Chinese courts have ruled that AI adoption alone does not justify dismissing workers. Finnish employers have far broader discretion — but the legal risk emerges earlier than many boards realize.

When a Hangzhou tech company tried to replace its AI quality-assurance supervisor with a large language model — offering him a 40% pay cut to a different role, then firing him when he refused — China's courts ruled the dismissal illegal. The Hangzhou Intermediate People's Court decision, published in late April as part of a set of typical AI-related labor cases, established a principle now drawing international attention: AI adoption alone does not justify firing workers.

Finnish employers operate under very different rules, but the underlying question Chinese courts raised is one Finnish boards will face soon, if they aren't facing it already: at what point does deploying AI shift from being a productivity-driven investment to a decision that results in a reduction of the workforce?

"There is no black and white answer to that," says Sanna Honkinen, head of employment practice at Hannes Snellman. And that ambiguity, she warns, is where the legal risk lives.

The Chinese precedent

The Hangzhou ruling, upheld on appeal on April 28, centered on a quality assurance supervisor identified only as Zhou. Hired in 2022 at a monthly salary of 25,000 yuan (USD3,676) to oversee his employer's AI output, Zhou was told in 2025 that the company intended to replace his role with a large language model. He was offered a different position at 15,000 yuan — a 40% pay cut — and dismissed when he refused.

The Intermediate People's Court ruled that AI-driven job replacement does not constitute a "major change in objective circumstances" under China's Labor Contract Law, the legal threshold normally required to justify redundancy-based termination. The court also found the reassignment offer unreasonable on its own terms. The ruling built on a December 2024 Beijing arbitration decision involving a map data worker dismissed after AI took over his role, reaching the same conclusion: adopting AI is a business choice, not an unforeseen event, and its costs cannot be shifted unilaterally onto employees.

The cases have drawn international legal attention because they cut against the assumption — common in at-will jurisdictions like the United States — that AI-driven restructuring is a straightforward business decision. Finland's framework sits between these poles.

The Finnish legal reality

Finnish employers have considerably more discretion than their Chinese counterparts to restructure around AI.

"In Finland, the employer has the right to decide what business activities are operated and how business and roles within the company are organized," Honkinen says.

Roles can be terminated for financial, production-related, or reorganization reasons linked to technological development, including AI adoption, provided the amount of work has genuinely declined. But that discretion comes with procedural strings attached.

Under Finland's Co-operation Act, employers with at least 50 employees must begin change negotiations if planned measures could materially affect employees' work tasks, working methods, working hours, or lead to layoffs or dismissals on financial or production-related grounds. Employers with 20 to 49 employees face similar obligations in cases involving broader personnel reductions.

Employers must also assess whether employees can be reassigned or retrained before dismissals take place. "The employer has to consider whether the employee can be placed into another role or trained for another role," Honkinen says.

That retraining obligation is narrower than it sounds. Companies do not have to educate employees into entirely new professions — the expectation is shorter-term training into adjacent roles where employees already possess the core capabilities needed.

The timing trap

The harder question for Finnish boards is not whether they can reduce roles, but when AI adoption becomes serious enough to trigger the formal negotiation process.

That is Honkinen's central warning. Companies that drift from AI experimentation into operational deployment without recognizing the transition can find themselves on the wrong side of the procedural line.

"At what point does the company have sufficient information on the estimated impacts on employees?" she says. There is no clean answer in the statute — and the timing matters, because employers cannot make business decisions that directly result in headcount reductions before change negotiations have been completed. 

At the same time, change negotiations cannot be held on a “just in case” basis without a concrete plan and an assessment of workforce impacts. "That is something that needs to be remembered," Honkinen says.

As understanding of AI’s concrete impact on business operations grows, it becomes increasingly likely that we will see more change negotiations carried out already at the stage when new AI investments are being considered, she adds.

The Chinese rulings flagged a structurally similar issue from the opposite direction. Courts there argued that if AI restructuring becomes necessary, employers should first prioritize retraining workers, offer reasonable reassignment terms, and provide support measures before moving to dismissals. Two very different legal systems have landed on overlapping employer obligations.

The transition is already underway

A 2025 survey commissioned by OP Financial Group found that 38% of large Finnish companies had already replaced some work tasks with AI, while more than half said they planned to do so in the future. The same survey found that 84% of companies had trained employees to use AI tools.

