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New rules for change negotiations – what has changed?

Kaksi henkilöä suunnittelee muistiinpanolappujen äärellä, toinen pitelee kuppia.
Kaksi henkilöä suunnittelee muistiinpanolappujen äärellä, toinen pitelee kuppia.
Change negotiations, formerly known as cooperation negotiations, often give rise to uncertainty and questions. The updated ‘Sacked huh’ guide answers the most common questions regarding change negotiations in accordance with the current Act on Co-operation within Undertakings.

What are change negotiations?

Change negotiations are discussions between the employer and staff that take place when the employer is considering measures that may have significant implications for staff. These include, for example, redundancies, layoffs, reductions in working hours, or changes to the essential terms of an employment contract, job contract.

When must change negotiations take place?

Change negotiations must be held if the measures being considered by the employer may affect the number of employees, their duties or essential terms and conditions of employment. This obligation is based on the Act on Co-operation within Undertakings and applies to potential changes planned on economic and production-related grounds.

How many employees must a company have for Change negotiations to take place?

From 1 July 2025, the obligation to negotiate and engage in dialogue under the Act on Co-operation within Undertakings will, as a general rule, apply to companies that regularly employ at least 50 employees.

In companies with 20–49 employees, Change negotiations must only be held in certain situations, such as when the dismissal, layoff or reduction to part-time work of at least 20 employees is being considered within a 90-day period, or when a unilateral change to a material term of an employment contract, job contract is being considered on a collective basis.

Are change negotiations the same as the previous cooperation negotiations?

Yes. Cooperation negotiations is the former name for change negotiations. The term changed when the new Act on Co-operation within Undertakings came into force at the start of 2022, but in practice we are talking about the same type of negotiation process. Cooperation negotiations are still held in the public sector.

How long do change negotiations last?

The minimum duration of change negotiations has been shortened following legislative changes that came into force on 1 July 2025. The duration of the negotiations – three weeks or seven days – depends, among other things, on the size of the company and the scope of the planned measures.

What is covered in the change negotiations?

The topics covered in change negotiations include:

  • the grounds for the planned measures
  • the estimated impact on staff
  • options for implementing the changes
  • ways of reducing the number of redundancies or furloughs

The aim is to negotiate in a genuine spirit of cooperation and to reach a consensus before decisions are made.

Can the employer decide on matters before the negotiations?

No. The employer may not make final decisions until the change negotiations have been conducted in the manner required by law. Making decisions before the negotiations have concluded may breach the Act on Co-operation within Undertakings.

Who represents the employees in change negotiations?

The employees are primarily represented by a shop steward.

What happens if the change negotiations are not conducted properly?

If the employer fails to fulfil the obligation to hold change negotiations as stipulated in Section 44 of the Act on Co-operation within Undertakings, this may result in compensation for the employees. Furthermore, such a failure undermines trust, increases uncertainty in the workplace and may damage the employer’s reputation.

Where can I find more information on change negotiations?

You can find up-to-date and practical information on change negotiations in the change negotiation guide, from your shop steward or from your union.