses that the Government should make every effort, in consultation with workers' and employers' organisations, to minimize the cost to the individuals directly affected. The Committee would appreciate receiving more detailed information on this policy, including its legal basis and the process by which it is implemented, the number of such unemployed persons engaged on fixed-term contracts, the maximum length of use of fixed-term contracts in such instances, and its impact.

Article 11. The SAK alleges that "stand-by" workers (engaged on a part-time basis) can be laid off without notice. The Committee asks the Government to clarify whether part-time workers are also entitled to notice before termination of employment.