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 acted as legal adviser to Banyan Software on its acquisition of Carus Ferry, a Finland-based provider of reservation, check-in and port operations software for ferry and passenger shipping operators. The acquisition further strengthens Banyan Software’s presence in the Nordic region while providing Carus with a long-term partner to support its continued growth and development. Carus was founded in 1998 and is headquartered in Mariehamn on the Åland Islands, Finland. The company develops mission-critical software for ferry, cruise and passenger shipping operators, covering the full passenger journey from booking and ticketing to capacity management, check-in and boarding. Carus also provides port automation, onboard sales systems and business information tools. The company serves approximately 30 operators across four continents and is the largest vendor by customer count in ferry reservation and departure control. Banyan Software is an acquirer and long-term operator of mission-critical software businesses serving specialised industries. Founded in 2016, Banyan follows a buy-and-hold-for-life approach and supports the long-term growth and development of its portfolio companies. Banyan operates more than 130 portfolio companies across North and South America, the United Kingdom, Europe and APAC. Following the acquisition of Carus, Banyan operates three businesses in the Nordic region.
Case published 20.10.2026
We successfully represented a Finnish construction management consultancy and a safety coordinator employed by the company in criminal proceedings concerning an alleged occupational safety and health offence. The prosecutor sought a penalty for an alleged breach of occupational safety regulations. The charge arose from a fall accident at a construction site where our client acted as the safety coordinator appointed by the developer. We assessed the scope of the safety coordinator’s duties in relation to the responsibilities of the main contractor, as well as how our client had fulfilled their obligations in practice. We demonstrated that our client had acted with due care and in full compliance with their duties throughout the planning, preparation and execution of the construction project. The District Court of Eastern Uusimaa dismissed the charge against our client. The Court held that our client, in their capacity as safety coordinator, had duly fulfilled the occupational safety obligations incumbent on the developer during the planning and preparation phases of the construction project and had not been aware of the fall protection deficiency identified at the site. The judgment is final insofar as our client is concerned.
Case published 22.6.2026
We advised G&W Electric with its acquisition of Safegrid Oy, a leading provider of intelligent grid monitoring solutions based in Finland. The acquisition accelerates G&W Electric’s long-term strategy to integrate intelligent monitoring and predictive analytics into its power distribution portfolio, strengthening its offering to utility customers worldwide. Founded in 1905 and headquartered in Bolingbrook, Illinois, G&W Electric is a global leader in innovative power grid solutions, with a presence in over 100 countries. The company is known for advanced load and fault interrupting switches, reclosers, sensors, system protection equipment, power grid automation, intelligent grid monitoring, and transmission and distribution cable accessories. Safegrid is a Finnish technology company headquartered in Espoo, Finland. The company develops the Intelligent Grid System®, a grid monitoring solution that combines instant-on wireless sensors with advanced analytics to deliver real-time insight into grid conditions, enabling utilities to identify emerging issues, anticipate failures, and reduce outage duration across medium and high voltage distribution and transmission networks.
Case published 8.5.2026
We advised Aurevia Oy, a portfolio company of French private equity sponsor Mérieux Equity Partners, in a strategic reorganisation that involved splitting Aurevia and its parent companies into two independent groups of companies and reorganisation of its existing debt-financing arrangements. Following the reorganisation, the newly formed Aurevia continues as a leading provider of Contract Research Organization (CRO) and Quality Assurance and Regulatory Affairs (QARA) services, while the newly formed Labquality focuses on delivering External Quality Assessment (EQA) services. Aurevia serves operators in the medical devices, in vitro diagnostics and pharmaceutical sectors. Labquality’s customers include clinical laboratories and social and healthcare organisations. The reorganisation positions Aurevia and Labquality to allocate investments more effectively, accelerate growth within their respective customer segments, and respond to evolving market and client needs. The transaction was implemented through multiple parallel demergers and required comprehensive legal and tax structuring across several jurisdictions. Our team supported Aurevia throughout the planning and implementation phases, covering corporate, tax, employment law, and regulatory matters, as well as the optimisation of each group’s financing structure.
Case published 7.4.2026