An IMF paper published earlier this year estimated that around one-fifth of Finland's workforce faces a risk of AI-related job displacement, particularly in software development, finance, and administrative work — even as Finland remains among the countries best positioned to benefit from AI adoption overall.

Honkinen says the largest impact is likely to fall on knowledge-work sectors where companies can automate parts of expert workflows without removing the need for human oversight. She pointed particularly to junior roles, including in the legal sector itself, where AI can increasingly automate repetitive tasks previously handled by entry-level employees.

"The most junior roles are, of course, roles where there might be the most impact," Honkinen says. But she argued the issue is more complicated than simply reducing headcount. "You can't really have senior employees in the future without first having junior employees."

That tension is likely to become more visible across Nordic companies as AI takes over portions of administrative, analytical, and documentation-heavy work that traditionally formed the training ground for younger professionals.

Rather than eliminating entire professions, Honkinen says many companies are likely to redesign workflows and redistribute responsibilities. "It's more a matter of changes in the scope of work. New skills and new tasks might be introduced."

Most companies are still approaching AI cautiously rather than aggressively replacing workers. "At the moment, the general assumption is that individuals are still needed to verify the results of AI," she says.

What boards should actually ask

Honkinen says boards should focus less on immediate labor savings and more on whether management has a credible long-term workforce strategy.

"What they should ask from management is whether there is systematic development of employee skills and capabilities taking place in the company," she says.

She describes the current moment as a "strategic transformation of working life," where companies need clearer plans for training employees, introducing AI tools, and adapting organizational structures over time.

In practical terms, that points to several questions Finnish boards and management teams should be working through now:

  • Is there a documented workforce skills plan tied to the AI roadmap, not just a cost-savings case?

  • At what threshold does a pilot become a deployment that triggers change negotiation obligations — and who inside the company is responsible for flagging that line?

  • Are AI usage policies in place before deployment scales, including rules on what data employees can share with external tools and how confidential information is handled?

  • Are change-negotiation timelines built into AI rollout plans, rather than treated as an afterthought once decisions have effectively been made?

"In many companies, there is a growing need for new policies and new instructions to employees as to how to use AI," Honkinen says.

Despite the pace of technological change, she does not see a strong need for entirely new labor legislation in Finland. "The thing with law is that when we have technological innovation, it might be difficult to have a legal framework that is always able to follow the technological innovations."

The larger challenge for Finnish employers, she suggests, is operational rather than legislative. Companies need to decide when AI adoption stops being a technology experiment and becomes a workforce restructuring process — and act before the law makes that decision for them. At the same time, they need to ensure employees are systematically trained to use AI effectively and responsibly.

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Leaders

Labor law expert Sanna Honkinen: Finnish companies face an AI restructuring question that the law hasn't fully answered

Labor law expert Sanna Honkinen: Finnish companies face an AI restructuring question that the law hasn't fully answered

·

5 min read

Credit: Hannes Snellman, Sanna Honkinen

Credit: Hannes Snellman, Sanna Honkinen

Chinese courts have ruled that AI adoption alone does not justify dismissing workers. Finnish employers have far broader discretion — but the legal risk emerges earlier than many boards realize.

When a Hangzhou tech company tried to replace its AI quality-assurance supervisor with a large language model — offering him a 40% pay cut to a different role, then firing him when he refused — China's courts ruled the dismissal illegal. The Hangzhou Intermediate People's Court decision, published in late April as part of a set of typical AI-related labor cases, established a principle now drawing international attention: AI adoption alone does not justify firing workers.

Finnish employers operate under very different rules, but the underlying question Chinese courts raised is one Finnish boards will face soon, if they aren't facing it already: at what point does deploying AI shift from being a productivity-driven investment to a decision that results in a reduction of the workforce?

"There is no black and white answer to that," says Sanna Honkinen, head of employment practice at Hannes Snellman. And that ambiguity, she warns, is where the legal risk lives.

The Chinese precedent

The Hangzhou ruling, upheld on appeal on April 28, centered on a quality assurance supervisor identified only as Zhou. Hired in 2022 at a monthly salary of 25,000 yuan (USD3,676) to oversee his employer's AI output, Zhou was told in 2025 that the company intended to replace his role with a large language model. He was offered a different position at 15,000 yuan — a 40% pay cut — and dismissed when he refused.

