FINLAND Trends and Developments Contributed by: Anu Waaralinna, Jukka Paloheimo, Oskari Lindholm and Elmiira Kutvonen, Roschier
Navigating Internal HR Investigations in Finland: A Practical Guide for Employers Introduction Finnish companies’ approach to corporate investi - gations has evolved significantly, with allegations of misconduct emerging through whistle-blower reports, internal audits, law enforcement or regulatory investi - gations, media coverage and statutory auditor reports. However, Finland lacks a dedicated anti-corruption investigative agency. For companies operating in Fin - land, it has also become increasingly critical to under - stand how to conduct HR investigations effectively while navigating the country’s stringent data protec - tion and employment laws. To the firm’s knowledge, and in its experience, the number of internal investigations carried out in com - panies has increased significantly, even though no official statistics are available. This is mainly due to the highly confidential nature of these investigations and the fact that there are no traces of such proceed - ings in official records. Finland maintains a comprehensive data protection framework under the EU General Data Protection Regulation (GDPR). This framework is supplemented by the Finnish Data Protection Act and the Act on the Protection of Privacy in Working Life. These laws establish stringent requirements, including the neces - sity principle, which mandates that employers collect only essential personal data. Finnish regulation also restricts employee monitoring, surveillance, testing and assessments. These regulations create a com - plex landscape for employers seeking to investigate potential employee misconduct. There are no significant legislative changes concern - ing criminal aspects of employee behaviour, such as breach and/or misuse of business secrets. In addition, an increasing number of investigations are linked to harassment and other inappropriate behaviour despite the fact that the law does not provide exact definition of “harassment”, “bullying” or even “inappropriate behaviour” as such. This article examines the key issues companies face when conducting HR investigations in Finland, focus -
ing on practical considerations for employers navigat - ing this challenging regulatory environment. The evolving framework for internal investigations Mandatory whistle-blowing infrastructure The Finnish Act on the Protection of Persons Report - ing Violations of European Union and National Law (the “Finnish WB Act”), implementing the EU Whistle - blowing Directive, requires all employers with at least 50 employees to establish an internal whistle-blowing channel. The types of issues that may be addressed through the whistle-blowing channel are defined by law. All HR-related matters, such as workplace har - assment claims, are excluded from the Finnish WB Act. An organisation must appoint a person or persons responsible for handling whistle-blowing reports and ensure that they can perform their duties impartially and independently – and may choose whether to allow anonymous reports. The identity of the whistle-blower and any third party mentioned in the report will, as a rule, remain confidential, with any form of retalia - tory action being strictly prohibited, including altering employment terms unfavourably, terminating employ - ment, initiating unpaid leave or treating the person adversely in any other way as a result of the report. In some cases, corporations are obliged to conduct an internal investigation, for example in relation to whistle-blower reports under the Finnish WB Act or in relation to anti-money laundering legislation. This creates a dual obligation: not only must companies establish proper reporting channels, but they must also investigate reports received through these chan - nels promptly and thoroughly. As mentioned previously, HR-related matters and thus HR investigations fall outside the scope of the Finnish WB Act. Legal basis for the obligation to carry out investigations relating to harassment, bullying or other inappropriate behaviour A significant number of HR investigations continue to relate to alleged bullying, harassment or other inap - propriate behaviour in the workplace. Although Finn - ish law does not define “harassment”, “bullying” or
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