The codetermination procedure and other personnel involvement systems

Codetermination in companies

The purpose of codetermination is to improve company practices and working conditions. Codetermination includes listening to staff and keeping them informed. Listening to employees is a way to increase their potential for involvement. Codetermination in companies is regulated under the Act on Cooperation within Undertakings.

Personnel representation in company administration

The Act on Personnel Representation in the Administration of Undertakings gives staff the right to participate in the handling of matters relating to company business and the position of staff. Properly organised personnel representation promotes a flow of information between staff, management and the owners of the company. Staff expertise can thus be effectively exploited when decisions are being taken about the company. The purpose of personnel representation is also to ensure that the company remains competitive.

Personnel representation in European companies and European Cooperative Societies

The European company and the European cooperative society are new forms of company which make it possible to engage in business throughout the European Union in the same company’s name. The Act on Employee Involvement in European Companies (SE) and Cooperative Societies (SCE) has been the means utilised in Finland to implement EU directives on adding the subject of personnel representation to the rules on European companies and cooperative societies. Personnel representation means a system where staff representatives can have an influence on company decisions.

Staff fund

A staff fund is a fund owned and managed by the staff of a company, agency or government department, whose purpose it is to manage profit-share monies paid into it by the company, agency or government department in question and any other funds pursuant to the Act on Personnel Funds. The members of a staff fund are the entire staff, with the exception of senior management. Staff fund practices are regulated under the Act on Personnel Funds.

Act on Cooperation Ombudsman (pdf) (12.6 KB)

The new Act on Co-operation within Undertakings, brochure text, 2007A new act on Co-operation within Undertakings - Evaluation Research on the Effects of the new Co-operation Act, 2010 (summary)