A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.
Top story: Finland overhauls employment law in three waves
Finland has pushed through one of Europe’s most sweeping sets of employment law reforms in 2026, with three packages of amendments to the Employment Contracts Act taking effect in January, March and June. Taken together, the changes lower the bar for dismissals, make fixed-term hiring simpler and reduce obligations for smaller employers, in a deliberate effort to cut unemployment and improve conditions for SMEs.
The first wave, effective 1 January 2026, replaced the longstanding “proper and weighty reason” standard for individual dismissals with the lower threshold of a “proper reason.” Employers now have broader discretion to terminate underperforming or non-compliant employees, provided the reason is not minor or arbitrary and the correct procedure is followed. A second set of amendments to the Co-operation Act followed on 1 March, updating consultation processes and notification procedures.
The headline change arrived on 1 June: employers can now offer fixed-term contracts of up to 12 months without needing a justified reason, provided the contract is the first employment relationship with that employee in the previous five years. Five conditions apply: the contract cannot be extended or renewed if shorter than 12 months; either party may give notice after six months; the employer must inform the employee before the contract ends whether continued employment is possible; and the employer must offer any same-or-similar role to the departing employee before hiring externally, for a period equal to one third of the contract’s duration (up to four months). The same June package cut the statutory layoff notice period from 14 to seven days and removed the post-employment re-employment obligation for employers with fewer than 50 staff.
What to do: Employers with Finnish operations should update contract templates to reflect the new fixed-term rules and their five conditions. HR teams need to adjust dismissal procedures to the revised threshold, recalibrate layoff notice timelines and, for companies under 50 employees, review whether collective agreements still impose a re-employment obligation even though the statutory one has been lifted.
Also developing
Germany: An internal working draft proposing amendments to the Working Time Act (Arbeitszeitgesetz) has been circulating within government since June, though it has not yet been officially published. The core proposal would shift the legal framework from a daily maximum of eight hours to a weekly limit of 48 hours, aligning German rules more closely with the EU Working Time Directive. However, only employers covered by collective bargaining agreements would be permitted to negotiate weekly working time arrangements. The draft also introduces a mandatory obligation for all employers to record working hours electronically, with handwritten logs no longer sufficient. The reform is politically contentious: coalition partners have raised significant concerns, and trade unions argue that the existing daily limit already provides sufficient flexibility. What to do: German employers should monitor the legislative process closely, particularly if they are bound by a collective agreement. Those not yet recording working time electronically should begin preparing, as an electronic recording obligation is likely regardless of the outcome on weekly limits.
Belgium: The Belgian Data Protection Authority (GBA) published Decision No. 102/2026 in May, fining the Société Wallonne des Eaux (SWDE) a total of €86,000 for GDPR and Belgian Electronic Communications Act violations related to its employee call recording practices. The case originated from an employee complaint alleging that phone calls were recorded systematically without adequate transparency. The GBA found that SWDE had failed to properly inform employees and callers about the processing of their personal data and had not met its obligations under GDPR Articles 12 to 14. The authority imposed reprimands for multiple violations alongside the fine and ordered SWDE to comply with GDPR transparency requirements within four months. What to do: Employers recording calls for training, quality or compliance purposes should review their data protection impact assessments, privacy notices and employee information materials. Staff must be clearly informed about what is recorded, why, how long recordings are retained and who has access. The SWDE decision confirms that a general reference to “quality purposes” is not sufficient.
Norway: Two changes that took effect on 1 January 2026 are now fully bedded in and worth flagging for employers who may have missed them. First, the exception allowing companies to set their own retirement age as low as 70 has been abolished, establishing a uniform legal right for all employees to work until the age of 72. Second, an amendment to the Working Environment Act now explicitly states that the employer’s duty to ensure a fully acceptable working environment includes the psychosocial work environment, covering issues such as bullying, harassment, excessive workload and isolation. The amendment is intended to raise awareness and provide clearer legal grounds for enforcement by the Labour Inspection Authority, which was itself given expanded powers (including on-site administrative fines and court-ordered evidence-securing) from July 2025. What to do: Norwegian employers should review retirement policies and remove any company-specific age limits below 72. On the psychosocial front, update risk assessments and internal procedures to document how you identify and address psychosocial hazards, as the Labour Inspection Authority now has sharper tools to enforce these obligations.
On the radar
UK electronic union balloting (previously covered): Takes effect 25 August 2026, permitting electronic and in-person voting in trade union ballots where the employer and union agree.
UK zero-hours contracts consultation (previously covered): Closes 25 August 2026.
Spain flexible retirement (previously covered): Royal Decree 416/2026 takes effect 28 August 2026.
Netherlands Staatsblad publication deadline (previously covered): The legal presumption of employment act must be published by 31 August 2026 for the planned 1 January 2027 commencement to hold.
Ireland My Future Fund opt-out (previously covered): Window closes at the end of August 2026.
Germany working time bill: Coalition negotiations ongoing; a formal draft is expected in the autumn parliamentary session.
EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026.
Sources
- DLA Piper: Finland reforms the Employment Contracts Act
- Borenius: New changes to the Finnish employment legislation entered into force
- Borenius: Finland lowers termination threshold for person-related grounds
- Finnish Government: Legislative changes to make fixed-term employment contracts more flexible
- DLA Piper: Germany prepares shift to weekly working time limits
- Addleshaw Goddard: Germany’s working time reform, draft bill expected in June 2026
- DataGuidance: Belgian DPA fines SWDE €86,000 for GDPR violations in call recording practices
- L&E Global: Norway 2026, looking ahead
- Aider Legal: The Labour Inspection Authority gets new and stricter enforcement tools
Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.
