Transition security for the employer

The objective of transition security is to help the dismissed employee and make the change situation easier for you as an employer.

The transition security operating model includes

• enhanced communication,
• preparation of an action plan to promote employment together with personnel,
• preparation of an employment plan in the employment services for a dismissed person,
• paid leave for dismissed employees to look for a new job,
• arranging training or participating in the costs of studies organised by other parties so that the dismissed person may acquire training during the period of notice or in the early stages of unemployment, and
• providing occupational health care to the dismissed person for six months from the end of the obligation to work.

The employment official offers you transition security services. There are designated transition security specialists in the employment services who are responsible for services in transition security situations. 

Transition security includes obligations that apply to you as an employer. The obligations depend on the number of your subordinates and the number of people you are about to dismiss.

Extended transition security for those aged 55 or over

Extended transition security is intended for you if you are 55 or older. The purpose of the service is to promote your quick employment and to improve your position in the labour market.

You are entitled to transition security for those aged 55 or over if

• you have turned 55 at the latest on the date of your dismissal,
• your employment contract has been terminated for financial or production‑related reasons on 1 January 2023 or later,
• you have worked for the dismissing employer for at least five years with interruptions of no more than 30 days,
• you have registered as a job seeker with the employment official within 60 days of the dismissal.

Transition security for those aged 55 or over includes

• transition security allowance,
• transition security training, and
• an employment leave of 5, 15 or 25 days.

The transition security allowance corresponds to your average monthly salary. Remember to apply for transition security allowance to your unemployment fund or Kela within three months of the end of your employment relationship.

Transition security training is a service intended for persons aged 55 or over who have been dismissed from their employment relationship. The employment official must arrange and grant it once information on the person’s dismissal has been gained from the employer.

Prepare an action plan to promote employment with the personnel

If you intend to dismiss at least ten employees, you must prepare an action plan to promote employment together with your personnel. This must be prepared when the cooperation procedure begins.

The action plan must include

• the planned timetable for change negotiations,
• procedures to be followed in the change negotiations,
• the plans for principles to be observed during the period of notice while using employment services, and
• the principles to be used in helping the affected employees find new employment or training.

Please notify the employment official of the termination of the employment relationship of the dismissed employees. Inform the employment official of the number of employees to be dismissed, their professions, work duties, and the dates of termination of their employment relationships. Inform the employees that they are entitled to an employment plan.

You can submit a notification using the form ‘Employer's notification’. Use Suomi.fi e-Identification to log in to the Enterprise and Employer E-service, select ‘Contacts and documents’ on the front page, and send the completed form.

If there are fewer than ten employees to be dismissed, you must explain in the change negotiations how your employees can apply for other jobs, training, or employment services during their period of notice.

Provide coaching or training for dismissed employees

If you regularly employ at least 30 employees, you must offer those dismissed the opportunity to participate in coaching or training that promotes employment. This applies to employees who have been employed by you continuously for at least five years. You can offer the possibility either during the period of notice or in the early stages of unemployment.

You must pay for the coaching or training you offer. You can also agree with the employee that you will pay for the training or coaching that they themselves acquire.

The principles governing the organisation of training or coaching are recorded in the work community development plan, which must be updated after the change negotiations.

If you fail to comply with the obligation to provide coaching or training, you must pay your employee a sum equivalent to the value of the coaching or training.

Arrange occupational health care for the dismissed employee

If you regularly employ at least 30 employees and the dismissed employee's employment has lasted for at least five years, as an employer, you are obliged to arrange occupational health care for six months as of the termination of the obligation to work. For this period, you will receive compensation under the Health Insurance Act.