The Intermediate People's Court ruled that AI-driven job replacement does not constitute a "major change in objective circumstances" under China's Labor Contract Law, the legal threshold normally required to justify redundancy-based termination. The court also found the reassignment offer unreasonable on its own terms. The ruling built on a December 2024 Beijing arbitration decision involving a map data worker dismissed after AI took over his role, reaching the same conclusion: adopting AI is a business choice, not an unforeseen event, and its costs cannot be shifted unilaterally onto employees.

The cases have drawn international legal attention because they cut against the assumption — common in at-will jurisdictions like the United States — that AI-driven restructuring is a straightforward business decision. Finland's framework sits between these poles.

The Finnish legal reality

Finnish employers have considerably more discretion than their Chinese counterparts to restructure around AI.

"In Finland, the employer has the right to decide what business activities are operated and how business and roles within the company are organized," Honkinen says.

Roles can be terminated for financial, production-related, or reorganization reasons linked to technological development, including AI adoption, provided the amount of work has genuinely declined. But that discretion comes with procedural strings attached.

Under Finland's Co-operation Act, employers with at least 50 employees must begin change negotiations if planned measures could materially affect employees' work tasks, working methods, working hours, or lead to layoffs or dismissals on financial or production-related grounds. Employers with 20 to 49 employees face similar obligations in cases involving broader personnel reductions.

Employers must also assess whether employees can be reassigned or retrained before dismissals take place. "The employer has to consider whether the employee can be placed into another role or trained for another role," Honkinen says.

That retraining obligation is narrower than it sounds. Companies do not have to educate employees into entirely new professions — the expectation is shorter-term training into adjacent roles where employees already possess the core capabilities needed.

The timing trap

The harder question for Finnish boards is not whether they can reduce roles, but when AI adoption becomes serious enough to trigger the formal negotiation process.

That is Honkinen's central warning. Companies that drift from AI experimentation into operational deployment without recognizing the transition can find themselves on the wrong side of the procedural line.

"At what point does the company have sufficient information on the estimated impacts on employees?" she says. There is no clean answer in the statute — and the timing matters, because employers cannot make business decisions that directly result in headcount reductions before change negotiations have been completed. 

At the same time, change negotiations cannot be held on a “just in case” basis without a concrete plan and an assessment of workforce impacts. "That is something that needs to be remembered," Honkinen says.

As understanding of AI’s concrete impact on business operations grows, it becomes increasingly likely that we will see more change negotiations carried out already at the stage when new AI investments are being considered, she adds.

The Chinese rulings flagged a structurally similar issue from the opposite direction. Courts there argued that if AI restructuring becomes necessary, employers should first prioritize retraining workers, offer reasonable reassignment terms, and provide support measures before moving to dismissals. Two very different legal systems have landed on overlapping employer obligations.

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The month’s most important stories, leadership insights, and benchmarks across Nordic business, starting from Finland, curated so you never miss what truly matters.

Delivered monthly.

By signing up, you agree to our Privacy Policy

The transition is already underway

A 2025 survey commissioned by OP Financial Group found that 38% of large Finnish companies had already replaced some work tasks with AI, while more than half said they planned to do so in the future. The same survey found that 84% of companies had trained employees to use AI tools.

An IMF paper published earlier this year estimated that around one-fifth of Finland's workforce faces a risk of AI-related job displacement, particularly in software development, finance, and administrative work — even as Finland remains among the countries best positioned to benefit from AI adoption overall.

Honkinen says the largest impact is likely to fall on knowledge-work sectors where companies can automate parts of expert workflows without removing the need for human oversight. She pointed particularly to junior roles, including in the legal sector itself, where AI can increasingly automate repetitive tasks previously handled by entry-level employees.

"The most junior roles are, of course, roles where there might be the most impact," Honkinen says. But she argued the issue is more complicated than simply reducing headcount. "You can't really have senior employees in the future without first having junior employees."

That tension is likely to become more visible across Nordic companies as AI takes over portions of administrative, analytical, and documentation-heavy work that traditionally formed the training ground for younger professionals.

Rather than eliminating entire professions, Honkinen says many companies are likely to redesign workflows and redistribute responsibilities. "It's more a matter of changes in the scope of work. New skills and new tasks might be introduced."

Most companies are still approaching AI cautiously rather than aggressively replacing workers. "At the moment, the general assumption is that individuals are still needed to verify the results of AI," she says.

