Change negotiations and cooperation

The Act on Co-operation within Undertakings, which obliges you to have co-operation negotiations, is applied to companies that have at least 20 employees on a regular basis, with certain exceptions. The number of employees includes both part-time and fixed-term employees. The number of employees does not, however, include employees who work temporarily or for a shorter period of time or season. Neither are temporary agency workers and employees under a subcontractor taken into account in the calculation of the number of employees of the subscriber company.

The Act on Co-operation within Undertakings obliges you to negotiate in situations concerning particularly the dismissal, layoff or partial layoff of employees, business transfer or the impact on personnel or organisation of work due to changes in business operations. On the initiative of the employer or the employees’ representative, negotiations can also concern other matters relating to work, such as changes in rules of work or the design of social facilities at the workplace.

Negotiations on dismissals, layoffs or partial layoffs are normally between the employer and the employees’ representatives. If the dismissals, layoffs or partial layoffs concern only an individual employee or individual employees in different personnel groups, the matter can be discussed between the employee and the employer. However, the employee has the right to demand that the matter concerning them is also discussed between the shop steward and the employer.

If the change negotiations concern workforce reductions or the unilateral amendment of an essential term of the employment contract on financial or production-related grounds, they must comply with the minimum negotiation periods defined by law. Collective agreements may provide otherwise regarding the layoff notice period and the duration of negotiations. Please check the applicable collective agreement in your sector.

Do change negotiations apply to companies with at least 50 employees?
Yes. The Act on Co-operation within Undertakings applies to all companies and organisations that regularly employ at least 50 employees.

Negotiations last three weeks if they concern the part-time arrangements, layoffs, or dismissals of at least 10 employees, or the unilateral amendment of an essential term of the employment contract, or the layoff of at least 10 employees for more than 90 days.

Negotiations last 7 days if they concern the dismissal, layoff, or part-time arrangements of fewer than 10 employees, or the amendment of an essential term of the employment contract. The negotiation period is also 7 days if the negotiations concern layoffs of up to 90 days (even if the 10-employee threshold is met).

Do change negotiations apply to companies with 20–49 employees?
The obligation to conduct change negotiations also applies, under certain conditions, to companies employing 20–49 employees.

The negotiation obligation is 7 days if the employer regularly has fewer than 50 employees.
Negotiations last 7 days if at least 20 employees are affected by workforce reductions during a 90-day period.

However, there is no negotiation obligation if the layoffs last no longer than 90 days and are based on a temporary reduction in work.

The 7-day negotiation obligation may also apply if the employer conducts several change negotiations within a 90-day period and the total number of employees affected by workforce reductions reaches the threshold of 20.

The employer may conclude the change negotiations once the minimum negotiation period has passed and the negotiations have addressed the grounds for the planned measure, its effects, and the alternatives presented by the shop steward.

If you have any questions about change negotiations, please contact us.

More information

Nearly everyone considers co-operation negotiations and the possible termination of employment distressing. Your shop steward will keep you informed of the progress of the co-operation negotiations and also answer your questions regarding the negotiations.

Our career service provides our members with advice on job seeking, career planning and improving in their work. You can find up-to-date information on unemployment security on the unemployment fund Pro’s website.

Continuous dialogue improves communication

Continuous dialogue is a regular conversation between the employer and staff, conducted to develop both the employer’s operations and the work community.

Dialogue promotes timely and sufficient information flow between the employer and employees, as well as employees’ opportunities to influence matters that affect their work, working conditions, or position.

Dialogue covers many topics

Examples of matters discussed in dialogue include:

• The employer’s development prospects and financial situation
• Workplace rules and policies
• Workforce utilization and staff structure
• Employee skill needs and professional development
• Maintaining and promoting workplace well-being

An important part of the dialogue is also the workplace development plan drawn up in connection with it.

Dialogue is conducted regularly

As a general rule, dialogue should take place at least quarterly. For companies with fewer than 30 employees, twice a year is sufficient. If employees have not elected representatives, the dialogue requirement can be met by organizing one joint meeting for all employees per year.

The organization and method of dialogue can be tailored to suit each company’s circumstances. However, it is not permissible to agree to hold no dialogue at all.