Government proposes to extend local government pilots on employment

The Government proposes to extend the validity of the Act on Municipal Experiments to Promote Employment until 31 December 2024. This will ensure a smooth transfer of TE services to municipalities during 2024.

The local government pilots on employment began on 1 March 2021 and, in accordance with the current Act, would end on 30 June 2023. Extending the Act would help avoid situations where customers of municipalities participating in the pilots would be transferred back to TE Offices before a permanent transfer of TE services to municipalities.

“The Government is currently preparing the TE services 2024 reform, which involves a permanent transfer of TE services to municipalities. At the same time, it is important to ensure a peaceful work environment for the local government pilots so that the transition to the permanent model happens as seamlessly as possible,” says Minister of Employment Tuula Haatainen.

The proposal also contains amendments required by the implementation of the Act on the Act on Public Business and Employment Service and the Unemployment Security Act. 

The amendments to the Act are scheduled to enter into force on 1 August 2022.

Government proposal on customer data processing and service platform of TE administration under Parliamentary consideration

The Government's proposal on extending the Act on Municipal Experiments to Promote Employment does not include any changes to the tasks of the pilots. However, Parliament is currently discussing a Government proposal on the reform of digital TE services (HE 225/2021 vp), which clarifies and updates the regulation on the processing of customer data in public employment and business services, including in the areas participating in the local government pilots.

As per the proposal, municipalities in the pilot regions would be data controllers for their own customers in the future. The proposed change concerning the controller is necessary in order to assign the responsibility and tasks related to the processing of personal data to the right parties. These legislative amendments are set to enter into force on 2 May 2022.

Inquiries:
Iiris Niinikoski, Special Adviser to the Minister of Employment, tel. +358 295 047 372
Lari Anttonen, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 088 
Juha Keski-Koukkari, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 206