Severance Deals Gaining Ground in Finland

An increasing number of workers at large Finnish companies are nabbing severance packages when being laid off, according to YLE’s current affairs programme MOT.

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Terminating staff in Finland has been relatively inexpensive and easy in comparison to practices in other western European states. However Finnish companies are now increasingly paying off axed workers.

Large companies, such as Alma Media, Elisa, Nokia, Kemira, Metso, Perlos, TeliaSonera, UPM and YLE have offered severance pay for dismissed employees. Meanwhile, Cargotec, Finnair and Metsä-Botnia don’t have special severance pay policies in place.

MOT discovered that companies that operate in Finland as well as abroad don’t have universal policies on layoff pay. Nokia Siemens Networks for example offers different severance compensation packages for its employees stationed in Germany than for those working in Finland.

Finnish companies are not legally required to offer special severance pay.

Lähteet: YLE