Planned changes to the statute of limitations for working hours and annual leave claims in Finland
Planned Changes to the Statute of Limitations for Claims on Working Hours and Annual Leave in Finland
A legislative reform may be coming to Finnish labor law, as a working group appointed by the Ministry of Justice is reviewing the statute of limitations for claims related to working hours and annual leave. The goal is to clarify the current legislation, where court practice has revealed conflicting interpretations, particularly regarding applicable limitation and filing periods.
Current statute of limitations for working hours and annual leave claims
The statute of limitations and filing deadlines for claims related to working hours and annual leave currently depend on whether the claim is based directly on the law or on a collective agreement.
The Supreme Court of Finland (KKO) has ruled that the limitation period under the Working Hours Act also applies to claims based on collective agreements. This results in a shorter filing period.
The Labour Court (TT), on the other hand, has ruled that for claims based on collective agreements, the longer limitation periods of the Employment Contracts Act apply.
Similar uncertainty exists for annual leave claims when the right to leave is based on a collective agreement. These conflicting rulings have created legal uncertainty for both employers and employees.
Ministry of Justice examines need for legislative clarification
Due to these differing interpretations, the Ministry of Justice has appointed a working group to assess whether the rules on limitation and filing periods should be clarified. The group's task is to prepare a possible legislative proposal that would bring greater clarity and predictability to the statute of limitations for working hours and annual leave claims.
Why are these changes significant?
Clear and unambiguous legislation would:
Reduce uncertainty in the labor market
Make dispute prevention easier
Better safeguard the legal rights of both parties
Decrease the number of court proceedings
As the working group's review progresses, it is important to closely monitor any legislative developments, as they directly affect employer practices and claim filing deadlines.
We will continue to follow the legislative process and keep our clients informed of any updates.
Do you need expert advice on employment law in Finland?
Our specialists are happy to assist you with questions related to working hours claims, annual leave claims, and contract practices.
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