Lomautua

Lomautua is a Finnish legal concept and practice related to temporary layoffs from employment. It allows an employer to suspend an employment contract for a fixed period due to economic reasons, production downturns, or other significant operational challenges. During a period of lomautus, the employee is not required to work, and the employer is not obligated to pay wages. However, the employment relationship itself remains in effect.

There are specific conditions that must be met for an employer to initiate lomautus. These typically include a demonstrable and substantial financial or production-related reason for the layoff. Furthermore, employers must usually provide a statutory notice period to the affected employees before the layoff can commence. The length of this notice period can vary depending on the employee's tenure and the collective agreement applicable to the workplace.

Employees who are temporarily laid off through lomautus are generally eligible to receive unemployment benefits from the state, provided they meet the criteria set by the unemployment insurance system. The purpose of lomautus is to help businesses navigate difficult economic times without resorting to permanent dismissals, thereby preserving the employment relationship for future recovery. The duration of a lomautus period can be specified in advance or be open-ended, depending on the employer's assessment of the situation. Once the reasons for the layoff cease to exist, the employer is expected to recall the employee to work.