26.2.2020

Coronavirus Epidemic: FAQ for Finnish Employers

The coronavirus (COVID-19) that originated in China has become an epidemic that countries are attempting to contain by restricting movement. The situation raises a number of questions at workplaces. What happens if employees are quarantined abroad? Can companies lay off or terminate employees if the epidemic harms their business? We answer some frequently asked questions below.

You might also be interested in:  Coronavirus – Secure Your Business-Critical Issues.

Absence from Work Permitted, but Not Necessarily Paid

If an employee misses work, for example, due to a cancelled flight, quarantine or other mandatory reason relating to the epidemic, the absence is permissible, and employment law sanctions cannot be imposed on the employee due to it.

However, even when there is an acceptable reason for it, the absence is not necessarily paid. Employers are not legally obligated to pay wages or salary for the duration of an absence that is due to a quarantine or isolation imposed by the authorities unless the employee themself is sick.

Though employers are not obligated to pay, some employers have continued to pay their employees if they have been caught by a quarantine while on a business trip. If Kela grants the employee an infectious disease allowance due to a quarantine, the allowance will be paid to the employer to the extent the employer has paid the employee during the absence. The allowance covers the full loss of income and has no deductible period.

Annual Holiday Accrues During Quarantine

From the perspective of the accrual of annual holiday, a quarantine imposed by the authorities is equated to being at work, and employees earn holiday normally for the duration of the quarantine. The same rule applies if an employee is placed in isolation, for example, due to a family member having fallen ill.

Layoffs Require Cooperation Negotiations

Some companies have been forced to consider layoffs and other cost-saving measures due to the disruptions the epidemic has caused to their business. However, an epidemic is not considered a particularly weighty and unforeseeable event that would allow employers to take action without cooperation negotiations. It is important for companies to remember to start cooperation procedures as soon as they begin planning measures that could lead to layoffs or terminations.

Update Your Company’s Instructions

Employers should provide their employees instructions on what to do if they fall ill. For example, the Confederation of Finnish Industries (EK) recommends that employees should be allowed to take a sick leave of a few days without a doctor’s certificate during the epidemic.

The Occupational Safety and Health Act obligates employers to ensure the safety of employees even when on overseas business trips. Employers need to keep an eye on authority instructions and travel restrictions and update their workplace instructions as needed. It is worth making sure whether your company’s travel insurance covers additional costs caused by the coronavirus. Employees going on business trips should be given detailed instructions on what to do if they believe they have been infected during the trip or after returning home.

It is also a good idea to review your remote working practices and consider how to arrange work if the epidemic were to lead to a widespread quarantine in Finland.

Latest references

We advised Suominen Corporation in connection with its rights issue. The offering was oversubscribed, and the company raised gross proceeds of approximately EUR 28 million. We also advised Suominen in connection with the renegotiation of the terms of the company’s three-year EUR 100 million syndicated credit facility, under which the maturity was extended and headroom was added to the financial covenants. “I would like to thank our shareholders for their support and confidence in Suominen’s future. The completion of the Offering will enable us to accelerate the implementation of our Full Potential Program while strengthening our capital structure. Our transformation particularly focuses on enhancing the reliability and efficiency of our production and supply, and on reinforcing our commercial capabilities, allowing us to better meet the expectations of our customers and shareholders”, comments Charles Héaulmé, President and CEO of Suominen. Suominen is a nonwovens manufacturer operating in global markets. Suominen creates value by taking fiber raw materials and turning them into nonwovens that the company’s customers convert into both consumer and professional end products. Suominen’s vision is to be the frontrunner for nonwovens innovation and sustainability. Suominen’s net sales in 2025 were EUR 412.4 million and the company has almost 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki.
Case published 6.7.2026
We acted as joint legal advisor for Nordea Bank Abp and Avain Yhtiöt in an approximately EUR 48 million financing arrangement which included facilities for refinancing of an existing real estate portfolio and also for acquisition and property development purposes. The financing arrangement strengthens Avain Yhtiöt’s objective to build and maintain a functional, safe and environmentally friendly living environment, as well as to develop the overall quality of housing and construction. Avain Yhtiöt is a Finnish group specialising in housing and housing-related services, construction contracting and new construction. Its goal is to build 1,000 new apartments per year in key growth areas in Finland.
Case published 2.7.2026
We advised the shareholders of Suomen Autohuolto Oy in connection with the sale of the company’s entire share capital, to SAKA Finland Group Oy. Suomen Autohuolto Group is one of Finland’s largest companies specializing in brand-specific automotive maintenance and has locations in Oulu, Tampere, and from July, also in Järvenpää. The transaction is subject to final approval by the Finnish Competition and Consumer Authority (KKV).
Case published 26.6.2026
AI training
We delivered two tailor-made AI workshops for the lawyers at the Natural Resources Institute Finland (Luke). We discussed the AI revolution and its impact on lawyers’ ways of thinking and working, and left the participants with practical solutions for enhancing and streamlining their work with Legora. Our AI-specialist lawyers prepared use cases tailored to Luke and the needs of public administration, which Luke received for its own use following the workshops. These use cases covered topics such as: utilising legal sources and the organisation’s own data to maximise AI results building and leveraging AI workflows AI-enhanced contract drafting based on a large volume of documents. The workshops sparked wide-ranging discussion on the role and benefits of AI in legal work. Participants appreciated how clearly and comprehensively our experts were able to present the nature and benefits of AI specifically within a legal context. ‘The workshops provided excellent support for Luke’s goal of leveraging AI responsibly and gave us concrete and ready-to-use practical takeaways,’ says Hannu Laitinen, Luke’s Senior Vice President, Administrative Affairs.
Case published 26.6.2026