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Cooperation negotiations

If your company regularly employs at least 20 employees, it is subject to the Act on Co-operation within Undertakings. Under the Act, you must negotiate changes affecting your employees with them in advance. The purpose of the Act is to improve the company’s operation and the employees’ opportunities to influence their work, working conditions and position in mutual understanding.

Due to the situation caused by coronavirus, the content of this page may not be up to date. Up-to-date information is available at Federation of Finnish Enterprises’s website Kaikki koronasta yrittäjälle (only in Finnish).

Parties in cooperation negotiations

The parties in cooperation negotiations are the employer and the personnel. Both parties can use a representative in the negotiations. For example, the employer may be represented by representatives or the manager of the company’s HR management. The personnel is usually represented by a shop steward, an elected representative or a representative for the cooperation negotiations.  Large companies often handle cooperation negotiations in a joint committee for the employer and the representatives of personnel.

Arrangement of cooperation negotiations

Arrange cooperation negotiations if changes planned in your company will essentially affect the position of your employees. For example, the changes may concern

  • duties
  • working methods
  • arrangement of work
  • arrangement of work premises
  • transfers from one duty to another
  • arrangements concerning regular working hours
  • times of rest and meals.

Arrange the cooperation negotiations so early that your employees genuinely have the opportunity to participate in the negotiations and contribute to the final result. However, the final decisions on the measures are made by your company. Inform your employees about the decisions once the negotiations have ended.

If the cooperation negotiations may lead to lay-offs or personnel reductions, inform the TE Office of the negotiations when they begin at the latest. You can submit the notification to the change security expert for your area's TE Office.

If you have to give notice to employees on financial and production-related grounds, the TE Office will help you to promote the employment of the affected employees according to the principles of protection in the event of restructuring.

TE Office provides support and assistance in situations of change in workforce needs, often related to reducing personnel.


Text edited by: Suomi.fi editorial team
Updated: 6/2/2021