If passed into law, the proposal would mean employers no longer need to provide a justification for offering a fixed-term contract instead of a permanent position.
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Finland’s Employment Minister Matias Marttinen (NCP). Image: Silja Viitala / Yle
Finland’s four government parties have reached an agreement on a legal reform that would make it easier for employers to give fixed-term contracts to workers.
Currently, a company must have a good reason to offer a fixed-term contract, of up to one year, to an employee — such as the covering of parental leave, for example, or a seasonal increase in workload.
However, under the government’s proposal, employers would no longer be obliged to give a reason why the contract is fixed-term, and not permanent.
The agreement between the government parties was first reported by Helsingin Sanomat.
Employment Minister Matias Marttinen (NCP) told HS that he believes the reform will encourage companies to offer more positions, especially to young people.
Finland’s unemployment rate is currently among the worst in Europe, and figures published during the summer revealed that more than a fifth of 15–24-year-olds in the labour force were out of work, a seven-percentage point increase from the same period last year.
Marttinen explained that the reform is aimed at lowering the threshold for companies to offer work, especially in the case of small and medium-sized enterprises.