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1. Article 2, paragraph 3, of the Convention. Adequate safeguards against recourse to fixed-term employment contracts. In reply to its 1999 observation, the Committee notes the information contained in the Government’s report for the period ending May 2006 and the State Civil Servants’ Act (No. 750 of 2004) attached to its report. The Committee particularly notes that the Employment Contracts Act (No. 55 of 2001) entered into force on 1 June 2001. With reference to previous comments, the Government states that this Act repealed the provision temporarily extending the possibilities of concluding employment contracts for a fixed-term when demand was unstable for the services in an enterprise (No. 56 of 1997).
2. The Central Organisation of Finnish Trade Unions (SAK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) argue that the protections afforded by the Convention and the Employment Contracts Act are being eroded by the following practice. Employers are hiring employees to work for customers. The employees are hired on fixed-term contracts aligned to the length of the contract between the employer and the customer. The fixed-term contracts are justified on this basis even though the customer’s need for employees is ongoing. According to the SAK and the AKAVA, in this case the provisions on temporary work relations are eluded.
3. With reference to previous comments, the Government explains that according to the Public Employment Services Act (No. 1295 of 2002), the purpose of subsidized employment is to improve the labour market position of a person by promoting placement at work and improving vocational and other skills. Fixed-term contracts are used to support particularly the employment of the long-term unemployed, young persons and disabled workers to prevent the lengthening of periods of unemployment and to level out regional differences in unemployment. In this regard, the Government indicates that at the end of June 2006, 38,300 persons had been employed through the Labour Administration’s employment subsidy measures, 1,400 less than the figures of the previous year. Of those that had been placed, 6 per cent were working for the State, 25 per cent for municipalities and 69 per cent in the private sector, and the objective is to further increase the share of the private sector. The Finnish Confederation of Salaried Employees (STTK) alleges that fixed-term contracts are to a great extent used in the public sector (20–30 per cent of the public sector’s employment relationships) despite the fact that the Employment Contracts Act requires hiring persons for a permanent employment relationship when the need for labour is permanent. The Committee asks the Government to indicate what safeguards have been provided to guarantee fixed-term contracts are not used in practice with the aim of avoiding the protection resulting from the Convention, providing examples of how the notion of “justified reasons” in the Employment Contracts Act is used in public and private sectors. In this respect, the Committee would appreciate receiving information on the subsidized employed persons, the maximum length of use of fixed-term contracts in such instances, and their impact.
4. Article 13. Consultation of workers’ representatives concerning terminations of employment for economic, technological, structural or similar reasons. The Committee notes that the Government indicates in its report that the Ministry of Labour Committee, discussing the reform of the Act on Co-operation within Undertakings (725/1978), proposes the adoption of a new Act. The Committee asks the Government to keep it informed about any legislative change on the consultation of workers’ representatives on terminations of employment for economic, technological, structural or similar reasons.
5. Parts IV and V of the report form. Practical information on the application of the Convention. Please continue providing available information on the manner in which the provisions of the Convention are applied in practice, including any relevant judicial decision involving questions relating to the application of the Convention.
The Committee notes the information contained in the Government's report for the period ending May 1999.
Article 2. 1. With reference to previous comments, the Government explains that Article 9, sections (1) and (2) of the State Civil Servants Act lists the conditions under which a fixed-term contract is permissible, and that Article 56 of the Act states that if a fixed-term contract is not justified under Article 9(1) or (2) and the employer terminates the employment, the worker is entitled to a severance allowance of a minimum of six months' salary and a maximum of 24 months' salary. The Committee requests a copy of this Act, including the most recent amendments, as the copy available in the Office contains amendments only up to 1989.
2. The Government states that it has temporarily amended the Employment Contracts Act for the period from February 1997 through December 1999 to permit the use of fixed-term contracts when demand is unstable for the services in an enterprise. The amendment also removes the prohibition on "chains of contracts" but does not specify whether this measure is also temporary. The Finnish Confederation of Salaried Employees (STTK) considers that the abuse of fixed-term contracts has increased because it is left to the discretion of the employer to determine whether he or she falls within this exception. The Committee would appreciate receiving further information on whether this amendment to the Employment Contracts Act is allowed to expire on 31 December 1999 or is renewed (and if renewed, the Committee requests a copy), whether the lifting of the prohibition on chains of contracts is temporary, and whether consultation with the organizations of employers and workers concerned took place prior to adopting the amendment. It also asks the Government to provide further information on what body determines whether demand for services in an industry is sufficiently unstable for this exception to be invoked.
