The TE Services 2024 reform brings services closer to personal and corporate customers

Well-functioning employment and economic development services play a crucial role in helping people find employment as quickly and smoothly as possible. A major legislative reform for transferring TE Services to municipalities and employment regions by 1 January 2025 is currently underway.

What is the reason for such a massive undertaking? The reform represents a key part of the Government’s employment measures as a whole. Its objective is to organise employment services in ways that efficiently support the vitality and competitiveness of municipalities and regions by utilising the many employment-increasing opportunities offered by the municipal ecosystem. This will help boost the efficiency of the employment process, as employment services, municipal educational services and business services can be arranged by the same organiser.

The transfer of TE Services to municipalities will help bridge the gap between services and customers – and between jobseekers and employers. Municipalities and regions are well-equipped to offer their customers targeted services that have been tailored to the needs of the local labour market, providing an increasingly local perspective into unemployment and labour shortage issues.

The Government's legislative proposal was adopted by the Parliament on 1 March 23. The transfer of TE services to the municipalities will take place on 1 January 2025.

The comprehensive reform of the Integration Act (KOTO24) strengthens the employment of immigrants and clarifies responsibilities

The aim of the Act on the Promotion of Immigrant Integration is to strengthen the employment, job market capabilities and language skills of immigrants as well as their inclusion in society. The Act also aims to promote equality, non-discrimination, and positive interaction between different population groups.

The Act on the Promotion of Immigrant Integration will be reformed to meet the Parliament’s requirements for integration (report of the Parliamentary Audit Committee). In addition, several other major reforms are being prepared, such as the launch of wellbeing services counties and the reform of health and social services and TE Services. These reforms will also have an impact on the authorities’ responsibilities to promote integration.

The overall reform of the Integration Act is linked to the reform of TE Services. In connection with the reform of the TE Services, the responsibility for promoting the integration of TE Services’ integration clients will be transferred to the municipalities. Based on The aim of the Act on the Promotion of Immigrant Integration municipalities must offer integration-oriented employment services to clients who are not able to work at the moment. These plans are made into client system which is made for this purpose (Koto-digi- project).The responsibility for organising integration-oriented employment services, such as integration training, will also be transferred to the municipalities. 

The comprehensive reform of the Act on the Promotion of Immigrant Integration can be monitored through the communication channels of the Ministry of Economic Affairs and Employment and the Centre of Expertise in Immigrant Integration, as well as through the Integration.fi online service and Partnership Platform for professionals involved in the field. The Partnership Platform requires registration.

The implementation of the reforms is being prepared in extensive stakeholder cooperation

The preparation for the implementation of the reforms has progressed steadily in conjunction with their parliamentary review. Currently, efforts are being concentrated on the preparation of a joint implementation programme for the TE24 and KOTO24 reforms. The programme is being prepared by an extensive network consisting of the key actors and stakeholders involved in the reform, as well as personnel representatives. The programme is expected to be completed by April 2023, after which it will be introduced and put into action.

The implementation programme determines e.g. how state-level steering and support will be organised and how national preparation will be coordinated by theme. The programme also describes specific implementation procedures, such as business transfers, change preparation schemes for central and local government personnel, regional preparation (led by the municipalities) and key interfaces, such as wellbeing services county interfaces, as well as their implementation schedules. The programme aims to utilise the best practices and lessons learned from local government pilots on employment and the work ability programme.

The objective guiding the preparation process is that of a controlled transition, i.e. ensuring that all key employment authority functions and services are ready and operational when the responsibility for organising the services is transferred to the municipalities and employment regions on 1 January 2025.

The KEHA Centre will be renewed to support future employment and integration authorities in the provision of services

The KEHA Centre was launched in 2015 to serve as the joint development and administration centre for ELY Centres and TE Offices. After the implementation of the TE24 and KOTO24 reforms, the KEHA Centre will assume an increasingly extensive set of important responsibilities. For example, the Centre will be responsible for the provision of national information system and advisory services for labour and integration tasks, information management support services, tasks related to unemployment and pay security, and the production of Work in Finland services together with Business Finland. The reform of the KEHA Centre will also aim to ensure the future quality and efficiency of all current KEHA Centre services.

The KEHA Centre will be reformed simultaneously and in close cooperation with the TE24 and KOTO24 reforms.