Transition security for employers

For employment terminations, the objective of transition security is to speed up and facilitate the terminated employee's access to a new job.

The transition security operating model includes

  • more effective provision of information by the employer
  • an action plan that promotes employment made by the employer together with its employees
  • an employment plan for the terminated employee, which is drawn up at the TE Office
  • paid leave for terminated employees to look for a new job
  • training for terminated employees, either during the period of notice or in the early stages of unemployment, with the employer either organising the training of contributing towards the costs
  • occupational health services for terminated employees lasting for six months after the employee's work duties have come to an end.

Employer obligations

Notification to the TE Office of the start of cooperation negotiations

If you are an employer within the scope of the Act on Co-operation within Undertakings, you must notify your TE Office of your cooperation negotiations. This notification must be made no later than the beginning of the procedure. Notice must be given of the negotiations if they could lead to lay-offs or redundancies, regardless of the number of persons affected by the negotiations.

The notification is free-form, but it must be submitted in writing. You can submit the notification to the transition security expert for your area. The information can be found in the links on this page.

When the number of terminated employees is ten or more

An action plan to promote employment must be drawn up in cooperation with the personnel. This must be prepared when the cooperation procedure begins.

The action plan must include

  • the intended timetable for the cooperation negotiations
  • the procedures to be followed in the negotiations
  • the plans for principles to be observed during the period of notice in the use of TE Services
  • the principles to be applied in helping the affected personnel to find new employment or training

Notify the TE Office of any employment terminations if they apply to 10 or more employees. Provide the TE Office with details of the number of terminations due to occur, the profession or work duties of the employees, and the date of the terminations. Also inform the employees that they are entitled to an employment plan.

You can submit a notification using the form ‘Employer's notification to the TE Office’. Send the completed form to the TE Office by logging in with your Suomi.fi e-Identification to the Enterprise and Employer E-Services and selecting Contacts and Documents on the front page of the service.

When there are fewer than ten terminated employees

The cooperation procedure must include operating principles that support applying for other work, training, and TE services during the period of notice.

Coaching or training paid for by the employer

If you employ at least 30 people on a regular basis, any terminated employees who have been working for you for five years or more must be given the opportunity to participate in employment-promoting coaching or training which is paid for by the employer. This training must be made available either during the notice period or at the beginning of unemployment.  

  • You can also agree with the employee that you will pay for the training or coaching that they themselves acquire.  
  • The principles governing the organisation of training or coaching are recorded in the personnel training plan.
  • If you fail to comply with the obligation to provide training or training, you are required to pay the employee a lump sum equivalent to the value of the coaching or training.

Occupational health care provided by the employer

The employer has an obligation to arrange occupational health care for terminated employees that extends for six months after the employee's work duties have ended. For this period, the employer will receive a reimbursement under the Health Insurance Act.

This obligation applies to employers who regularly employ 30 or more employees. In addition, the employee's employment relationship must have lasted for at least five years.

Obligations related to the provision of employment after dismissal

Obligation to offer work and provide training

During the period of notice, the employer shall offer the dismissed a job in accordance with their employment contract or, if such is not available, shall offer other work corresponding to the dismissed education, professional skills or experience. The employee must be provided with the training required for the new duties, which should be reasonable and deemed feasible from both parties’ point of view. The employer must also find out whether the obligation to provide employment or training can be fulfilled by other corporate bodies/enterprises under their control. Regarding this obligation, the dismissed person is not required to be a jobseeker and their status should not be checked with the TE Office. Fulfillment of this obligation does not remove the subsequent re-employment obligation.

The employer must also remember that if they need more employees for tasks suitable for their part-time employees, the said work should first be offered to part-time workers.

Re-employment of an employee

If, within four months of the termination of the employment of persons made redundant for production-related or economic reasons, the employer hires new staff, they are first obliged to offer the work to workers made redundant in the same or similar positions. If the dismissed person's employment has lasted 12 years, the re-employment period is six months. In the case of municipal officials, the length of the re-employment obligation is nine months. The length of the re-employment obligation for civil servants is 12 months and for government employees nine months. Exceptionally, the re-employment period for those made redundant for production-related and financial reasons between 1.4.2020 and 31.12.2020 is nine months. It has also been possible to agree on longer re-employment periods in collective agreements and during the co-operation procedure. Those laid off are not subject to the re-employment obligation.

If the employer has a vacancy that is suitable for an employee subject to the re-employment obligation, they check by secure e-mail whether the employee identified by personal identity number is a jobseeker at the TE Office, unless otherwise agreed during the co-operation procedure. TE Office makes a note of the inquiry in its information system. If TE Office notifies the employer that the person is a jobseeker at the time of the check, the employer must offer the job in question to the said person. The employer is responsible for maintaining the employee's contact information, the actuality of the need for labor, and offering the job.

The obligations mentioned here also apply to employers who have made redundancies because of a reorganization procedure.

Occupational safety (tyosuojelu.fi)

Ask for advice from TE Services

We will provide help for employers and employees concerning transition security.

  • The telephone service for personal customers gives advice on matters related to transition security.
  • There are designated transition security experts at TE Offices who are responsible for TE Services in transition security situations.

The TE Office also offers employers transition security services in regions that are part of the municipal employment pilot. In addition, the TE Office is responsible for preparing an employment plan for jobseekers who are part of the municipal pilot when the jobseeker who is covered by the transition security has not yet transferred to the local government pilot on employment. 

Employer’s services during the local government pilot on employment