Labour Law
Labour law professionals with decades of experience
Special expertise in labour law issues
Labour law matters are our area of expertise, and we handle employment disputes with decades of experience. As experts who have resolved hundreds of labour law disputes, you can be sure that you have a skilled and experienced labour law expert at your disposal.
Airakorpi Law Ltd assists both employers and employees in all matters related to employment relationships.
Employers
We assist companies of all sizes in labour law matters with extensive experience
Professionally and efficiently handled labour law disputes save time, costs, and resources. We handle labour law matters throughout Finland.
We assist employers in employment disputes and related negotiations during the employment relationship, in matters related to the termination of employment, and in disputes and negotiations following the termination of employment. Disputes related to labour law are generally most advantageous for both parties to settle without litigation, and with the assistance of an experienced labour lawyer, the chances of disputes being taken to court can be minimized. Reaching an agreement at an early stage also saves time and resources.
We represent employers in general courts, labour court, criminal proceedings related to labour law, and arbitration proceedings.
The labour lawyers at Airakorpi Law Ltd have a long and extensive experience in labour law disputes brought before the courts. We assist employers in employment disputes litigated in general courts and in disputes concerning collective agreements litigated in labour court, as well as in criminal proceedings related to labour law and occupational safety. We also assist in arbitration proceedings.
In addition, we assist employers in drafting various agreements, such as employment termination agreements, employment and management contracts, and non-competition agreements.
You can contact us with any questions you may have regarding labour law issues in your company
Termination of an employee
An employer may terminate a permanent employment contract either for grounds related to the employee’s person or for financial or production-related grounds.
A fixed-term employment contract ends without notice when the term expires or when the work agreed upon is completed. However, a fixed-term employment contract may be cancelled if certain conditions are met.
Termination grounds related to the employee's person
Prior to 2026, the Employment Contracts Act stipulated that, as a proper and weighty reason for termination arising from the employee or related to the employee’s person may be a serious breach or neglect of obligations arising from the employment contract or law that have a significant impact on the employment relationship. A change in the conditions related to the employee’s person that have a significant impact on the employment relationship and that prevent the employee from performing their duties can also constitute a proper and weighty reason.
This was an overall assessment. However, an employee who has neglected or violated their obligations arising from the employment relationship may usually not be dismissed before they have been given a warning.
These provisions apply to events that occurred before 2026.
From the beginning of 2026, the Employment Contracts Act stipulates that an employer may terminate a permanent employment contract for a proper reason related to the employee’s person. The termination must not be influenced by discriminatory reasons. After the change in the law, the following, at least, may be considered proper reasons:
Breach or neglect of obligations arising from the employee’s employment contract or the law that affect the employment relationship, such as failure to comply with instructions given by the employer within the limits of its right to supervise work, neglect of work, unjustified absence, inappropriate behaviour, and negligence at work;
a significant change in the employee’s personal circumstances that prevents him or her from continuing to perform ones duties.
The presence of grounds for termination is still assessed on a case-by-case basis, taking the seriousness of the employee’s conduct or change in working conditions under consideration, as well as other relevant factors.
Termination of employment on grounds related to the employee’s person often leads to negotiations with the employee’s trade union. We have decades of experience in handling disputes related to terminations on personal grounds. We will assist your company in all aspects of the termination process, from the implementation of the termination to post-termination negotiations and court proceedings, if necessary.
Financial and production-related grounds for termination
The employer may terminate the employment contract if the work to be offered has diminished substantially and permanently for financial or production-related reasons or for reasons arising from reorganisation of the employer’s operations. The employment contract shall not be terminated, however, if the employee can be placed in or trained for other duties.
The employer’s training obligation is limited. The employer has a training obligation when training can be considered appropriate and reasonable for both the employer and the employee.
Before terminating an employee’s employment contract, the employer should consider whether it has an obligation to offer work and an obligation to provide training. If there is no work available, the employer has no obligation to provide training. If there is work available that requires training for the employee, it must be assessed whether the training is appropriate and reasonable.
Cancellation of a fixed-term employment contract
A fixed-term employment contract may be cancelled either for a very weighty reason or as a probationary termination.
