Private Employment Agencies Convention, 1997 (No. 181) - Finland (Ratification: 1999)

Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

Article 8 of the Convention. Migrant workers. The Committee notes the detailed information provided by the Government relating to the reform of the legislation on the posting of workers to Finland. The Government indicates that the reform was undertaken to more closely align the Finnish Act on the Posting of Workers with European Union Directive 2014/67/EU on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services. The 2020 amendments introduced to the Act on the Posting of Workers (Act) provides for the extension of applicable collective agreements to transfers within a subcontracting or corporate group and expands the obligations of user enterprises, among other things, by requiring them to inform future posted workers about the terms and conditions of their employment. The Committee notes that the Act imposes restrictions on the right of temporary work agencies to offset receivables against an employee’s salary. The Committee requests the Government to provide detailed updated information on the nature, scope and impact of the measures taken to provide adequate protection for and prevent abuses of migrant workers placed in Finland by private employment agencies. The Government is also requested to indicate which employers’ and workers’ organizations were consulted with respect to the measures taken. In addition, the Committee requests the Government to provide information on any bilateral agreements concluded in this respect (Article 8(2)).

Articles 10, 11, 12 and 14. Adequate protection of workers employed by private employment agencies and allocation of responsibilities between private employment agencies and user enterprises. Adequate machinery and procedures for the investigation of complaints. The Government refers to the 2015 amendments to the Act on the Contractor’s Obligations and Liability when Work is Contracted Out (1233/2006). It indicates that the amendments facilitated the overall application of the legislation, expanding the obligations of public and private user enterprises to verify, prior to concluding a contract with a temporary employment agency that the agency adheres to occupational safety and health and social security standards and is not barred from providing mediation services. The 2015 amendments also increased to up to €20,000 the amount of the fines that can be imposed on user enterprises in the event that they do not comply with their obligations in this respect. The Committee further notes the Government’s indication that, as part of the 2018 EU project on Occupational Safety in Temporary Work Agencies, the Temporary Work Agencies as Employers 2020–2021 project and the User Companies 2020–2021 project, 874 occupational safety and health inspections were conducted in private employment enterprises between 1 June 2016 and 31 May 2021, in the following categories: 781 (labour recruitment services); 782 (provision of agency and interim labour); and 783 (other personnel acquisition services), pursuant to which 1,494 guidelines and 233 improvement requests were issued. The Committee requests the Government to continue to provide updated information on the application of these provisions of the Convention.

Article 13. Cooperation between the public employment service and private employment agencies. The Government reports that, since 2016, to enhance the effectiveness of the public employment services, pilot projects have been carried out through private employment agencies (PEAs). The pilot projects focus on young persons through performance-based procurement of services and as part of regional government reforms. The Committee requests the Government to provide a description of the pilot projects and their impact on the placement of young persons into lasting employment, and to indicate the nature and outcome of consultations held with the most representative organizations of employers and workers in relation to the conditions of these projects and other cooperation activities undertaken (Article 13(1)). The Government is further requested to continue to provide information on the measures taken or envisaged to promote cooperation between the public employment service and private employment agencies.

Practical application of the Convention. The Committee notes the Government’s indication that, according to Statistics Finland’s 2019 Labour Force Survey, there were some 46,000 temporary workers in Finland. The Committee requests the Government to continue to provide updated information on the application of the Convention in practice, including on the number of private employment agencies operating in the country, extracts from reports of the labour inspection services and information on the number of workers covered by the Convention. In addition, the Government is requested to indicate whether courts of law or other tribunals have rendered judgments involving questions of principle relating to the application of the Convention (parts IV and V of the report form).

Direct Request (CEACR) - adopted 2015, published 105th ILC session (2016)

The Committee notes the observations made by the Confederation of Finnish Industries (EK) and the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA) communicated with the Government’s report.

Articles 11 and 12 of the Convention. Rights of workers employed by a private employment agency. Allocation of responsibilities between private employment agencies and user enterprises. In reply to the Committee’s previous comments, the Government indicates in its report that workers employed by private employment agencies are protected in case of insolvency of their employer in the same manner as other employees, and they are also treated equally in terms of statutory social security benefits. Private employment agencies have the same responsibilities as other employers in terms of contributing to pay security and paying social security benefits, as well as a responsibility to provide workers with accident insurance in case of occupational diseases and accidents. The Committee requests the Government to continue to provide practical information on the application of these provisions of the Convention.

