Government measures in key jurisdictions 5th edition - Flipbook - Page 48
Finland
Employment
•
What financial
support is the
government
•
providing to
businesses and to
individuals on
employment issues? •
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
Employers’ statutory pension contribution, which was temporarily reduced from 1 May
to 31 December 2020, has now been restored to the level before Covid-19 pandemic.
The temporary reduction will be compensated by increasing the employer’s statutory
pension contribution in 2022-2025.
Entrepreneurs are temporarily entitled to unemployment security. The temporary
amendment is expected to remain in force until 31 March 2021. The temporary
improvements on employees’ unemployment security expired on 31 December 2020.
During 2020, the government made several temporary amendments to the
Employment Contracts Act and the Act on Co-operation within Undertakings to
support businesses and employees, but all the amendments expired on 31 December
2020.
•
A temporary Bankruptcy Act came into force in May 2020 and its purpose was to
prevent bankruptcies of debtors that had got into payment difficulties due to the
coronavirus pandemic. The temporary Act expired at the end of January 2021. To
prevent a wave of bankruptcies from February onwards, a second temporary
Bankruptcy Act was brought in. This Act will be in force from the start of February until
the end of September 2021.
•
The new temporary law grants debtors a long period to negotiate their debts with their
creditors. Although the so-called insolvency assumption in the event of payment
default was reinstated, debtors have up to 30 days from a payment reminder to
negotiate payment of their debts. Pursuant to the normal Bankruptcy Act, a debtor is
deemed insolvent by the court if the debtor has not repaid a clear and undisputed
claim that has fallen due within one week of the receipt of a payment reminder.
•
In addition to the above, there have been some temporary amendments to the
Enforcement Code in such way that the exceptional circumstances arising from the
coronavirus pandemic and the financial difficulties resulting from it could be taken into
account in the enforcement proceedings. These temporary amendments are in force
until 30 April 2021.
•
The Finnish government has not introduced new legislation due to the Covid-19
pandemic that would specifically reinforce contracts between commercial
entities and the normal contractual rules apply.
What measures
have been taken
to reinforce
contracts?
48
Government measures in key jurisdictions
