Collective agreements and mediation in labour disputes
Collective agreements
A collective agreement is an agreement made by one or more employers or an employers’ association with one or more employees’ unions concerning conditions which must be complied with in contracts of employment or employment relationships. Collective agreements serve two important purposes:
- They lay down the minimum terms of employment and
- they oblige the parties to observe industrial peace.
If an employment contract is in any respects in contradiction of the collective agreement for the relevant sector of industry the contract is null and void for the sections concerned and the equivalent provisions in the collective agreement must be observed instead.
The general applicability of a national collective agreement is determined by the committee confirming the general applicability of collective agreements, which operates under the auspices of the Ministry of Social Affairs and Health.
The parties that have concluded a collective agreement must submit the collective agreement and the associated documents to the Ministry of Social Affairs and Health within one month of the signing of the agreement. The employer party must submit a copy of the agreement in writing and by e-mail so that the generally applicable agreement can be published on the Internet.
The parties to a collective agreement are responsible for ensuring that its provisions are observed.
Mediation in labour disputes
A system of mediation in labour disputes has been established for dealing with conflicts between parties in working life. The mediation system has been set up for the labour market organisations so that disputes can be resolved through negotiation.
In cases of mediation in labour disputes the negotiating partners are assisted by a national conciliator and conciliators. The labour market central organisations may also use a national conciliator to assist them in concluding a collective agreement.
Litigations over the content or breaches of collective agreements can be referred to the Labour Court. The Labour Court’s jurisdiction relates to a collective agreement’s legitimacy, validity, content, scope and the correct interpretation of any of its clauses. The Labour Court can also decide on how much in compensatory damages is to be paid out following unlawful industrial action. Its decision is final.
Legal disputes over an employment relationship not linked to a collective agreement binding on the employer by virtue of the Collective Agreements Act are dealt with by general courts.
Ongoing projects
The Orpo-government's labour market reforms
Publications (abstracts in english)
- Relationship between the obligations imposed by the EU Minimum Wage Directive
and Finnish legislation and practice, 2024 - Coverage of collective agreements in 2021/2022, 2024
- Organisation of Wage and Salary Earners in 2021, 2023
- The report of the working group preparing mechanisms for resolving disputes over the choice of collective agreements, 2022
- Report on the mechanisms for resolving disputes relating to the choice of collective agreements and to the functioning of the mediation system, 2021
- Report on the current state of local collective bargaining and the measures
for promoting it, 2021 - Current status and conditions for promoting local collective bargaining, 2020
- The systems and their developments of local agreements in some European countries, 2016
- Compliance with the regulations in collective agreements, 2013
- Report on European industrial peace system, 2011
Further information
Law-drafting: Katariina Jämsén, katariina.jamsen(at)gov.fi
News
Amendments to the conciliation system to enter into force on 1 January 2025
Government sends its proposal on developing the conciliation system to Parliament
Plan to enhance the labour market model sent out for comments
Amendments to industrial peace legislation to enter into force on 18 May
Study to probe into disputes concerning the choice of applicable collective agreement and the conciliation system
Janne Metsämäki continues as conciliator
Vuokko Piekkala appointed as National Conciliator
Related websites
- Collective Agreements Act
- Act on Confirmation of the General Applicability of Collective Agreements
- Generally binding Collective Agreements (in Finnish)
- Obligation to deliver a collective agreement, confirmation of general applicability (MSAH)
- Osha: Collective agreement
- National Conciliator's Office
- Act on Mediation in Labour Disputes
- Valtioneuvoston asetus työriitojen sovittelusta (in Finnish)
- Act on the Labour Court (MJ)
- Labour Court (MJ)