What boards should actually ask

Honkinen says boards should focus less on immediate labor savings and more on whether management has a credible long-term workforce strategy.

"What they should ask from management is whether there is systematic development of employee skills and capabilities taking place in the company," she says.

She describes the current moment as a "strategic transformation of working life," where companies need clearer plans for training employees, introducing AI tools, and adapting organizational structures over time.

In practical terms, that points to several questions Finnish boards and management teams should be working through now:

  • Is there a documented workforce skills plan tied to the AI roadmap, not just a cost-savings case?

  • At what threshold does a pilot become a deployment that triggers change negotiation obligations — and who inside the company is responsible for flagging that line?

  • Are AI usage policies in place before deployment scales, including rules on what data employees can share with external tools and how confidential information is handled?

  • Are change-negotiation timelines built into AI rollout plans, rather than treated as an afterthought once decisions have effectively been made?

"In many companies, there is a growing need for new policies and new instructions to employees as to how to use AI," Honkinen says.

Despite the pace of technological change, she does not see a strong need for entirely new labor legislation in Finland. "The thing with law is that when we have technological innovation, it might be difficult to have a legal framework that is always able to follow the technological innovations."

The larger challenge for Finnish employers, she suggests, is operational rather than legislative. Companies need to decide when AI adoption stops being a technology experiment and becomes a workforce restructuring process — and act before the law makes that decision for them. At the same time, they need to ensure employees are systematically trained to use AI effectively and responsibly.

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Topics

# Topics

Authors

Emmi Laine is head of business content at Listeds and our lead for finance and business coverage. She sets the editorial agenda, interviews Nordic business leaders, and writes stories, newsletters, and social content on timely market and corporate topics. Emmi brings nearly eight years of experience from Shanghai's Yicai Global / Yicai Media Group, where she was awarded for reporting on China’s economy, finance sector, and technology innovation. She holds an MSc in Innovation and Entrepreneurship from ESADE Business School in Barcelona and a Master’s degree in International Design Business Management from Aalto University. She also holds a Bachelor’s degree in Culture Studies with a major in Journalism from Stockholm University and has studied Mandarin Chinese and Chinese culture. Emmi is a Finnish citizen and has lived in Finland, Sweden, China, and Portugal.

Emmi Laine is head of business content at Listeds and our lead for finance and business coverage. She sets the editorial agenda, interviews Nordic business leaders, and writes stories, newsletters, and social content on timely market and corporate topics. Emmi brings nearly eight years of experience from Shanghai's Yicai Global / Yicai Media Group, where she was awarded for reporting on China’s economy, finance sector, and technology innovation. She holds an MSc in Innovation and Entrepreneurship from ESADE Business School in Barcelona and a Master’s degree in International Design Business Management from Aalto University. She also holds a Bachelor’s degree in Culture Studies with a major in Journalism from Stockholm University and has studied Mandarin Chinese and Chinese culture. Emmi is a Finnish citizen and has lived in Finland, Sweden, China, and Portugal.

Founder and ceo

Helene Auramo is a co-founder of Listeds and Nordic Listed Leaders. She has previously co-founded Slush, Indiedays, Zipipop, and Okimo Clinic, building ventures at the intersection of media, technology, and community. She holds board positions at the Finnish Business School Graduates (Suomen Ekonomit) and Finnvera, and serves as Chair of the Investment Committee at the Finnish Business School Graduates. Helene is also a columnist for Talouselämä, Finland’s leading business magazine, and Aamulehti, one of the country’s largest newspapers. Her work focuses on leadership, growth, and the structures that shape decision-making in Nordic companies. She was awarded Future Board Member of the Year in 2022 by Future Board.

Founder and ceo

Helene Auramo is a co-founder of Listeds and Nordic Listed Leaders. She has previously co-founded Slush, Indiedays, Zipipop, and Okimo Clinic, building ventures at the intersection of media, technology, and community. She holds board positions at the Finnish Business School Graduates (Suomen Ekonomit) and Finnvera, and serves as Chair of the Investment Committee at the Finnish Business School Graduates. Helene is also a columnist for Talouselämä, Finland’s leading business magazine, and Aamulehti, one of the country’s largest newspapers. Her work focuses on leadership, growth, and the structures that shape decision-making in Nordic companies. She was awarded Future Board Member of the Year in 2022 by Future Board.

