News and events

New Supreme Court and Labour Court Rulings on Employer’s Right to Choose Employees for Financial and Production-Related Dismissal

07.04.2016

The question of how to choose employees for dismissal on financial and production-related grounds has been reiterated by the Supreme Court (case KKO 2016:15) and the Labour Court (case TT 2016:17).

As a main rule, the employer may freely select the employees to be dismissed if the dismissal is based on financial and production-related grounds. However, the employer may not select employees on discriminatory or inappropriate grounds. Doing so will lead to the dismissal being considered groundless, as was the case in the Supreme Court Ruling.

A failure to follow a Collective Agreement’s regulation regarding the order in which employees should be dismissed, does not on the other hand alone mean that a dismissal is groundless. It may, however, result in compensatory fines to the employer, like in the Labour Court case mentioned above.

For more information on the cases, please contact the undersigned. A more detailed summary is also available in Finnish.

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07.04.2016

Amendments to Annual Holidays Act on 1 April 2016

The amendments to Annual Holidays Act entering into force in the beginning of April limit the accumulation of annual holidays during parental leaves and restrict employees’ right to postpone their holiday due to illness or incapacity to work.

07.04.2016

Planning Restructuring of Company’s Operations – Have Employment Law Aspects Been Taken into Account?

When a company is planning to restructure its operations, attention should also be paid to Finnish employment law aspects. Arrangements like restructuring, sale or purchase of a business or a part thereof, closing an office or moving operations to retail dealers or subcontractors, may have personnel effects that must be considered from an employment law perspective.

08.03.2016

EU-U.S. Privacy Shield taking form

On 29 February 2016, the European Commission issued the legal texts that will put in place the so called EU-U.S. Privacy Shield replacing the previously repealed Safe Harbor framework and enabling transatlantic data flows.

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