Finland’s Co-operation Act reform enters into force July 2025 – key changes for employers

The Finnish Co-operation Act Will Be Revised in July 2025 – What Employers Need to Know

The amendments to Finland’s Co-operation Act will enter into force on 1 July 2025. The reform raises the applicability threshold and streamlines negotiation procedures. The objective is to reduce the administrative burden especially for smaller companies and to allow employers to respond more quickly to changes in their operating environment.

Applicability threshold raised – impact on companies with fewer than 50 employees

Currently, the Co-operation Act applies to employers with at least 20 employees. After the reform, the applicability threshold will increase to 50 employees.

However, companies employing fewer than 50 people will still have certain simplified obligations:

• Ongoing dialogue remains, but its procedures will be significantly simplified.

• Co-operation negotiations are required only when the employer considers measures affecting at least 20 employees within a 90-day period.

• Negotiations are not required for temporary layoffs (maximum 90 days) due to a temporary reduction in work.

• Provisions on business transfers, mergers, and demergers remain unchanged.

Duration of co-operation negotiations will be shortened

The minimum duration of negotiations related to workforce reductions will be halved:

• Current 6 weeks → 3 weeks

• Current 14 days → 7 days

The duration depends on company size and matters under discussion.

New deadline for labor authority notifications

If the employer plans to terminate at least 10 employees for economic or production-related reasons, the employer must:

• Submit a negotiation proposal to the labor authorities.

• Ensure that dismissals cannot take effect until 30 days have passed after submitting the proposal.

Changes to employee representation under preparation

The government has decided to lower the threshold for employee representation from companies with at least 150 employees to those with at least 100 employees. Representation must be arranged either at board or management team level. A tripartite working group is preparing the changes as part of the second phase of the reform.

Stay up to date with changing employment legislation

If you want to ensure that your company’s processes, negotiations, and HR practices comply with the new law — our experts are ready to assist you.

👉 Contact your advisor.