Before giving notice or laying off an employee, also consider more flexible ways for your company to react to changes in the need for personnel.
Alternative ways could include:
offering other work
arrangement of working hours and working hours reserve
transfer of annual leave
supplementary and further training.
Offering other work
The law requires employers to find out whether alternative work can be offered to an employee at risk of dismissal (open positions already existing in the company).
The employer must also, at its own cost, provide the employee with training required for new tasks that can be considered appropriate and reasonable from the point of view of both parties.
Arrangement of working hours and working hours reserve
Adjustment measures can be mitigated or completely avoided by temporarily rearranging working hours.
The working time bank is a system with which working hours, earned leave or monetary benefits converted into time off can be saved or borrowed. Working time and time off saved in the working time bank are called the components of the working time bank. The order of using the components is not monitored and there is usually no deadline set for using them. Therefore, components can be saved in the working time bank for several calendar years.
The working time bank may save the company from making lay-offs. The working time bank provides flexibility for evening out seasonal work and seasonal fluctuations. Time off is saved in the bank when the company has a lot of orders and used when the volume of orders is low. To counteract long working days or weeks, the employee may have exceptionally long periods of paid leave during quiet times. However, well-being at work should be taken care of during long working days.
Transfer of annual leave
Advancing annual leave is also a possible way of avoiding giving notice or lay-offs in a situation where the need for labour has decreased temporarily. Before ordering the point of time of the leave, the employer must, however, give the employees an opportunity to state their opinions on the timing of the holiday.
The employer and the employee may also agree that the part of holiday exceeding 18 days be taken during the next leave period or thereafter in the form of saved leave. An employee is entitled to save the part of his/her leave exceeding 24 days if it does not cause severe harm to the production and service operations of the workplace.
Supplementary and further training
By training employees, an employer can enhance competence within the company during poor employment situations, thereby improving the company’s competitiveness in the future. The employer may receive subsidies from the state for arranging training. Such training includes TäsmäKoulutus (Precision Training) and MuutosKoulutus (Change Training), provided by the ELY Centre.
However, employers should assess the employees' motivation and commitment to training and any resulting changes in tasks in advance.
Working hour arrangements and flexibility