Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Private Employment Agencies Convention, 1997 (No. 181) - Finland (Ratification: 1999)

Part V of the report form. Practical effect given to the Convention. The Committee notes the Government’s report received in October 2010 and the comments by the Central Organization of Finnish Trade Unions (SAK) and the Finnish Confederation of Professionals (STTK) attached to the Government’s report. The Government indicates that, in 2008, approximately 18,100 companies and public bodies and some 1,400 households used the services of private employment services. In comparison to 2007, the number of companies or public bodies using private employment services decreased slightly, whereas the number of household users increased. The peak in companies using hired labour was in 2004, when nearly 21,000 companies used hired labour. The number of temporary work agencies was approximately 100,000 in 2008, with temporary agency workers representing 3.7 per cent of the entire labour force. Approximately 388,000 employment contracts for temporary agency work were concluded in 2008 and the average duration of a temporary agency worker’s employment relationship was 32 days. In the same year, a total of 4,400 people were recruited through private employment agencies (direct recruitment). In 2007, the corresponding number was 7,400 people. Respectively, the number of people recruited as a result of temporary agency work was around 4,900 in 2008 and 5,800 in 2007. The Government further reports that although figures for 2009 were not available when the report was prepared, it was apparent that the activity of private employment agencies diminished significantly due to the recession. The Committee notes that the Private Employment Agencies’ Association, which includes the majority of private employment agencies operating in Finland, adopted a mandatory authorisation system for its members in the beginning of 2010. The Government reports that the system is challenging. Authorisation is granted by a board of representatives of employer and worker organizations and the Ministry of Employment and the Economy. The Government further indicates that it is anticipated that this approach will further simplify the operating principles of the private employment sector and enhance the reliability of its operations. The Committee notes that a tripartite working group conducted a research on temporary agency work and, on the basis of their report, four legislative amendments were drafted and entered into force in 2009. These amendments enhance the status of temporary agency workers, as they enhanced the legislation’s applicability with regards to the special characteristics of temporary agency work. In addition to legislative amendments, the tripartite working group prepared a guidebook on temporary work for temporary agency employers and workers. The Committee notes the comments by the SAK and STTK indicating that, despite the statistics maintained by the Ministry of Employment and the Economy, there is no information on whether the rights of temporary agency workers are being met. For instance, no information is available on how many temporary agency workers’ employment contracts are valid indefinitely and how many are fixed-term contracts. In the opinion of the workers’ organizations, information on the duration of employment contracts and other factors pertaining to the temporary agency worker would be required and would enable clarification of whether temporary agency workers are provided with sufficient protection as required by the Convention. The Committee would appreciate continuing to receive information relevant to the practical effect given to the Convention, including extracts from reports of the inspection services and information on the number of workers covered by the Convention.

Articles 11 and 12 of the Convention. Protections for workers and responsibilities of private employment agencies and user enterprises. In reply to the previous comment, the Government lists in its report the binding collective agreements on temporary agency work concluded during the reporting period. It also reiterates that the provisions of the Occupational Safety and Health Act, the Employment Contracts Act and of the new Annual Leave Act cover hired workers on the same terms as all other workers. The Government further indicates that due to the divided nature of the employer obligations related to temporary agency work, compliance with certain employer obligations related to temporary agency work may require cooperation between the temporary agency and the user enterprise. Unless cooperation and information exchange run smoothly, problems may arise, especially in situations where compliance with employer obligations is sanctioned. In this regard, the Committee notes that a special provision was added to the Employment Contracts Act concerning the notification obligation between the temporary agency and the user enterprise. The aim of this provision is to improve the concerned parties’ right to receive information and ensure that the temporary agency can meet its obligations as an employer. The Committee invites the Government to specify the manner in which adequate protection is guaranteed for workers employed by private employment agencies with regard to compensation in case of insolvency and statutory social security benefits (Article 11(e) and (i)). Please also indicate the respective responsibilities of private employment agencies and user enterprises with regard to statutory social security benefits (Article 12(d)).

Article 13. Cooperation between the public authorities and private employment agencies. The Committee notes that the partnership project for finding new modes of cooperation between public and private employment services was brought to an end as a special project in 2008. This cooperation produced common principles of operation related to, for example, job advertising. The partnership project did not succeed in discovering new approaches to finding employment for jobseekers that are in a less favourable position in the labour market. However, the Government indicates that the Public Employment Services Act was amended in 2010 which allows private employment agencies to find job placements, or hire out to another employer, employees who are in a subsidised employment relationship. It further indicates that this amendment is expected to improve the employment opportunities of jobseekers when they are temporary agency workers. The Committee invites the Government to include in its next report information on the manner in which efficient cooperation between the public employment service and private employment agencies is promoted and reviewed periodically.