How to Take Action on Unfair Dismissal in Finland (2026): Time Limits, Likely Compensation and How to Bring a Claim

Last reviewed: 19 May 2026

If you have been dismissed from your job in Finland and believe the termination was unjustified, you may be entitled to substantial compensation, but strict time limits apply and you must act quickly. The Employment Contracts Act amendments that took effect on 1 January 2026 lowered the dismissal threshold from “proper and weighty reason” to “proper reason,” making it easier for employers to terminate employment relationships and harder for employees to rely on the protections they previously enjoyed. This guide explains, step by step, how to take action on unfair dismissal under Finland’s updated legal framework, including who can claim, when to file, where to bring proceedings, and what level of dismissal compensation Finland’s courts typically award.

Whether you are a Finnish national or an expatriate working under a Finnish employment contract, the procedural steps and deadlines covered below apply to you.

What Counts as Unfair Dismissal in Finland (2026)

Under the Employment Contracts Act (Työsopimuslaki, 55/2001, as amended), an employer may terminate an employment contract only when there is a “proper reason” (asiallinen syy) connected either to the employee’s person or to the employer’s financial and production-related circumstances. The 2026 amendment removed the additional requirement that the reason also be “weighty” (painava syy), a change that the Finnish Government described as necessary for labour-market flexibility. In practice, the threshold for a lawful dismissal is now lower than it was before 1 January 2026.

A dismissal is unfair whenever the employer cannot demonstrate a proper reason. Common scenarios that give rise to unfair dismissal claims in Finland include the following:

• Insufficient performance management. The employer dismissed the employee for alleged poor performance without first issuing a warning or giving a genuine opportunity to improve.
• Sham redundancy. The employer cited financial or production-related grounds but was in fact recruiting replacements or redistributing the same duties to other staff shortly after dismissal.
• Disproportionate response to misconduct. The alleged misconduct was minor, and the employer moved directly to termination without considering lighter alternatives.
• Procedural failures. The employer failed to hear the employee before making the termination decision, as required by the Act.

Automatically Unfair Reasons

Certain dismissal grounds are prohibited outright, regardless of whether the employer claims a “proper reason.” These include:

• Pregnancy, parental leave or family leave. Terminating an employee because they are expecting a child or exercising their right to statutory leave.
• Trade-union membership or activities. Dismissal connected to the employee’s participation in lawful union activities or collective action.
• Exercising statutory rights. For example, filing an occupational safety complaint with the Regional State Administrative Agency or raising a pay-equity concern.
• Discrimination. Dismissal based on age, gender, origin, religion, disability, sexual orientation or any other ground protected under the Non-Discrimination Act (Yhdenvertaisuuslaki, 1325/2014) or the Act on Equality between Women and Men (Tasa-arvolaki, 609/1986).
• Employee illness. Illness alone does not constitute a proper reason for dismissal unless it substantially and permanently reduces the employee’s ability to perform the essential duties of the role.

If any of these automatically unfair reasons applies, the dismissal is unlawful even under the relaxed 2026 standard, and the likely compensation award is at the higher end of the statutory range.

Timing and Deadlines: Act Fast on Unfair Dismissal in Finland

Time limits are the single most important procedural point for anyone considering how to take action on unfair dismissal. Under Chapter 12, Section 2 of the Employment Contracts Act, a claim for compensation arising from unlawful termination must be brought within two years of the date the employment relationship ended. This is not the date you received the dismissal letter, it is the date your notice period expired and your employment formally concluded.

While the statutory limitation period of two years may appear generous compared to the much shorter filing windows in other jurisdictions, industry observers caution against waiting. Evidence deteriorates, witnesses move on, and employers restructure. The practical advice is to initiate your claim within the first few weeks of the dismissal taking effect.

If your dismissal also involves a discrimination element, there is an additional avenue: a complaint to the Non-Discrimination Ombudsman or the Occupational Safety and Health (OSH) authority may be filed while you simultaneously pursue a court claim, but each body has its own procedural time frames.

How to Calculate the Filing Deadline, Worked Example

The statutory notice period in Finland varies based on the duration of the employment relationship. For employer-initiated terminations, it ranges from 14 days (for employment of up to one year) to six months (for employment of more than 12 years), unless a collective agreement provides otherwise. Your notice period directly affects when the limitation clock begins, so confirm the exact end date of your employment before calculating any deadline.

How to Take Action on Unfair Dismissal in Finland, Step by Step

The following six steps outline the practical process for bringing an unfair dismissal claim. While every case differs in its details, this framework applies to most employees dismissed under a Finnish employment contract after the Employment Contracts Act 2026 amendments.