An employer may cancel a fixed-term employment contract for a extremely weighty reason. Such grounds may include a serious breach or neglect of obligations arising from the employee’s employment contract or the law that have a material impact on the employment relationship, to the extent that the employer cannot reasonably be expected to continue the contractual relationship. Cancellation of a fixed-term employment relationship is only permitted for reasons related to the employee.
If a probationary period applies to a fixed-term employment contract, the employment relationship may be cancelled during the probationary period. Cancellation during the probationary period must be carried out during the probationary period. Cancellation during the probationary period does not require a specific reason. However, even during the probationary period, the employment relationship may not be cancelled on discriminatory grounds or on grounds that are otherwise inappropriate for the purpose of the probationary period. Before cancelling the employment relationship, the employer must arrange a hearing, i.e., the employee must be given the opportunity to be heard. The employer does not need to give a specific reason for the cancellation unless the employee requests it.
If the employee disputes the cancellation of the employment contract, the employer must demonstrate that the cancellation is based on proper grounds.
We are specialists in situations relating to the termination of employment
CEO agreement and executive employment contract
A CEO agreement basically means an employment contract that is made with a CEO or someone in a similar position who’s not covered by the Employment Contracts Act. These agreements are not subject to the provisions of the Employment Contracts Act, nor are they subject to the Working Time Act or the Annual Holidays Act.
A CEO agreement differs from a normal executive agreement in that, whereas an executive is in an employment relationship and is subject to the Employment Contracts Act, a CEO is an executive body of the company and is not subject to the Employment Contracts Act. A CEO agreement must comply with the Limited Liability Companies Act. The general provisions and principles governing agreements apply to CEO agreements. The content of such agreements can be agreed almost entirely freely, and it is common practice to agree, for example, on compensation payable in connection with the termination of the contractual relationship.
Airakorpi Law Ltd assists in the drafting of executive employment contracts, in negotiations concerning them, and in disputes arising from them.
We assist companies in all legal matters related to employment relationships with decades of experience
Contact us, and we will assess your company's situation together
Employee
Our lawyers specializing in labour law will assist you in disputes and negotiations related to the termination of employment and in disputes arising after the termination of employment. In most cases, it is in the best interests of both parties to settle labour disputes related to labour law without costly legal proceedings, and this is our primary goal. However, in some situations, reaching an agreement is not reasonable or possible, in which case the matter is often referred to a court for resolution.
Unlawful termination
The termination of an employment contract must take place under the terms specified by law, otherwise it is considered unlawful termination. Termination of an employment contract is only possible in the case of employment relationships that are valid until further notice.
An employee may terminate a permanent employment contract by notifying the employer of the resignation either in writing or verbally. This marks the start of the notice period, at the end of which the employment relationship will terminate, unless otherwise agreed. As one of the purposes of labour legislation is to protect employees, the employer’s right to terminate an employment contract is limited. The employer may terminate the employment contract only for a proper and weighty reason (events before 2026) or for a proper reason related to the person (events on or after January 1, 2026). The employer must also generally give the employee an opportunity to correct their behaviour if the grounds for termination related to the employee have become apparent. The employer usually reserves this opportunity by issuing a warning to the employee.
Compensation for unlawful dismissal
The employer must pay the employee compensation for unjustified termination of employment if the employment relationship has been terminated unlawfully. As a rule, the amount of compensation is at least three and at most 24 months’ salary.
Cancellation of employment
The employer and employee have the right to cancel the employment contract only for extremely weighty reasons. In such cases, the notice period does not apply, and the employment relationship ends immediately. Payment of wages and the obligation to work shall cease immediately upon the other party becoming aware of the cancellation. Cancellation of employment may be considered in both permanent and fixed-term employment relationships. The grounds for cancellation must be invoked within 14 days of becoming aware of them.
Employment discrimination
According to the Employment Contracts Act, employers must treat employees equally. Employment discrimination can occur even at the recruitment stage. If an employer or its representative discriminates against a job applicant or employee, they may be guilty of a criminal offense. Employment discrimination may result in a fine or imprisonment.
A victim of discrimination has the right to compensation from the employer. The compensation must be fair and proportionate to the seriousness of the offense. There is no lower or upper limit for compensation; the seriousness of the offense is assessed by taking into account the nature, extent, and duration of the violation.