The Act Amending the Co-operation Act: Key changes for the management

The Act Amending the Co-operation Act (Laki yhteistoimintalain muuttamisesta) (252/2025) was implemented on July 1, 2025. A key change is that the threshold for applying the law is raised to companies regularly employing at least 50 workers.

Through the legislative amendment, the minimum time for restructuring negotiations is also shortened.The Government Programme’s entries on amendments to the Co-operation Act are divided into two phases. The second phase of the legislative project, potential changes to the administrative representation of staff, is currently being prepared by a tripartite group, whose term of office ends on December 31, 2025.

The following key points should be noted by company management in light of the new law:

The minimum period for change negotiations is reduced to three weeks or seven days, depending on the matters to be negotiated and the number of employees at the company or organisation. The seven-day period applies, for example, to dismissals, layoffs, or unilateral changes to essential terms of employment contracts affecting fewer than ten employees, as well as when the total regular workforce is fewer than 50 employees.

A new deadline related to the termination of employment contracts is introduced in certain situations. Employment contracts may end at the earliest 30 days after the negotiation proposal has been submitted to the employment authority. This deadline applies when the employer submits a negotiation proposal for plans to dismiss at least ten employees for production-related or financial reasons.

The threshold for applying the law is raised to companies regularly employing at least 50 people, but certain obligations remain for employers with 20–49 employees:

• The practice of continuous dialogue is maintained, although related procedures are significantly simplified.
• The obligation to conduct change negotiations in cases of personnel reduction remains, but the scope of situations to which it applies is greatly reduced.
• The law’s provisions regarding transfer, merger, and division of business will continue to apply unchanged.

To ensure your company complies with the new law and avoids potential sanctions, we recommend that you reach out to us for a consultation. With our expertise, we can help you navigate this transition effectively.

(Source: Finlex)