Sanctions

Compensation

Employer, who has deliberately or negligently failed to observe the provisions of the Act on Co-Operation within Undertakings in respect of an employee, whose contract has been terminated or reduced to a part-time contract or who has been laid off shall be liable to pay to the employee, whose contract was terminated or reduced to a part-time contract or who was laid off a maximum indemnification amount of 35.000 euros.

In determining the amount of compensation, account is taken of the nature and extent of the breach of the obligation and its reprehensibility, the employer's efforts to remedy its conduct, the nature of the action taken against the employee, the employer's circumstances in general and other comparable factors. If the employer's negligence can be regarded as negligible in the light of all the relevant circumstances, no compensation may be awarded.

The maximum indemnification amount shall be adjusted in proportion to economic inflation every three years by a government decree.

Fine Sanctions

The system of criminal sanctions applies to obligations relating to change negotiations, for which the Act on Co-operation within Undertakings does not specifically provide for a compensatory sanction. With regard to the obligations to engage in dialogue, only the failure of an employer to comply with an obligation to engage in dialogue, despite the request of the ombudsman, is punishable.

An employer or his representative who, despite being requested to do so by the Ombudsman, intentionally or negligently:

1) fails to organize a minimum number of dialogue meetings,

2) fails to hold a dialogue on the matters provided for by the law,

3) fails to establish or maintain a workplace development plan,

4) fails to provide the employee representative with the information necessary for the dialogue,

5) fails to comply with its obligation to provide information to the employee representative on a regular basis twice a year; or

6) fails to take the initiative of the employee representative to engage in a dialogue

may be fined for breach of the obligation to co-operate.

The employer or its representative may be sentenced for violating the obligation to co-operate, whether intentionally or negligently:

1) fails to comply with or infringes the obligation to provide information on transfers of undertakings, mergers and divisions or its obligations concerning the right of employee representatives to be released from their duties in accordance with the law and the right of employee representatives to receive training in co-operation within undertakings.

2) in any manner other than as referred to in section 44 of the Act on Co-operation within Undertakings (compensatory penalty), breaches its obligations under the amendment negotiations. The punishment for infringing the rights of employee representatives and employee administrators is provided for in Chapter 47, Section 4 of the Criminal Code of Finland. The apportionment of liability between the employer and its representative is governed by Chapter 47, Section 7 of the Criminal Code of Finland. The penalty for breach of confidentiality shall be imposed in accordance with Article 2(2) of Chapter 38 of the Criminal Code of Finland unless a more severe penalty is provided for in an act other than Article 1 of that Chapter.

The Co-operation Ombudsman [Co-Operation Ombudsman] supervises the enforcement of the Act on Co-operation within Undertakings.