Petteri Orpo's (NCP) government has submitted a parliamentary proposal to make it easier for employers to dismiss staff.
Under the government's proposal, a "proper reason" would suffice for terminating an employment contract, compared with the current law, which requires the reason to be both proper and weighty.
Not every instance of reproachable behaviour or inadequate performance would constitute sufficient grounds for dismissal, the government said in a statement.
Taking parental leave would not, for example, constitute grounds for dismissal.
Employment Minister Matias Marttinen (NCP) said the bill aims to remove barriers to employment and encourage companies to hire. He noted that the change is particularly important for small businesses, which often view the legal risks associated with dismissals as a significant obstacle to recruitment.
"Finland will not become a 'wild west' as a result of this legislative change," Marttinen said at a press conference. "Employees' legal protections will remain strong. Dismissals cannot be carried out arbitrarily or for discriminatory reasons — there must always be a lawful, justified reason under the law," he said.
The employee side opposes easing dismissal rules. The Central Organisation of Finnish Trade Unions (SAK) said the proposal represents a significant weakening of job security.
The proposal also loosens employers' reassignment obligation for dismissed workers. Under current law, employers must always explore whether a dismissed employee can be reassigned to another position. The legislative plan would relax this requirement.
Last year, the Ministry of Economic Affairs and Employment established a tripartite working group to prepare the proposed changes. The group, however, did not reach a unanimous agreement.
The government proposes that the legislative changes take effect at the start of next year.
