How can a company prepare for change negotiations?

A company can prepare for change negotiations through careful planning and knowledge of legal obligations. Successful preparation requires scheduling the process, preparing documentation, and properly informing personnel. It is especially important to understand the requirements of the Co-operation Act and to ensure that all legal obligations are met during the process.

What are change negotiations and when are they needed?

Change negotiations are statutory co-operation negotiations that an employer must conduct with the staff when significant changes are planned in the company. These negotiations are required in cases of dismissals, reorganizations of operations, or other changes affecting personnel.

The threshold for applying the Co-determination Act (YT-laki) will increase to 50 employees starting from July 1, 2025, up from the previous 20 employees. This means that, going forward, the full Co-determination Act will only apply to companies that regularly employ at least 50 employees. Companies with 20–49 employees will be subject to a simplified dialogue obligation.

Change negotiations must always be initiated when the dismissal of at least ten employees for economic or production reasons is planned within a 90-day period. Additionally, negotiations are required in cases of significant operational changes that affect the status or job duties of personnel.

How does a company practically prepare for change negotiations?

Practical preparations begin with careful preparation of documentation and by scheduling the negotiation process. The employer must gather all necessary information on the grounds for the changes, the alternatives, and their impact on the personnel before starting negotiations.

The preparation process includes the following key steps:

• Clarifying and documenting the grounds for changes and alternatives
• Identifying employee representatives and forming a negotiation team
• Creating a schedule in accordance with statutory deadlines
• Preparation of necessary documents and clarifications
• Advance information to staff about upcoming negotiations

With the reform, negotiation times will shorten starting July 1, 2025, further emphasizing the importance of careful preparation. The employer's responsibility to ensure all required matters are addressed remains the same, even with a shorter negotiation period. For many companies HR expert support in managing change negotiations it is necessary to ensure the legality of the process.

What are the employer's most important obligations in change negotiations?

Employer's duty to inform The most central statutory obligation in change negotiations is that the employer must provide employee representatives with sufficient and accurate information about planned changes, their grounds, and their impact on employees.

Statutory obligations include:

• Initiating negotiations within the deadline before implementing changes
• Providing comprehensive information on the reasons for and alternatives to changes
• Negotiating for a specified minimum period
• Respecting employee rights throughout the process
• Appropriate documentation of all negotiation phases

Employees have the right to sufficient time to familiarize themselves with the information they receive and to prepare for negotiations. They also have the right to propose alternative solutions and comment on the employer's proposals. The employer must process all proposals appropriately and justify their decisions.

The complexity of the process and the scope of statutory obligations often make expert assistance essential. Small and medium-sized enterprises (SMEs) in particular benefit from external support that ensures the legality of the process and supports both the employer and the staff in navigating a demanding change process.

Do you need help managing change negotiations?

Change negotiations are a complex process that requires in-depth legal knowledge and careful planning. Professional support can save time, reduce risks, and ensure the smooth progress of the process for all parties involved. We offer comprehensive Services management of change negotiations and HR matters.

If you need help planning or executing change negotiations, contact our experts. We help your company navigate change processes legally and efficiently.