Co-operation procedure and other personnel representation systems

Co-operation within undertakings and groups of undertakings

The new Co-operation Act is entered into force on 1 January 2022.

The Act consist of three entities:

Continuous dialogue between employer and employees
Negotiations in changing circumstances (change negotiations)
Employee representative in company administration (administrative representative)

The Act would apply to companies and organisations employing at least 20 persons. The provisions on administrative representatives would apply to companies that employ at least 150 people in Finland. The Act would not apply to central or local government agencies or public bodies.

More information Cooperation Ombudsman
Co-operation Guide
Representation in administration

Co-operation within Finnish and Community-wide Groups of Undertakings

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 European Companies (SE) and European Cooperative Societies (SCE)

European Companies and European Cooperative Societies 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 and European Cooperative Societies 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.

Personnel funds

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.