Changes at the turn of the year in the administrative branch of the Ministry of Economic Affairs and Employment
On this page, you will find information on the changes that will affect the administrative branch of the Ministry of Economic Affairs and Employment. For more information on all these topics, see the links for additional information in the press release.
Improved study opportunities for unemployed people
Unemployed jobseekers will be able to complete more studies without losing their unemployment benefit. Changes will also be made to the job search obligation and service process of jobseekers who are studying independently with the support of unemployment benefits. The changes aim to boost employment and public finances.
Lower distribution obligation for renewable transport fuels to continue in 2023
The distribution obligation for renewable transport fuels will continue to be reduced by 7.5 percentage points in 2023. This coming year, the obligation will be 13.5 per cent. The temporary reduction in the distribution obligation reduces the transport fuel prices at the pump in 2022 and 2023. The changes will curb fuel prices, which have risen due to Russia’s invasion of Ukraine, among other reasons.
Pay security reform improves the position of victims of serious work-based exploitation
The purpose of the pay security system is to ensure that employees receive their pay and other claims arising from an employment relationship in the event of the employer’s insolvency. From 2023, victims of serious work-based exploitation will have a longer period of time to apply for pay security. In addition, the reforms on pay security will streamline the pay security process and combat the shadow economy.
Changes to notification of business acquisitions
The new notification procedure for acquisitions will enter into force at the beginning of the year. The new procedure aims to reduce the administrative burden of companies in notifying transactions that are unlikely to cause problems to competition.
In addition, the notification threshold for acquisitions is scheduled to be lowered at the turn of the year. A lower notification threshold would prevent harmful market concentration, as more than one acquisition would need to be reported to the Finnish Competition and Consumer Authority.
Better transition security to facilitate re-employment
Transition security, which will enter into force at the beginning of 2023, aims to accelerate re-employment after lay-offs. In addition to the transition security currently provided under the Employment Contracts Act, a new scheme is proposed for all employees aged 55 years and over who have been made redundant after working for the same employer for at least five years.
The new transition security will comprise an allowance and training. The Ministry of Economic Affairs and Employment will provide the transition security training, which aims to improve employees’ professional skills or ability to set up a business, and to promote their rapid re-employment after dismissal. Dismissed employees can register as jobseekers, map their skills and working capacity and draw up an employment plan during the period of notice.
Legislative amendments to increase the employment rate of people aged 55 or over.
Regional transport subsidy to continue in 2023‒2025 and to cover new municipalities in eastern Finland
On 8 December 2022, the Government issued a decree under which regional transport subsidies will continue in 2023‒2025. The subsidy will remain largely the same as before. Regional transport subsidy will reduce the freight costs caused by long transport distances of products manufactured by SMEs operating in sparsely populated areas. This will improve the competitiveness of companies and support their business activities.
The decree will come into force on 1 January 2023.
Press release 8 December 2022: Regional transport subsidy to continue in 2023‒2025 and to cover new municipalities in eastern Finland
Acts promoting employment and integration change when the wellbeing services counties begin operations
When wellbeing services counties take over the responsibility for organising health and social services from municipalities at the beginning of January, the following Acts will change: the Act on Multisectoral Joint Services Promoting Employment (TYP Act), the Act on Municipal Experiments to Promote Employment (Municipal Experiments Act) and the Act on the Promotion of Immigrant Integration (Integration Act).
At the turn of the year, the TYP Act will be amended so that wellbeing services counties become the authority responsible for health and social services in the joint services model. In the model, health and social services were previously the responsibility of municipalities. The Municipal Experiments Act will have a technical amendment concerning the processing of client data, as the municipalities participating in local government trials, instead of the Employment and Economic Development Office, will continue to perform certain tasks referred to in the TYP Act.
Under the Integration Act, the State will compensate municipalities for the costs incurred in promoting integration. The Integration Acy will be amended in order to allow wellbeing services counties to apply for compensation from the State for the costs incurred in, for example, healthcare and social welfare provision for refugees. Depending on the immigrant’s service needs, the wellbeing services county may also participate in drawing up an initial assessment and an integration plan with the Employment and Economic Development Office or the municipality. Wellbeing services counties will take over responsibility from municipalities for supporting unaccompanied minors and arranging accommodation for them, for example in family group homes.
The legislative amendments will enter into force on 1 January 2023.
Press release 25 May 2022: Government proposes to change legislation promoting employment and integration
Parliamentary reply Link to an external site Government proposal for acts amending the Act on Multisectoral Joint Services Promoting Employment, the Act on the Promotion of Immigrant Integration and the Act on Municipal Experiments to Promote Employment (HE 84/2022 vp; EV 129/2022 vp) Link to an external site
What will change in the promotion of integration and in central government compensation in 2023? | Integration Link to an external site