Co-operation procedure and other personnel representation systems
Co-operation within undertakings and groups of undertakings
The objective of the co-operation is to develop the operations and working conditions of an undertaking. Co-operation procedures include consulting and informing employees.
Before an employer makes a decision on matters affecting the status of personnel, it must negotiate with personnel representatives or the employees. The objective of these negotiations is to enhance the employees’ opportunities to influence the issue in question. Co-operation within undertakings is regulated by the Act on Co-operation within Undertakings (Co-operation Act). See also financially-supported development of employee's professional skills.
The Act on Co-operation within Finnish and Community-wide Groups of Undertakings (Group Co-operation Act) lays down provisions on co-operation within a Finnish group of undertakings, which has a total minimum of 500 employees, and a group of undertakings engaged in economic activity, which has a total minimum of 1,000 employees within the European Economic Area (hereinafter the EEA), where a community-wide undertaking has in each of at least two EEA member states a minimum of 150 employees.
Personnel representation in company administration
The Act on Personnel Representation in the Administration of Undertakings gives personnel the right to participate in decision-making on executive, supervisory or advisory bodies of undertakings, when such bodies are handling matters that involve the company’s business operations or the position of personnel. When organised correctly, personnel representation promotes the passing of information between personnel, the company’s management and company owners.
The personnel’s expertise can thus be effectively applied to decision-making concerning the company. Another purpose of personnel representation is to secure the company’s competitiveness.
Personnel representation in European Companies (SE) and European Cooperative Societies (SCE)
European Companies (SE) and European Cooperative Societies (SCE) are forms of company through which it is possible to engage in business over the entire European Union in the name of a single company. In Finland, the Act on Employee Involvement in European Companies (SE) and European Cooperative Societies (SCE) imposes the European Union Directive on complementing regulations, on European Companies with personnel representation. Personnel representation refers to a system through which employee representatives can influence decision-making within a company.
A personnel fund means a fund owned and controlled by the personnel of a company, agency or municipality, with the purpose of managing the performance bonus or profit bonus items (personnel fund contribution and its supplement) and other assets referred to in the Act on Personnel Funds and paid into the fund by the company, agency or municipality. A personnel fund covers all persons working for the company. The Act on Personnel Funds lays down provisions on the operation of personnel funds.
Review of the Act on Co-operation within Undertakings and its effectiveness, 2018 (description)
Functionality and amendment requirements with regard to the Act on Co-operation within Undertakings from the perspective of a statement by the Labour Council and proposal by the Co-operation Ombudsman, 2014 (abstract)
Supervision: cooperation ombudsman
Law-drafting: Nico Steiner, nico.steiner(at)tem.fi; Elli Nieminen, elli.nieminen(at)tem.fi