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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Posted Employees: Implementing the Amended Posted Workers Directive (EU) 2018/957

New Legislation Enacted

Authors: Emma Mäkeläinen, Associate and Samuel Kääriäinen, Partner – Dottir Attorneys Ltd.

Finland has adopted the amended Posted Workers Directive (EU) 2018/957. The purpose of the amendments is to promote equal treatment of posted employees and competition between companies. First, the long-term posting requires equal treatment with national employees as regards terms of employment. Second, the employer must reimburse the travel, accommodation and meal costs to the posted employee in the country of employment. Third, the term “minimum salary” is changed to “salary”, but this does not affect how the amount of the salary is determined. Last, the companies posting the employees to Finland must inform the Finnish industrial safety authority regardless of the duration of the posting.

Supreme Court Ruling on Compensation for Discrimination at Work

Precedential Decision by Judiciary or Regulatory Agency

Authors: Emma Mäkeläinen, Associate and Samuel Kääriäinen, Partner – Dottir Attorneys Ltd.

On December 17, 2020, the Supreme Court of Finland ruled on a case relating to employee’s right to compensation for suffering when the employer was also ordered to pay compensation for unjustified termination of employment, as well as remuneration for the prohibited discrimination. The employer was deemed to have terminated the employment due to the employee’s illness during the probation period.

The compensation for unjustified termination includes compensation for both material and nonmaterial damage. The Supreme Court ruled that the total compensation for unjustified termination of employment and the amount of the nonmaterial part of the compensation, as well as the remuneration shall be considered when assessing employee’s right to compensation for suffering. The Supreme Court rejected the claim for separate compensation for suffering as it ruled that the insult against the employee had been fully compensated by the nonmaterial compensation and remuneration for discrimination.

Post-termination Noncompetition Agreements: Obligation to Pay Compensation

Proposed Bill or Initiative

Authors: Emma Mäkeläinen, Associate and Samuel Kääriäinen, Partner – Dottir Attorneys Ltd.

The Finnish government has introduced a bill to amend the Employment Contracts Act (55/2001, as amended) relating to post-termination noncompetition agreements. The obligation to pay compensation would be extended to all post-termination noncompetition agreements and the compensation would be 40 – 60 % of employee’s regular salary throughout the noncompetition period, depending on the duration of the noncompete period. The employer would also have a unilateral right to terminate the noncompetition agreement, but not after the notice of termination has been given. The amendments are planned to be effective as of January 1, 2022.

Self-employed Couriers Are Considered Employees

Important Action by Regulatory Agency

Authors: Emma Mäkeläinen, Associate and Samuel Kääriäinen, Partner – Dottir Attorneys Ltd.

On October 5, 2020, the Finnish Labour Council issued two statements, declaring that the self-employed couriers of two major courier service platform companies are in fact employed by the companies and covered under the mandatory provisions of the Employments Contracts Act. The Labour Council stated that the characteristics of an employment relationship were met, such that the Working Hours Act should be applied to their work.

The statement included rather surprising conclusions, considering that the couriers are in a highly independent position and are, for example, entitled to decide when, where and how much they work and are also entitled to decline any work offers as they please and even work for companies competing with each other. Although, the statements are not legally binding, they are typically considered by courts.

COVID-19: Expiration of Temporary Amendments

Trend

Authors: Emma Mäkeläinen, Associate and Samuel Kääriäinen, Partner – Dottir Attorneys Ltd.

All temporary amendments made to the employment legislation – such as shortening the cooperation consultations period from 14 to five days – that were implemented on April 1, 2020, expired on December 31, 2020. The amendments aimed to help businesses to adjust to changes in demand for labor, caused by the COVID-19 pandemic.