Employee representation in company administration

The aim of employee representation in company administration is both to improve the efficiency of the company’s operations and to increase the employees’ opportunities to exert influence.

The personnel have the right to participate in the decision-making of a company employing at least 150 employees in the bodies that have the company’s decision-making power, executive power or the operational supervision right related to them.

The personnel may be represented on, for example, a limited liability company’s Board of Directors, Supervisory Board or in advisory executive teams established for the preparations for the decision-making of the Board of Directors and the executive management, in which the decisions on practical operations are actually made.

Provisions on employee representation in company administration cannot be circumvented by establishing new bodies, the purpose of which is only to formally meet legal requirements.

Representation includes the opportunity to participate in discussing important issues related to the company’s business operations, finances and the personnel’s position already before decision-making.

The purpose is that the company and the personnel could flexibly agree on operating models that are best suited for the company’s structure and operating method. Indeed, employee representation in company administration should primarily be organised with an agreement between the company and the personnel.

The Co-operation Ombudsman may grant permission, upon application, to deviate from the implementation method of employee representation in company administration.