3. The Central Organization of Finnish Trade Unions (SAK) alleges that there is a high rate of evasion of the laws protecting job security in the hotel and restaurant industries due to contracting out of labour and the use of fixed-term contracts on a rotating basis. The SAK alleges that a substantial number of workers are pressured into becoming self-employed as a means of evading the protection against unjustified dismissal. The Committee asks the Government to provide details on what safeguards exist to prevent recourse to fixed-term contracts or involuntary self-employment, with the aim of avoiding the protection resulting from the Convention, as required by Article 2, paragraph 3.
4. The STTK also points out that the Government has instituted a policy of allowing long-term unemployed workers to be hired on fixed-term employment contracts of at least six months' duration without any work-related grounds. The Committee notes that the use of fixed-term contracts for a limited period in such cases may be justified as part of a policy which attempts to balance the goals of protecting employment and reducing long-term unemployment. However, the Committee stresses that the Government should make every effort, in consultation with workers' and employers' organisations, to minimize the cost to the individuals directly affected. The Committee would appreciate receiving more detailed information on this policy, including its legal basis and the process by which it is implemented, the number of such unemployed persons engaged on fixed-term contracts, the maximum length of use of fixed-term contracts in such instances, and its impact.
Article 11. The SAK alleges that "stand-by" workers (engaged on a part-time basis) can be laid off without notice. The Committee asks the Government to clarify whether part-time workers are also entitled to notice before termination of employment.
The Committee notes the Government's report and the information it contains in reply to its request, as well as the comments made by the Central Organization of Finnish Trade Unions (SAK) and the Finnish Confederation of Salaried Employees (STTK) transmitted with the report. It would be grateful if the Government would supply in its next report further information on the following points.
Article 2, paragraph 3, of the Convention. In its comments, the SAK notes that the State Civil Servants Act does not, in contrast to the Contracts of Employment Act, include any provision against repeated recourse to successive contracts for fixed periods of time. Please indicate whether guarantees have been provided against the use in the civil service of successive contracts for fixed periods of time, with a view to avoiding the protection arising from the Convention.
Parts IV and V of the report form. Please continue to provide the information required on the application in practice of the Convention.
The Committee takes note with interest of the Government's first report on the application of the Convention. It also notes the comments made by the Central Organization of Finnish Trade Unions (SAK) and the Confederation of the Unions for Academic Professionals in Finland (AKAVA) communicated with the Government's report. The Committee would be grateful if, in its next report, the Government would provide additional information on the following points:
Article 1 of the Convention and point I of the report form. The Committee notes the statements made by the SAK and the AKAVA concerning the insufficiency of protection of municipal officeholders against unjustified dismissals. It would be grateful if the Government would supply, with its next report, copies of municipal regulations and official model approved by the Executive Board of the Commission for Local Authority Employers in 1992, to which the Government refers in its report, as well as the texts of the relevant collective agreements, in order to enable the Committee to assess the implementation of the Convention in regard to this category of employed persons, which, according to the report, is not excluded from the application of the Convention.
Article 4. The Committee notes that section 47 of the State Civil Servants Act 755/86 lays down a list of categories of civil servants whose employment may be terminated on certain additional grounds. It would be grateful if the Government would describe in more detail these additional grounds for termination of employment and supply texts of the relevant collective agreements and the relevant decisions of the bodies of appeal, if available.
Article 9, paragraph 3. Please indicate whether bodies of appeal are empowered to determine whether the termination of employment was indeed for reasons based on the operational requirements of the undertaking, establishment or service. Please also indicate the extent to which these bodies are empowered to decide whether these reasons are sufficient to justify the termination.
Article 13, paragraph 1(b). Please indicate by what method of implementation referred to in Article 1 it is ensured that the representatives of the civil servants concerned are given an opportunity of consultation on measures to be taken to avert or to minimize the terminations and measures to mitigate the adverse effect of any terminations on the employees concerned such as finding alternative employment.
Point V of the report form. Please provide general information on the manner in which the Convention is applied in practice, including for example available statistics on the activities of the bodies of appeal (such as the number of appeals against unjustified termination, the outcome of such appeals, the nature of the remedy awarded and the average time taken for an appeal to be decided) and on the number of terminations for economic or similar reasons. Please indicate any practical difficulties encountered in the implementation of the Convention.