Finland’s response to mitigate the impact of the COVID-19 pandemic

kuvituskuvaa koronablogiin

This document summarizes the initiatives taken in Finland to mitigate the impact of the COVID-19 pandemic.

The 3rd of April

The government has restricted travel to and from the capital region (Uusimaa) on the 28 March and is shutting down restaurants from the 4 April.

On the 31 March the government introduced a financing model for sole entrepreneurs that consists of a fixed sum (up tp 2000 euros/month) to cover fixed expenses such as rents. Entrepreneurs can apply for the financing from municipalities and the scheme will run for 6 months. Entrepreneurs may be entitled to both support and the extended unemployment security.

As of 1 April, employees laid off will be entitled to unemployment benefit even if they are engaged in business activities or studies.

The temporary legislative changes in the cooperation and temporary layoff procedures have been implemented in a large number of collective agreements.

The 27th of March

The country has been in a state of emergency for the second week. The government is planning further measures including shutting down restaurants and restricting travel to and from the capital region (Uusimaa).

Direct support to businesses, mainly through Business Finland and ELY centres, was increased from 200 million to 1 billion euros in a supplementary budget approved by the parliament 27.3. The decision was made based on a recommendation from the parliamentary finance committee.

The amount of workers in co-operation negotiations has increased greatly during the week and currently amounts to 240 000 persons, either at risk, or already being temporarily laid-off. Trade Union focus is now on ensuring that the lay-offs are temporary and do not lead to actual layoffs.

The Ministry of Economic Affairs and Employment has prepared temporary changes to legislation in response to the COVID 19 crises based on the decisions made by the government 20.3.
The Ministry has set up a webpage in English on measures and changes in legislation done in Corona response:

The 20th of March

The government presented a larger package including an extra budget of 400 million that included measures for securing jobs based on the package negotiated by the social partners as well as a package for securing companies. The package in total amounts to 15 billion euros, including 12 billion euros of Finnvera guarantees that banks will be expected to distribute. The government also communicated that they will oversee the economic situation for municipalities and urged municipalities to refrain from temporary lay-offs at this time.

The measures are taken to safeguard people’s livelihoods and business liquidity. Initial actions are directly targeted at people and businesses and are limited to 3 months. The proposed temporary labour legislation applies throughout the labour market. Collective agreements and legislation will be used as tools.

The government also announced that self-employed and freelancers will get access to unemployment benefit during the crises.

Social partners’ proposals to help businesses in the corona crisis – “The initiative aims to support businesses as well as the workers throughout the crisis”

The 18th of March

The social partners including all three trade union confederations STTK, SAK and Akava as well as both employers’ associations EK and KT presented a common package of initiatives to secure jobs and companies. The joint initiatives included temporary reductions in pension contributions for employers and postponement of payments, temporarily increased flexibility in labour legislation speeding up negotiations regarding temporary lay-offs and improvements in unemployment security and increased access to it.

The 16th of March

The Finnish Government declared a state of emergency restricting the movement of people and the closing down of schools. The government presented a first emergency package to support the economy because of the liquidity problem that arose in many companies, notably the service sector. In the evening the government invited the social partners to discuss further emergency measures.