Article 13. Cooperation between the public employment service and private employment agencies. In its observations, the EK indicates that it is most satisfied with the fact that the Government was invited to produce a report on how cooperation between public and private employment services has been promoted and regularly reviewed. The AKAVA indicates that the competences of private employment services are to be utilized more with respect to employment, and perhaps in closer cooperation with the public authority. The AKAVA takes a positive view of the strengthened role of private services in employment services. The Government indicates in this regard that, according to the Act on Public Employment and Business Service, the Ministry of Employment and the Economy (MEE) has the right to receive information from private employment agencies. The MEE did not separately collect such information during the reporting period, but rather received information through partnership cooperation. The cooperation strengthens the functioning of the labour market and promotes the availability of labour for employers and swift employment for jobseekers. The Government indicates that cooperation between public and private employment services is being increased in line with MEE policies. The Committee notes that the MEE and Private Employment Agencies Association (HPL) signed a cooperation agreement on 26 February 2015, aiming at improving the effectiveness of employment services and finding more jobseekers jobs through temporary agency work. As private employment services develop as an industry, the MEE will re-evaluate the cooperation opportunities, roles and tasks between public and private employment services. The Committee requests the Government to continue to provide information on the manner in which efficient cooperation between the public employment service and private employment agencies is promoted and reviewed periodically.

Application of the Convention in practice. The Government indicates that, between 1 January 2010 and 28 April 2015, the Occupational Safety and Health Authorities conducted 467 inspections in enterprises under categories 781 (private employment services), 782 (temporary agency work) and 783 (other human resource services). The Committee notes that, as a result of the inspections, 1,123 guidelines and 115 improvement notices for action were issued. The Committee requests the Government to continue to provide information relevant to the practical effect given to the Convention, including extracts from reports of the inspection services and information on the number of workers covered by the Convention.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Part V of the report form. Practical effect given to the Convention. The Committee notes the Government’s report received in October 2010 and the comments by the Central Organization of Finnish Trade Unions (SAK) and the Finnish Confederation of Professionals (STTK) attached to the Government’s report. The Government indicates that, in 2008, approximately 18,100 companies and public bodies and some 1,400 households used the services of private employment services. In comparison to 2007, the number of companies or public bodies using private employment services decreased slightly, whereas the number of household users increased. The peak in companies using hired labour was in 2004, when nearly 21,000 companies used hired labour. The number of temporary work agencies was approximately 100,000 in 2008, with temporary agency workers representing 3.7 per cent of the entire labour force. Approximately 388,000 employment contracts for temporary agency work were concluded in 2008 and the average duration of a temporary agency worker’s employment relationship was 32 days. In the same year, a total of 4,400 people were recruited through private employment agencies (direct recruitment). In 2007, the corresponding number was 7,400 people. Respectively, the number of people recruited as a result of temporary agency work was around 4,900 in 2008 and 5,800 in 2007. The Government further reports that although figures for 2009 were not available when the report was prepared, it was apparent that the activity of private employment agencies diminished significantly due to the recession. The Committee notes that the Private Employment Agencies’ Association, which includes the majority of private employment agencies operating in Finland, adopted a mandatory authorisation system for its members in the beginning of 2010. The Government reports that the system is challenging. Authorisation is granted by a board of representatives of employer and worker organizations and the Ministry of Employment and the Economy. The Government further indicates that it is anticipated that this approach will further simplify the operating principles of the private employment sector and enhance the reliability of its operations. The Committee notes that a tripartite working group conducted a research on temporary agency work and, on the basis of their report, four legislative amendments were drafted and entered into force in 2009. These amendments enhance the status of temporary agency workers, as they enhanced the legislation’s applicability with regards to the special characteristics of temporary agency work. In addition to legislative amendments, the tripartite working group prepared a guidebook on temporary work for temporary agency employers and workers. The Committee notes the comments by the SAK and STTK indicating that, despite the statistics maintained by the Ministry of Employment and the Economy, there is no information on whether the rights of temporary agency workers are being met. For instance, no information is available on how many temporary agency workers’ employment contracts are valid indefinitely and how many are fixed-term contracts. In the opinion of the workers’ organizations, information on the duration of employment contracts and other factors pertaining to the temporary agency worker would be required and would enable clarification of whether temporary agency workers are provided with sufficient protection as required by the Convention. The Committee would appreciate continuing to receive information relevant to the practical effect given to the Convention, including extracts from reports of the inspection services and information on the number of workers covered by the Convention.

Articles 11 and 12 of the Convention. Protections for workers and responsibilities of private employment agencies and user enterprises. In reply to the previous comment, the Government lists in its report the binding collective agreements on temporary agency work concluded during the reporting period. It also reiterates that the provisions of the Occupational Safety and Health Act, the Employment Contracts Act and of the new Annual Leave Act cover hired workers on the same terms as all other workers. The Government further indicates that due to the divided nature of the employer obligations related to temporary agency work, compliance with certain employer obligations related to temporary agency work may require cooperation between the temporary agency and the user enterprise. Unless cooperation and information exchange run smoothly, problems may arise, especially in situations where compliance with employer obligations is sanctioned. In this regard, the Committee notes that a special provision was added to the Employment Contracts Act concerning the notification obligation between the temporary agency and the user enterprise. The aim of this provision is to improve the concerned parties’ right to receive information and ensure that the temporary agency can meet its obligations as an employer. The Committee invites the Government to specify the manner in which adequate protection is guaranteed for workers employed by private employment agencies with regard to compensation in case of insolvency and statutory social security benefits (Article 11(e) and (i)). Please also indicate the respective responsibilities of private employment agencies and user enterprises with regard to statutory social security benefits (Article 12(d)).

