Changes to the employment contract

The termination of employment may be initiated either by the employer or employee. You will find information on employee cooperation negotiations, dismissals, layoffs, and alternatives to them at Job Market Finland.

  • If your company’s financial situation has deteriorated, laying off employees or ending their employment may be the first solutions that come to mind. However, you should familiarise yourself with the different options, especially when a difficult situation only seems temporary.

  • Change negotiations are joint activities between the employer and the personnel, the aim of which is to ensure the employees' possibilities of influencing their working conditions.

  • If you need to dismiss employees for production-related and financial reasons, familiarise yourself with change security. Change security helps both the employer and the employee who is to be dismissed.

  • If the organisation of your employees' working hours or additional training does not solve your company's difficult situation, you can avoid dismissals with lay-offs. In this case, the employee's work and payment of salary will end, but the employment relationship will continue.

  • You can only dismiss your permanent employee for a justified reason. Dismissal of an employee in a fixed-term employment relationship is only possible if it has been agreed upon separately. If your employee has violated their obligations very seriously, you can terminate the employment relationship. After the dismissal, you also have obligations regarding the offer of work and the reinstatement of the employee.

  • When your employee retires, your employment relationship ends. Read what you should remember as an employer before the retirement of an employee.

When the financial situation of your company has deteriorated, dismissing employees from employment may be the first solution that comes to mind. However, you should check out all different options, especially when the difficult situation seems only temporary. Sometimes, for example, layoffs are a suitable option.

If you must dismiss your staff, you will need to arrange change negotiations. The transition security services provided by the TE Office help dismissed employees and make the transition easier for you as an employer.

Your employment relationship with your employee will also end when your employee retires.