Amendments to the Act on Co-operation within Undertakings

The Government aims to reform working life legislation to remove barriers to employment and, in particular, to strengthen the operating conditions of small and medium-sized companies. The amendments to the Co-operation Act are among the Government’s labour market reforms. The aim is to reduce the administrative burden caused by legislation, especially in companies with fewer than 50 employees.

The first phase of the legislative project would implement the Government Programme’s entries on raising the threshold for applying the Co-operation Act and reducing the minimum duration of change negotiations by half. It will be evaluated in the second phase of the project whether the board representation of employees should be amended.

The timeline describes the preparatory phases: Working group’s first term 11 December 2023–20 June 2024. Consultation round 28 June–23 August 2024. Report on the need to amend board representation autumn 2024. Government proposal November 2024. Working group’s second term 1 January–31 March 2025. Government’s mid-term policy review session spring 2025. Entry into force of the first-phase amendments to the Act 1 July 2025.

Elli Nieminen, Chief Specialist, Ministry of Economic Affairs and Employment, [email protected]