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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Implementation of the Changes in the EU Directive Regarding Cross-border Conversions, Mergers, and Divisions

New Legislation Enacted

Authors: Noora Ollitervo, Associate, and Samuel Kääriäinen, Partner and Head of Employment – Dottir Attorneys Ltd.

The Finnish Parliament has approved new legislation to protect employees in cross-border conversions, mergers, and divisions. The new legislation became effective on January 31, 2023.

The changes in legislation are based on the amendment to EU Directive (EU) 2017/1132 by EU Directive (EU) 2019/2121, which safeguards the position of employees when an employer plans or carries out cross-border conversions, mergers and divisions. The provisions mainly aim to protect the continuation of the employment rights of the employees, the existing right of the employees to administrative representation, and the informing and consulting of the employees in the preparation of company restructuring by the employer.

Employer Has the Right to Choose Which of the Employees under the Same Threat of Dismissal They Will Dismiss

Precedential Decision by Judiciary or Regulatory Agency

Authors: Noora Ollitervo, Associate, and Samuel Kääriäinen, Partner and Head of Employment – Dottir Attorneys Ltd

On January 10, 2023, the Supreme Court examined a case where the employer had dismissed an employee on economic, production and reorganization grounds under the Employment Contracts Act. Shortly afterwards, the employer had invited another employee to take up a similar post in the same field of research for a three-year period.

In its ruling, the Supreme Court confirmed the principle that the employer can choose which of the employees under the same threat of dismissal they want to dismiss as long as the person to be dismissed is not selected on the basis of inappropriate or discriminatory grounds. In addition, the Supreme Court highlighted the fact that the employer cannot replace an employee with another employee who is not under the same threat of dismissal.