As an employer, you are responsible for maintaining your employees’ work ability and finding solutions to possible problems related to their work ability.
Changes to the employment contract
Changes in an employment relationship may occur due to either the employer's or the employee's situation. On Job Market Finland, we provide information about measures you can use to support the continuation of an employment relationship in a situation where your employee's work ability affects work performance. In addition, we provide information on change negotiations, lay-offs, dismissals and their alternatives, as well as employee retirement.
When your employee’s reduced ability to work is affecting their job, you can look for solutions such as adapting work and services that support work ability. If you are a large employer, you should also familiarise yourself with the impact of the disability pension of a person with partial work ability on your earnings-related pension contribution.
When the financial situation of your company has deteriorated, dismissing employees from employment may be the first solution that comes to mind. However, you should check out all different options, especially when the difficult situation seems only temporary. Sometimes, for example, layoffs are a suitable option.
However, if you have to dismiss employees, you may need to arrange change negotiations. This depends on how many employees you employ and whether you are included in the scope of the Act on Co-operation within Undertakings. The change security services offered by the employment authority help dismissed employees and make the change situation easier for you as an employer.
Change negotiations must also be arranged in connection with other measures to reduce personnel, depending on how many employees you employ and whether you are included in the scope of the Act on Co-operation within Undertakings. Measures to reduce refer to dismissals, layoffs, part-time work or unilateral amendments to a material condition of the employment contract on financial or production-related grounds.
Your employment relationship with your employee will also end when your employee retires.
You can contact your local employment authority and get help with various employment-related matters through the Business E-services section of Job Market Finland.
You can find the employment authority's services for employers and entrepreneurs in the Business E-services.
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If your company’s financial situation has deteriorated, laying off employees or ending their employment may be the first solutions that come to mind. However, you should familiarise yourself with the different options, especially when a difficult situation only seems temporary.
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Change negotiations are joint activities between the employer and the personnel, the aim of which is to ensure the employees' possibilities of influencing their working conditions.
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If you need to dismiss employees for production-related and financial reasons, familiarise yourself with transition security. Transition security helps both the employer and the employee who is to be dismissed.
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If the organisation of your employees' working hours or additional training does not solve your company's difficult situation, you can avoid dismissals with lay-offs. In this case, the employee's work and payment of salary will end, but the employment relationship will continue.
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You can only dismiss your permanent employee for a justified reason. Dismissal of an employee in a fixed-term employment relationship is only possible if it has been agreed upon separately. If your employee has violated their obligations very seriously, you can terminate the employment relationship. After the dismissal, you also have obligations regarding the offer of work and the reinstatement of the employee.
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When your employee retires, your employment relationship ends. Read what you should remember as an employer before the retirement of an employee.
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