The four-party alliance government led by the Kansallinen Kokoomus (National Coalition Party-NCP) on Thursday submitted a proposal to Parliament to amend the provisions of the Employment Contracts Act and the Seafarers Employment Contracts Act seeking more flexibility for fixed-term employment contracts. According to the proposed amendments, a fixed-term employment contract could be concluded without a justified reason for a maximum of one year if certain conditions are met, said the Ministry of Economic Affairs and Employment in a press release. The government also proposed to shorten the notice period for lay-offs and to limit the employers obligation to re-employ dismissed employees. According to the proposal, a fixed-term employment contract could be concluded without a justified reason in cases concerning the first employment contract between an employer and an employee. Moreover, such a contract could be concluded if the employee had worked for the same employer previously but the employment relationship had ended more than two years ago. A fixed-term employment contract concluded without a justified reason could not last longer than one year. In total, a maximum of three fixed-term contracts could be concluded without a justified reason. The contract could be renewed up to two times during the year following the conclusion of the first fixed-term employment contract. The combined total duration of the contracts could not, however, exceed one year. Concluding or not concluding a fixed-term employment contract on discriminatory grounds would not be allowed. A fixed-term employment contract concluded in violation of the rules on the employers initiative would be considered to be valid until further notice. The employee and the employer would have the right to terminate a fixed-term employment contract concluded without a justified reason that has lasted for at least six months. The employer would be required to explain the reasons behind the termination, as is the case with employment contracts valid until further notice. At the end of the fixed-term employment contract, the employer would be required to give the employee a reasoned explanation of the possibility to hire the employee for an employment relationship of indefinite duration or for a fixed-term employment relationship concluded for a justified reason. The employer would also be required to offer the employee work in cases where a fixed-term employment contract concluded without a justified reason was about to end and the employer was considering hiring more employees for the task in question or a similar task. After termination of the employment contract, the obligation to offer work would last for a period corresponding to one third of the total duration of the employment contracts concluded with the employee. The period could not exceed four months. The government also proposed that the notice period for lay-offs be shortened from 14 to seven days. This is the period of notice given to an employee before a lay-off. It would be possible for the employer and employees to agree on the use of the statutory notice period for lay-offs in workplaces. Under the government proposal, the re-employment obligation would only apply to employers with at least 50 employees. The re-employment obligation refers to a situation where an employer needs employees for the same or similar tasks for which the employer has dismissed an employee four months earlier for financial or production-related reasons. If the dismissed employee is a jobseeker, the employer is required to offer the employee the work in question. However, the obligation to re-employ would be six months for employment relationships that have lasted at least 12 years. The government proposed that the amended legislation enter into force on April 1, 2026. Earlier in October, 2025, the government also made it easier for employers to terminate employees, which was strongly criticised by the trade unions.