Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2022 Global Guide Quarterly

Rules Concerning the Noncompetition Agreement Are Not Applicable to a Confidentiality Clause

Precedential Decision by Judiciary or Regulatory Agency

Authors: Samuel Kääriäinen, Partner and Head of Employment, and Emma Mäkeläinen, Associate – Dottir Attorneys Ltd

On March 15, 2022, the Supreme Court ruled that the employer and employee can competently agree on post-termination noncompete and confidentiality obligations as well as that the rules concerning noncompetition agreement are not applicable to the confidentiality obligation. In this case, the employee had after the termination of employment started a competing real estate business as well as utilized client information which was considered trade secrets of the employer. The Supreme Court stated that both noncompete and confidentiality obligations may be based on the need to protect the trade secrets of the employer, but the confidentiality obligation does not, in principle, prevent the employee’s right to practice their profession.

The Supreme Court ruled in favor of the employer that confidentiality obligation should not be equated to noncompetition agreement and the said clause did not restrict the employee’s possibility to practice their profession beyond what is acceptable of the protection of trade secrets. The employee had breached both confidentiality and noncompete obligations and was obliged to pay an amount equaling six months’ salary as liquidated damages for each breach.

Collective Agreement Based on Geographical Restriction Cannot Be Applied When Assessing Reduction of Work

Precedential Decision by Judiciary or Regulatory Agency

Authors: Samuel Kääriäinen, Partner and Head of Employment, and Emma Mäkeläinen, Associate – Dottir Attorneys Ltd

On March 16, 2022, the Supreme Court ruled on a case relating to employer’s possibility to apply a collective agreement based on geographical restriction of the redeployment obligation when assessing whether the work had diminished substantially and permanently. In accordance with the Finnish Employment Contracts Act, the employer is obliged to offer other work to the employee during their notice period, without any geographical restrictions, to avoid the termination. However, this provision can be deviated from with a national collective agreement.

In this case, the applicable collective agreement included a provision according to which the employer’s redeployment obligation was restricted to a geographical area in which the employee could commute on a daily basis from their home. The employer had assessed the reduction of work only in the restricted geographical area. After terminating the employment, the employer had recruited several employees to the similar duties in which the employee had worked but to different locations. The Supreme Court ruled in favor of the employee that the employer was obliged to assess the reduction of work nationwide and thus, the employer was obliged to pay compensation for an unlawful termination.

Proposed Amendments to the Employer’s Right to Collect Employees’ Personal Data

Proposed Bill or Initiative

Authors: Samuel Kääriäinen, Partner and Head of Employment, and Emma Mäkeläinen, Associate – Dottir Attorneys Ltd

On March 24, 2022, the Finnish government proposed amendments to the Finnish Act on the Protection of Privacy in Working Life relating to the employer’s right to collect personal data of its employees. The aim is to clarify the regulation in relation to the General Data Protection Regulation (EU) and practices in work. The collection of employee’s personal data from a third party is generally subject to the employee’s consent.

In the future, the consent would not be required when the collection of personal data is based on the implementation of employer’s statutory rights and obligations. However, the consent still needs to be obtained when personal data is collected from third parties for recruitment. The amendment would not affect the obligation to process only personal data necessary for the employment.

Employer’s Right to Process Personal Data Concerning Employees’ COVID-19 Vaccination Status or Recovered COVID-19 Disease

Proposed Bill or Initiative

Authors: Samuel Kääriäinen, Partner and Head of Employment, and Emma Mäkeläinen, Associate – Dottir Attorneys Ltd

A working group has assessed safety aspects relating to COVID-19 within working environment and proposed amendments to the Occupational Safety and Health Act. In accordance with the draft proposal, the employer would be entitled to process personal data relating to employees’ vaccination status or recovered disease.

If approved, the processing of COVID-19 related personal data would be legitimate provided that there is an obvious risk of being exposed to COVID-19 at work and the processing is necessary for conducting a risk assessment and/or implementing necessary measures to diminish and prevent the risk of exposure. Upon request, the employee should provide the employer with a reliable statement of that information.