More Regulation for Employers from the EU – Is the Idea of Competitiveness Fading?
The European Union is currently working on numerous legislative initiatives related to employment. The underlying theme of these initiatives is to strengthen the position of employees while increasing employer obligations.
I am quite sceptical that adding more regulatory burden and employer responsibilities will encourage companies to invest and hire more within the EU. It is essential to safeguard employees' rights, but the goal of competitiveness, which the Commission itself has emphasised as crucial, should also be reflected in employment legislation.
At present, the increasing obligations do not exactly reinforce the perception that the EU aspires to be a global economic driver. However, the forest industry remains committed to ensuring that our sector’s employers have their voices heard in legislative preparations at both the EU and national levels.
So, what employment-related legislative initiatives are currently on the table in Brussels?
Increasing Employer Obligations for EWC Companies
Trilogue negotiations on the proposed revision of the European Works Council (EWC) Directive will begin at the outset of the new EU Parliament's term. It appears that changes to the directive will have implications for national legislation as well.
One of the most significant proposed changes is the expansion of the directive's scope by redefining the criteria for transnational matters. There is also an intention to increase corporate financial responsibility both within EWC operations and potentially in EWC-related disputes. Additionally, companies are expected to be given broader obligations to respond to questions from employee representatives. Moreover, the possibility of employees seeking an injunction to delay company decisions until proper information and consultation procedures are completed is still on the table.
Internships Under Scrutiny
The European Commission has proposed a directive aimed at improving working conditions for interns to prevent regular employment being disguised as internships and to revise the quality framework recommendations for internships. This issue is now moving to discussions within the European Parliament and member states.
Key aspects of the proposal include the introduction of a non-discrimination principle, ensuring that interns are treated equally with other employees of the same employer unless there is a justified reason for differential treatment. Increased monitoring and inspections to prevent potential abuses of internships are also being proposed.
New Rules on Employee Availability
Talks between social partners on remote work and the right of employees to disconnect outside working hours ended without agreement at the end of 2023. As a result, the matter has moved to the standard EU legislative process, with the first consultation of social partners held in 2024.
A Commission initiative and a second round of consultations are expected this year. Topics likely to remain on the table include occupational safety issues related to remote work, compensation for work equipment, and potentially even a defined right for employees to work remotely. Regarding the right to disconnect outside working hours, an interesting question is whether there will also be a ban on employers attempting to contact employees.
Considering Domestic Industry Competitiveness in National Implementation
In Finland, the coming year will also bring several employment-related topics to national implementation, such as the Platform Work Directive and the Pay Transparency Directive, currently under review by a Ministry of Social Affairs and Health working group, which will conclude its work by the end of March. The Ministry of Economic Affairs and Employment will lead the Finnish implementation of the Platform Work Directive, which must be completed by 2 December 2026.
The EU Artificial Intelligence Act, which came into force last summer, has also entered the national implementation phase. The regulation will be implemented in stages, with full enforcement required within two years of its adoption. Additional obligations are expected, particularly in the use of AI in recruitment processes.
Finally, the national implementation of the ongoing Corporate Sustainability Due Diligence Directive (CSDDD), in which I am personally involved, must be completed by summer 2026. Our aim is to promote precise and well-defined legislation that is easy for businesses to comply with. It is also important to carefully assess which areas covered by the directive are already addressed by existing legislation. In all national implementation efforts, it is crucial to consider our domestic competitiveness and avoid undermining it through national decisions.