Step 1, Check Your Contract, Dismissal Letter and Internal Appeal Options

Begin by reading three documents carefully: your written employment contract, the dismissal letter, and any applicable collective agreement (työehtosopimus). The dismissal letter must state the reason for termination. If it does not, this is itself a procedural failing that strengthens your claim. Check whether your contract or collective agreement provides for an internal appeal or grievance procedure. If one exists, use it, not because it is a legal prerequisite to a court claim, but because the employer’s response to your appeal can become valuable evidence.

Step 2, Gather Evidence

Documenting your case thoroughly from the outset is critical. The following evidence checklist covers the most commonly relevant materials:

Save digital copies in a secure location outside your work systems. Once your access to company email and servers is revoked, recovering this material can be extremely difficult.

Step 3, Contact Your Union or a Legal Adviser

If you are a member of a trade union, contact your union representative immediately. Finnish unions routinely provide legal assistance for unfair dismissal claims, often at no additional cost. Union lawyers are experienced in negotiating with employers and can assess whether your case is strong enough to proceed to court. If you are not a union member, consult a qualified employment lawyer. An initial assessment of your case typically takes one or two meetings and will clarify whether you have viable grounds for an unfair dismissal claim under the Employment Contracts Act 2026.

Step 4, Consider Conciliation and Mediation

Before filing a court claim, consider whether the dispute can be resolved through conciliation. Finnish law does not require mandatory pre-action conciliation for dismissal disputes in the same way as some other jurisdictions. However, the district court may refer the case to court-annexed mediation at any stage, and many collective agreements include dispute-resolution mechanisms. Reaching a settlement through mediation is often faster and less costly. Industry observers expect that post-2026 settlement negotiations will become more common, as employers may prefer to resolve borderline cases rather than test the new “proper reason” threshold in court.

Step 5, File a Claim with the District Court

Unfair dismissal claims in Finland are filed with the general district court (käräjäoikeus) that has jurisdiction over the place where the work was performed or where the employer is domiciled. There is no specialised labour tribunal for individual dismissal disputes; the district court handles these cases as civil matters. To file, you must submit a written application (haastehakemus) setting out the facts, the legal grounds, and the compensation or other remedy sought. Court filing fees are modest, typically in the range of a few hundred euros, but legal representation costs represent the larger financial consideration. Your lawyer or union representative will prepare the application on your behalf.

Step 6, What to Expect at Hearing and Settlement Stages

After filing, the court will schedule a preparatory session (valmisteluistunto) where both parties present their positions and the court explores whether settlement is possible. If the case is not settled, it proceeds to a main hearing (pääkäsittely). The entire process, from filing to judgment, typically takes between six and eighteen months at the district court level, depending on complexity and the court’s caseload. Either party may appeal the district court’s decision to the Court of Appeal (hovioikeus), which can add a further twelve months or more.

Where to File an Unfair Dismissal Claim in Finland

Understanding the correct forum is essential for employees weighing how to take action on unfair dismissal. The primary options are as follows:

• District court (käräjäoikeus). This is the standard forum for individual unfair dismissal claims. The employee files a civil action seeking compensation for unlawful termination. This route is used by both union-represented and non-union employees.
• Labour Court (työtuomioistuin). The Labour Court handles disputes about the interpretation of collective agreements. If your claim turns on whether the employer breached a collective agreement provision (rather than the statutory dismissal threshold), a union may bring the case to the Labour Court on your behalf. Individual employees cannot file directly with the Labour Court.
• Occupational Safety and Health authority. If the dismissal involves a breach of workplace safety obligations or discrimination, a parallel complaint can be filed with the Regional State Administrative Agency’s OSH division. This does not replace a court claim but can trigger an investigation that supports your case.

For most employees, the district court is the correct starting point. Your legal adviser will confirm which forum applies to your specific circumstances.

Remedies and Likely Dismissal Compensation in Finland

The compensation framework for unfair dismissal in Finland is set out in Chapter 12, Section 2 of the Employment Contracts Act. Where a court finds that the employer terminated the employment relationship without a proper reason, the employee is entitled to compensation equivalent to a minimum of three months’ pay and a maximum of 24 months’ pay. For an employee representative (such as a shop steward), the maximum rises to 30 months’ pay.

Within this range, the court exercises broad discretion. The following factors typically influence the amount awarded:

Reinstatement is not a standard remedy under Finnish law. Courts almost always award monetary compensation rather than ordering the employer to rehire the dismissed employee. Severance pay in Finland, as distinct from statutory compensation, is not guaranteed by law but may be agreed in a settlement or provided under a collective agreement.

