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Holidays with Pay Convention (Revised), 1970 (No. 132) - Finland (Ratification: 1990)

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Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on working time, the Committee considers it appropriate to examine Conventions Nos 47 (40-hour week), 132 (annual holidays with pay) and 175 (part-time work) together.

The Committee notes the observations of the Commission for Church Employers on the application of Convention No. 47, and of the Central Organization of Finnish Trade Unions (SAK) and the Finnish Confederation of Professionals (STTK) on the application of Convention No. 175, communicated with the Government’s report.

A.Hours of work

Article 1 of Convention No. 47. Forty-hour week principle. Application in practice. The Committee notes the adoption of the Working Time Act (872/2019), which preserves the 40-hour week principle in its section 5(1). The Committee also notes that the Working Time Act provides for exceptions or derogations to this principle, as follows: (i) sections 12 and 13 provide that the employer and employee can agree on flexible working hours, pursuant to which regular weekly working hours may not exceed 40 hours on average during a four-month monitoring period; (ii) section 12 specifies that the accumulation of overruns at the end of a monitoring period may not exceed 60 hours; and (iii) section 14 provides for the possibility of introducing a working time bank system at the workplace, whereby working time, earned time off or monetary benefits converted to free time, can be saved and combined. The Committee requests the Government to provide information on the way it ensures that the application in practice ofthese provisions do not contradict the principle of a 40-hour week.

In addition, the Committee notes the observations of the Commission for Church Employers regarding the exclusion of priests, church musicians and other official appointees engaged in spiritual work from the Working Time Act (872/2019). The Committee requests the Government to provide its comments in this regard.

B.Annual holidays with pay

Article 12 of Convention No. 132. Prohibition to relinquish or forgo the right to an annual holiday with pay. Following its previous comments, the Committee notes that section 26 of the Annual Holidays Act (162/2005), as amended, continues to provide that leave can be replaced with monetary compensation if, due to prolonged incapacity for work, it is impossible to grant leave. The Committee notes the Government’s statement in its report that replacing annual holiday with monetary compensation in the event of prolonged incapacity for work has been considered more advantageous for the employee, and that, even in circumstances of prolonged incapacity, the employer and employee may agree that the holiday will be taken after the employee returns to work. The Committee requests the Government to indicate the situations in which this provision has been applied in practice, including the types of situations considered to be prolonged incapacity under section 26 of the Annual Holidays Act (162/2005). The Committee also requests the Government to indicate the legislative provisions, if any, guaranteeing that employers and employees can agree on holidays being taken after the employee’s return to work, even in circumstances of prolonged incapacity.

C.Part-time work

Article 3 of Convention No. 175. Whole or partial exclusions. The Committee notes the Government’s indication in its report that it has excluded from the scope of the Convention the categories of workers to which the Employment Contracts Act (55/2001), the State Civil Servants Act (750/1994), the Municipal Civil Servants Act (304 of 2003), the Working Time Act (872/2019) and the Annual Holidays Act (162/2005) do not apply. The Committee requests the Government to indicate the reasons why these exclusions were judged necessary, in accordance with Article 3(2) of the Convention.

Articles 9 and 10 of Convention No. 175. Measures to facilitate access to part-time work and to ensure voluntary transfer from full-time to part-time work or vice versa. Following its previous comments, the Committee notes that the Government indicates that: (i) according to a 2021 labour survey, 473,000 employed persons in Finland worked part-time, representing 19 per cent of all employed persons, and that less than one-third of those part-time workers would prefer to work full-time; (ii) the Nordic labour market service model, that entered into force in May 2022, provides the organization of an initial interview for jobseekers working part-time followed by a job search discussion every three months; complementary job search discussions following the initial interview may be organised at the jobseeker’s request; and (iii) employers are required to review their labour-related needs every 12 months and to give a well-grounded response in writing to the employees working on a part-time basis who request the possibility of extending their regular working hours. The Committee nevertheless notes that, according to the observations of the SAK and the STTK, involuntary part-time work remains on the rise. The Committee requests the Government to continue to provide information on the results of the application of these measures, and on the number of workers in involuntary part-time work.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Article 12 of the Convention. Prohibition to relinquish or forgo the right to an annual holiday with pay. In its previous comment, the Committee noted that section 26(1) of the Annual Holidays Act, under which annual leave postponed due to incapacity for work may be replaced by monetary compensation, is inconsistent with the principle of the Convention that a cash allowance in lieu of leave is only permitted in the case of termination of employment. In its reply, the Government states that this provision can be applied only in situations in which the incapacity to work has continued for a long time, and therefore does not violate the employee’s right to paid leave. The Committee recalls, in this connection, that the Convention requires that any period of annual paid leave, which may not be taken (for instance due to sickness or injury), be deferred but not lost or compensated (except in the case of termination of employment). The Committee also recalls that in several recent judgments (Case C-350/06 Schultz Hoff, Case C-78/11 Anged) the European Court of Justice has reaffirmed the inalienable character of the workers’ right to an annual holiday with pay and has clearly established that an employee who has not had the opportunity to take the leave cannot have the leave extinguished even if any carry over period has expired. The Committee wishes to emphasize the importance of workers effectively enjoying their right to a period of relaxation and leisure every year. The Committee accordingly requests the Government to take the necessary measures to ensure that monetary compensation may be offered in lieu of annual leave only in the case of any unused leave upon termination of employment.

Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

Article 7, paragraph 2, of the Convention. Payment of holiday pay in advance. The Committee notes that, under section 15 of the new Annual Holidays Act, for a holiday period not exceeding six days, the holiday pay may be given on the employee’s normal pay day. While noting that no analogous provision was included in the previous Annual Holidays Act, the Committee requests the Government to indicate the measures taken or envisaged to ensure that holiday pay is – in all cases – paid in advance of the holiday, as prescribed by this Article of the Convention.

