Government proposal concerning the discontinuation of Työkanava Ltd circulated for comments
In its negotiations on the General Government fiscal Plan for 2025-2028 in the spring 2024 spending limits discussion, the Government decided to propose to Parliament, as part of measures aimed at restoring public finances, the discontinuation of the funding reserved for Työkanava Ltd and the repeal of the company's legislation. The company's operations would be discontinued altogether.
The Ministry of Economic Affairs and Employment requests comments on the Government proposal to repeal the Act on the Työkanava Ltd. At the same time, the unemployment Security Act and the Act on the Organisation of Employment services would be amended. Statements can be issued until 24.6.2024. The Government proposal is to be submitted to Parliament in autumn 2024. The aim is that the legislative amendments would enter into force on 1.1.2025.
Työkanava Ltd employs people with impaired capacity to work
Työkanava Ltd is a special assignment company wholly owned by the Finnish State. Its task is to employ people with impaired capacity to work who are in the most difficult labour market position. The provisions concerning the company’s operations were laid down in an Act that entered into force on 1 July 2022. The Ministry of Economic Affairs and Employment is in charge of the ownership steering of the company.
Työkanava employs people with impaired capacity to work in an employment relationship and sells their work input to its customers. The first employees started to work for the company in January 2023. The company’s objective is to improve and support the labour market skills and other competences of its employees so that they could be employed independently in the open labour market.
The employee’s remuneration and other terms of employment at Työkanava are determined under employment legislation and the applicable collective agreement. Työkanava Ltd is responsible for the induction and guidance of its employees at the workplaces.
A person with impaired work capacity who wants to work at Työkanava must be registered as an unemployed jobseeker with TE services. TE authorities at TE Offices and local government pilots on employment assess the suitability of job seekers for Työkanava on the basis of criteria laid down in the Act (Act on Työkanava, section 4). The decision on the suitability for Työkanava is always made by the TE authority.
The services produced by the company are priced on market terms. Työkanava’s pricing is monitored by the advisory board for Työkanava Ltd, the Finnish Competition and Consumer Authority and the Ministry of Economic Affairs and Employment as part of the company’s ownership steering.
Työkanava was established as part of the aim of Prime Minister Sanna Marin’s Government to promote the employment of people with impaired capacity to work and to develop the intermediate job market in a new way.