The employee also has a duty to mitigate their loss. This means actively seeking new employment and registering with TE Services. Failure to mitigate can reduce the compensation awarded. Any earnings from new employment during the relevant period will typically be taken into account.

Practical Examples: Unfair Dismissal in Finland

Example 1, Dismissed After Returning from Parental Leave

An employee returned from nine months of parental leave to find her role had been filled permanently. The employer cited “restructuring” but could not demonstrate any genuine organisational change. Because pregnancy and parental leave are automatically unfair grounds for dismissal, the employee’s union filed a claim with the district court. The likely outcome in a case like this is compensation at or near the upper end of the statutory range, potentially 18 to 24 months’ pay, given the severity of the breach and the employer’s inability to provide a lawful justification.

Example 2, Dismissed During the Probationary Period

A software developer was dismissed during his four-month probationary period. Under the Employment Contracts Act, either party may terminate the contract during probation, but even probationary dismissals cannot be based on discriminatory or otherwise improper grounds. The employer stated “poor cultural fit” without further documentation. After consulting a lawyer, the employee determined that the vague reasoning could potentially be challenged, particularly if discriminatory motives could be shown. Early indications suggest that, following the 2026 changes, probationary dismissals framed as “cultural fit” issues are facing increased scrutiny where they disproportionately affect particular demographic groups.

How Employers Commonly Respond, and How to Prepare

Employers facing an unfair dismissal claim typically rely on one or more of the following defences: that the employee was given adequate warnings, that a genuine redundancy existed, or that the employee’s conduct was serious enough to justify termination. Settlement offers are common, particularly in the early stages before formal proceedings are filed. An employer may propose a severance package in exchange for a waiver of all claims.

Key red flags to watch for:

• Pressure to sign immediately. Never sign a settlement agreement under time pressure. You are entitled to take the document away, review it, and seek independent legal advice.
• Confidentiality clauses that prevent you from seeking advice. These are unenforceable if they prevent you from consulting a lawyer or union representative.
• Waiver of all claims, including unknown claims. Ensure you understand exactly what rights you are giving up before signing anything.

A qualified employment lawyer can assess whether a settlement offer fairly reflects your losses and the strength of your claim, or whether proceeding to court would yield a better outcome.

Costs, Legal Aid, Unions and Lawyer Help

The cost of bringing an unfair dismissal claim in Finland varies depending on representation. Trade union members typically receive legal assistance as a benefit of membership, covering lawyer fees, court costs and expert opinions. For non-union employees, private legal fees depend on the complexity of the case and the lawyer’s hourly rate, which in Finland generally ranges from €200 to €350 per hour for employment specialists.

Public legal aid (oikeusapu) is available to employees whose income and assets fall below certain thresholds. Applications are submitted to a Legal Aid Office (oikeusaputoimisto), which will assess eligibility and assign a legal-aid lawyer if the criteria are met. Court filing fees for civil claims are modest and typically do not exceed a few hundred euros. Losing the case may result in an order to pay a portion of the employer’s legal costs, though courts have discretion in this area.

Conclusion: Your Immediate Unfair Dismissal Checklist

If you believe you have been unfairly dismissed under the Employment Contracts Act 2026, time is your most valuable resource. While the statutory limitation period is two years from the end of your employment, the practical window for building a strong case is much shorter. Use the following checklist to take action immediately:

• Secure your documents. Save your contract, dismissal letter, emails, performance reviews and payslips in a personal location outside company systems.
• Note the exact date your employment ends. This determines when the limitation period begins to run.
• Contact your trade union or an employment lawyer. Do this within the first week after receiving your dismissal letter.
• Register with TE Services. This demonstrates mitigation of loss and protects your compensation claim.
• Do not sign any settlement or waiver. Take time and seek independent legal advice before agreeing to anything.

Knowing how to take action on unfair dismissal is the first step toward protecting your rights. The 2026 changes to Finnish employment law have made employer-initiated dismissals easier, but they have not eliminated the obligation to act lawfully. Every employee retains the right to challenge a termination that lacks a proper reason, and the compensation available through the courts remains significant.

Timeline of Key Legislative Dates and Effects

Sources

1. Valtioneuvosto, Finnish Government
2. Finlex, Employment Contracts Act (official text)
3. Työsuojelu.fi, Occupational Safety and Health Guidance
4. Ministry of Economic Affairs and Employment (TEM)
5. Hannes Snellman, Finnish Legal Commentary