Article 12. Prohibition to relinquish or forego annual holidays. The Committee notes that, under section 26(1) of the Annual Holidays Act, if annual holidays postponed because of incapacity for work cannot be granted within prescribed limits, they may be replaced by monetary compensation. While noting that no similar provision was contained in the previous Annual Holidays Act, the Committee considers that such provision may be run counter to the principle of the Convention that prohibits any agreement to relinquish the right to annual paid leave or to forgo such leave for compensation, except in case of termination of employment. It therefore requests the Government to provide further explanations in this respect.

Part V of the report form. Application in practice. The Committee would be grateful if the Government would continue to provide all available information on the manner in which the Convention is applied in practice, including statistics on the number of workers covered by the relevant legislation, extracts from reports of the labour inspection services showing the number of violations observed and sanctions imposed, copies of collective agreements, etc.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Articles 5, 6, 7, 8, 9 and 10 of the Convention. Referring to section 16(2) of the Annual Holidays Act (272/1973), as amended by Act No. 65/2001, the Committee requests the Government to supply examples of collective agreements which, according to the amendment, may regulate the timing, calculation, accumulation, division and remuneration of holidays differently from the relevant provisions in the Annual Holidays Act.

The Government indicates that it appointed a tripartite committee in March 2001 to prepare, until the end of October of 2003, a total reform of the Annual Holidays Act, taking into consideration recent social and labour market developments and changes in both the national and European Community legislation. The Committee asks the Government to continue to inform it on any further legislative developments related to annual holidays with pay and to supply a copy of the relevant text when it is adopted.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

With reference to its previous direct request, the Committee notes with interest the detailed information provided by the Government in its report. The Committee notes in particular, the Government's indication that after the Committee on Annual Holidays completed its review of the annual leave legislation, and following negotiations between workers' and employers' organizations, the Ministry of Labour appointed a working group, with a deadline of 30 November 1994, to revise the Annual Holidays Act. The Committee requests the Government to indicate whether the annual leave legislation has been amended and to supply a copy of the relevant text when it is adopted.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

I. The Committee notes with interest the information provided by the Government in its first report and requests the Government to provide further clarification on the following points:

1. Article 2, paragraphs 2 and 3. The Committee notes that the Annual Holidays Act does not apply to the family members in a business unless there are non-family members also employed, nor does it apply to any of the employer's family members in agricultural undertakings, irrespective of the status of the other employees. Furthermore, the Annual Holidays Act does not apply to persons paid solely in dividends. The Government is requested to indicate the manner in which the organizations of employers and workers concerned were consulted with respect to these exclusions and to keep the Office informed, in subsequent reports, of any developments in its law and practice in their regard.

The Government has also indicated in its report that separate provisions on annual holidays and holiday compensation exist for certain state part-time and ancillary civil servants as well as fee-paid teachers. The Government is requested to indicate, in its next report, whether these categories of workers are covered by the main provisions of the Annual Holidays Act and, if not, to specify the manner in which the Convention is applied to them.

2. Article 7, paragraph 2. The Committee notes that, under the Annual Holidays Act, holiday pay must be paid in advance of the holiday. The Government has indicated in its report, however, that, for civil servants, holiday pay is paid on the normal pay day. The Government is requested to indicate the measures taken or envisaged to ensure that civil servants are also paid the amounts due to them in advance of the holiday.

3. Article 8, paragraphs 1 and 2. The Committee notes that the division of annual holiday into parts of at least two working weeks is authorized under section 5 of the Annual Holidays Act. Furthermore, the Government indicates in its report that paid holidays for civil servants cannot be granted in more than two parts "against the person's will, without valid reason" and that section 22 of the Annual Holidays Act permits the Works Council to grant exemptions with respect to the rules on interruption of holidays for grave reasons. The Government is requested to indicate the measures taken to ensure that civil servants enjoy at least two uninterrupted working weeks of paid holiday and that exceptions may be granted only if it is so provided in an agreement applicable to the employer and the employed person concerned. The Government is also requested to indicate whether any exemptions have been made to section 5 of the Act by decision of works councils (section 22) and the measures taken or envisaged to ensure that, in any event, workers still enjoy at least two uninterrupted working weeks of holiday, in accordance with this Article of the Convention.

4. Article 9, paragraph 1. The Committee notes that section 4 of the Annual Holidays Act provides that leave is generally provided between the months of May and September and for seasonal workers can be granted within the calendar year in which the holiday credit ends. It further notes that section 22 of the Act permits derogations to this section with respect to the period of leave. The Government is requested to indicate whether any such derogations have been granted and the measures taken or envisaged to ensure, in the case of derogation, that the worker enjoys at least two working weeks of paid holiday within one year, and the remainder of the annual holiday no later than 18 months from the end of the year in respect of which the holiday entitlement has arisen.

5. Article 12. The Committee notes the indication in the Government's report that a contract which reduces an employee's statutory benefits is invalid under the Annual Holidays Act. Section 16 of the Act, however, only provides that an agreement by which the workers's remuneration under the Act is reduced is null and void. The Government is requested to indicate the measures taken to ensure that any agreement to relinquish the right to the minimum annual holiday with pay is null and void, in accordance with this Article of the Convention.

II. The Committee has noted the Government's indication in its report for the period ending 30 June 1990 under Convention No. 91 that a committee was set up in the spring of 1990 to revise the annual leave legislation and to study the defects and shortcomings in the application of the Annual Holidays Act. The Government is requested to keep the Office informed of any measures taken or envisaged to amend the annual leave legislation in the light of this review.