Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

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

1. Article 2, paragraph 3, of the Convention. Adequate safeguards against recourse to fixed-term employment contracts. In reply to its 1999 observation, the Committee notes the information contained in the Government’s report for the period ending May 2006 and the State Civil Servants’ Act (No. 750 of 2004) attached to its report. The Committee particularly notes that the Employment Contracts Act (No. 55 of 2001) entered into force on 1 June 2001. With reference to previous comments, the Government states that this Act repealed the provision temporarily extending the possibilities of concluding employment contracts for a fixed-term when demand was unstable for the services in an enterprise (No. 56 of 1997).

2. The Central Organisation of Finnish Trade Unions (SAK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) argue that the protections afforded by the Convention and the Employment Contracts Act are being eroded by the following practice. Employers are hiring employees to work for customers. The employees are hired on fixed-term contracts aligned to the length of the contract between the employer and the customer. The fixed-term contracts are justified on this basis even though the customer’s need for employees is ongoing. According to the SAK and the AKAVA, in this case the provisions on temporary work relations are eluded.

3. With reference to previous comments, the Government explains that according to the Public Employment Services Act (No. 1295 of 2002), the purpose of subsidized employment is to improve the labour market position of a person by promoting placement at work and improving vocational and other skills. Fixed-term contracts are used to support particularly the employment of the long-term unemployed, young persons and disabled workers to prevent the lengthening of periods of unemployment and to level out regional differences in unemployment. In this regard, the Government indicates that at the end of June 2006, 38,300 persons had been employed through the Labour Administration’s employment subsidy measures, 1,400 less than the figures of the previous year. Of those that had been placed, 6 per cent were working for the State, 25 per cent for municipalities and 69 per cent in the private sector, and the objective is to further increase the share of the private sector. The Finnish Confederation of Salaried Employees (STTK) alleges that fixed-term contracts are to a great extent used in the public sector (20–30 per cent of the public sector’s employment relationships) despite the fact that the Employment Contracts Act requires hiring persons for a permanent employment relationship when the need for labour is permanent. The Committee asks the Government to indicate what safeguards have been provided to guarantee fixed-term contracts are not used in practice with the aim of avoiding the protection resulting from the Convention, providing examples of how the notion of “justified reasons” in the Employment Contracts Act is used in public and private sectors. In this respect, the Committee would appreciate receiving information on the subsidized employed persons, the maximum length of use of fixed-term contracts in such instances, and their impact.

4. Article 13. Consultation of workers’ representatives concerning terminations of employment for economic, technological, structural or similar reasons. The Committee notes that the Government indicates in its report that the Ministry of Labour Committee, discussing the reform of the Act on Co-operation within Undertakings (725/1978), proposes the adoption of a new Act. The Committee asks the Government to keep it informed about any legislative change on the consultation of workers’ representatives on terminations of employment for economic, technological, structural or similar reasons.

5. Parts IV and V of the report form. Practical information on the application of the Convention. Please continue providing available information on the manner in which the provisions of the Convention are applied in practice, including any relevant judicial decision involving questions relating to the application of the Convention.