Article 13. Cooperation between the public authorities and private employment agencies. The Committee notes that the partnership project for finding new modes of cooperation between public and private employment services was brought to an end as a special project in 2008. This cooperation produced common principles of operation related to, for example, job advertising. The partnership project did not succeed in discovering new approaches to finding employment for jobseekers that are in a less favourable position in the labour market. However, the Government indicates that the Public Employment Services Act was amended in 2010 which allows private employment agencies to find job placements, or hire out to another employer, employees who are in a subsidised employment relationship. It further indicates that this amendment is expected to improve the employment opportunities of jobseekers when they are temporary agency workers. The Committee invites the Government to include in its next report information on the manner in which efficient cooperation between the public employment service and private employment agencies is promoted and reviewed periodically.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

1. The Committee notes the Government’s report received in September 2005. It also notes the comments included by the Central Organization of Finnish Trade Unions (SAK) and the Finnish Confederation of Salaried Employees (STTK) in the Government’s report. In reply to its previous direct request, the Government indicates that, according to the study conducted on the activities of private employment agencies, 13,200 companies used hired labour and thus hired 47,500 employees in 2003. The results of the study also indicate that the average duration of the hired labour relationship was 66 days. A total of 5,600 people were exchanged for work. The Committee would appreciate continuing to receive information relevant to the practical effect given to the Convention (Part V of the report form). Please also provide additional information on the following points.

2. Articles 11 and 12 of the Convention. The Government indicates that national collective agreements and company agreements concerning workers hired by private employment agencies have recently been concluded. It also indicates that the provisions of the Occupational Safety and Health Act, the Employment Contracts Act and of the new Annual Leave Act cover hired workers on the same terms as all other workers. The Committee invites the Government to continue to report on collective agreements concerning hired-labour employees that might be concluded during the period covered by the next report. It also requests the Government to indicate the manner in which adequate protection is guaranteed for workers employed by private employment agencies with regard to compensation in case of insolvency and statutory social security benefits (Article 11 (e) and (i)). Please also indicate the respective responsibilities of private employment agencies and user enterprises with regard to statutory social security benefits (Article 12(d)).

3. Article 13. The Committee notes that the Ministry of Labour launched in 2005, a partnership project with the Private Employment Agencies’ Association, which aims at finding new forms of cooperation between public and private employment services. The Committee asks the Government to keep it informed of the results that have been achieved in this regard.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes with interest the first detailed report sent by the Government, which covers the period ending in May 2001. It notes that a study was conducted in the spring of 2001 on the activities of private employment agencies in 2000. The Committee would be grateful if the Government would send a summary of the conclusions or recommendations made by the study, together with all information relevant to the practical effect given to the Convention (Part V of the report form).

Articles 11 and 12 of the Convention. The Committee notes the observations of the Central Organization of Finnish Trade Unions (SAK), according to which hired-labour employees will continue to be in a weaker position than other employees because their work consists largely of fixed assignments. Further, SAK states that access to occupational health care, for instance, is sporadic. As to collective bargaining for hired-labour employees, SAK notes that there is no specific union representing this category of workers. In SAK’s view, the trade union which has negotiated the collective bargaining agreement for its sector is also the best placed to represent employees hired out to user companies by hired-labour providers. The Committee notes that, under Article 11, measures must be taken to ensure adequate protection for workers employed by private employment agencies, inter alia as to collective bargaining (b), working conditions (d), occupational safety and health (g), compensation in case of occupational accidents or diseases (h), compensation in case of insolvency (i) and maternity protection and benefits and parental protection and benefits (j). The Committee hopes that in its next report the Government will indicate whether measures have been taken to overcome the difficulties referred to by SAK and that, more generally, it will describe the manner in which effect is given to each of the abovementioned provisions. Please also indicate, in accordance with Article 12, the respective responsibilities of private employment enterprises and user enterprises in the abovementioned fields.

The Government is also asked to indicate the manner in which adequate protection is guaranteed for workers employed by private employment agencies with regard to statutory social security benefits, and the respective responsibilities of private employment agencies and user enterprises (Articles 11(e) and 12(d)).

Article 13. The Committee also notes the observations from the Employers’ Confederation of Service Industries in Finland (Palvelutyönantajat) to the effect that cooperation between public and private employment exchange services, required by the Convention, is not working as effectively as it might, and that private employment agencies consider that labour hiring by government agencies constitutes unfair competition and hinders such cooperation. The Committee refers to its observation of 2001 on the application of Convention No. 122 and requests the Government to provide additional information on the manner in which conditions to promote cooperation between the public employment service and private employment agencies are established and periodically reviewed.