In a bid to raise Finnish businesses’ competitiveness, the government has launched three specific measures: lowering wage costs by 5% for the same level of production, lowering unemployment via pilot programs to encourage hiring and setting up businesses, and making employment contracts more flexible. A Ministerial working group has recently presented proposals concerning the measure over employment contracts.
The working group’s proposals. The main thrust of proposals put forward by the working group concerns changing the law over employment contracts so as to facilitate fixed term contracts.
Currently, the law permits recourse to fixed term contracts under a certain set of conditions and prohibits the successive use of these contracts when this is in response to a permanent demand for manpower. In practice, fixed term contracts are almost exclusively used to replace staff that is temporarily absent,
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