Co-Operation in General

The Act on Co-operation within Undertakings (“Co-determination Act”) regulates co-operation in companies. The Act on Co-operation within Undertakings concerns companies which employ at least 20 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 Act on Co-operation within Undertakings is, in addition to companies, also applied to organizations, trusts and natural persons that practice financial activities. 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.

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 Co-operation 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.