Questions and answers on easier dismissal in small enterprises

On 8 November, the Finnish Government submitted to Parliament a proposal to amend the Employment Contracts Act with regard to the section on termination grounds related to the employee’s person. The amended act is due to come into force on 1 July 2019.

The Government proposes to amend the grounds for termination related to the employee’s person (i.e., dismissal) in the Employment Contracts Act so that the employer’s number of employees should be taken into account when assessing the proper and weighty nature of the reason for dismissal. This would mean in practice that the assessment would take into account smaller employers’ limited resources to bear the consequences of their employees’ breach or neglect of obligations arising from the employment relationship.