Co-Operation in General

The Cooperation Act regulates co-operation in companies. The Cooperation Act concerns companies which employ at least 50 employees on a regular basis.

The objective of the Act is to:

·       further a working culture at workplaces where the employer and the employees act in co-operation, respecting each other’s rights and taking notice of each other´s benefit,

·       continuously develop the company´s operations and the working community and to improve the company´s profitability and well-being at work,

·       ensure sufficient and timely flow of information between the employer and the employees and

·       ensure the employees´ possibilities to influence decisions made in the company when the decisions concern their employment, working conditions or position in the company.

Integral parts of cooperation are:

1) Continuous dialogue

- Regular co-operation between employer and employee representative

- Work community development plan

- Information given to the employee representative

2) Changing circumstances

- Change negotiations

- Provisions concerning business transfers, mergers and divisions

3) Representation in company administration

- Representation of employees in company’s administration

The Cooperation Act is, in addition to companies, also applied to organizations, trusts and natural persons that practice financial activities and employ at least 20 employees on a regular basis. The Act applies whether or not the financial activities are seeking profit as long as they are financial in nature. The reasoning behind this is to ensure that employees have the possibility to influence matters relating to their employment irrespective of the employer’s organizational form.

However, companies, organizations, and branches that regularly employ between 20 and 49 employees are subject to the provisions of Section 7a of the Cooperation Act on the implementation of dialogue in companies or organizations with 20 to 49 employees; the provisions of Section 16a on the employer's obligation to conduct change negotiations in certain cases; the provisions of Chapter 4 on the business transfer, merger, and division; the provisions of Section 5 on the representation of personnel; and the various provisions of Chapter 6 in the above-mentioned situations.

Provisions of the Act concerning employee representation in company administration are applied to limited companies, co-operative associations, other financial associations, insurance companies, commercial banks, co-operative banks and savings banks that continually employ at least 150 employees in Finland.

There are also other provisions on employees´ participation rights and co-operation in other Finnish laws. For example, on co-operation within Finnish and community-wide groups there are regulations within the Act on Co-operation within Finnish and Community-wide Groups of Undertakings. The Act on Occupational Safety and Health Enforcement and Cooperation on Occupational Safety and Health at Workplaces provides regulation on co-operations on occupational safety. Cooperation on occupational health care is regulated by the Occupational Health Care Act.