Authors

Journalist

Emmi Laine is head of business content at Listeds and our lead for finance and business coverage. She sets the editorial agenda, interviews Nordic business leaders, and writes stories, newsletters, and social content on timely market and corporate topics. Emmi brings nearly eight years of experience from Shanghai's Yicai Global / Yicai Media Group, where she was awarded for reporting on China’s economy, finance sector, and technology innovation. She holds an MSc in Innovation and Entrepreneurship from ESADE Business School in Barcelona and a Master’s degree in International Design Business Management from Aalto University. She also holds a Bachelor’s degree in Culture Studies with a major in Journalism from Stockholm University and has studied Mandarin Chinese and Chinese culture. Emmi is a Finnish citizen and has lived in Finland, Sweden, China, and Portugal.

Founder and ceo

Helene Auramo is a co-founder of Listeds and Nordic Listed Leaders. She has previously co-founded Slush, Indiedays, Zipipop, and Okimo Clinic, building ventures at the intersection of media, technology, and community. She holds board positions at the Finnish Business School Graduates (Suomen Ekonomit) and Finnvera, and serves as Chair of the Investment Committee at the Finnish Business School Graduates. Helene is also a columnist for Talouselämä, Finland’s leading business magazine, and Aamulehti, one of the country’s largest newspapers. Her work focuses on leadership, growth, and the structures that shape decision-making in Nordic companies. She was awarded Future Board Member of the Year in 2022 by Future Board.

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Monthly Leadership Moves

September's finance seats started filling from inside

Oct 9, 2026

Through August, every incoming chief financial officer at a Helsinki issuer since December 2025 already held the title somewhere else. In September, Vincit promoted from its own controlling team and UPM made WISA's interim finance chief permanent. The lateral market did not close: Tieto and Relais both hired sitting finance chiefs, and Terveystalo is now searching for one.

Listeds had recorded at least ten CFO changes across Nasdaq Helsinki and First North between December 2025 and August 2026, and not one incoming finance chief was taking the job for the first time. Last month's roundup ended on whether September would break that run. It did, at the smaller end of the market.

The month's second signal was structural. Viking Line, Kalmar, Terveystalo and the planned UPM and Sappi graphic paper joint venture each redrew an organization in September and named the people to run it. Board-level change stayed thin, and most of it was nomination-board formation for the 2027 annual general meetings rather than turnover in the boardroom itself.

Vincit and WISA broke the lateral run with internal finance appointments

The Digia and Vincit chain that opened in August closed in September. Vincit named a successor on September 01, and went inside to do it. Paula Kuittinen, Head of Management Accounting and Business Control since March 2026 and before that more than 12 years in finance roles at CGI, most recently she has been the Finance Director, now becoming the CFO on November 1. "It is great to be able to appoint our new CFO from within the company," said chief executive Julius Manni.

On September 18, UPM's board appointed Lasse von Hertzen, previously WISA's interim CFO, its permanent Senior Vice President and Chief Financial Officer, effective when the plywood demerger completes. That finishes a WISA leadership team named in full by the parent's board, with trading expected from November 2.

LapWall took a third route. Tuomo Riihonen's employment ended on September 24, and the next day the company named Tiina Määttä Chief Financial Officer and Legal Officer from October 1. Her record runs through finance and legal advisory roles at Talenom and Greenstep and the chief executive seat at Kymsol Group.

Kempower named Lasse Hatinen on September 9, bringing more than 15 years of finance leadership in listed industrial companies. He joins by March 1, 2027 at the latest, from Metso where he has served as Senior Vice President, Group Controller. Juha Jaatinen, interim since August 13, holds the seat until then.

Larger issuers kept buying finance chiefs who already hold the title

The lateral market remains the default above small cap. Tieto appointed Juuso Pajunen from Terveystalo on September 16, and Terveystalo opened its search the same day. Relais Group appointed Joonas Mäkipeska on September 14 from Technopolis, where he is Chief Financial and Strategy Officer, after CFO roles at Holiday Club Resorts, Sponda and ALD Automotive. Chief executive Christian Gebauer framed the brief as "continued profitable growth, supported by financial discipline, strong cash conversion and investment discipline."

Stora Enso moved the other way on the same theme: on September 17 CFO Niclas Rosenlew was named deputy chief executive to President & CEO Hans Sohlström while keeping the finance role. Tallink appointed Armin Penner as its new CFO on September 8. He has worked for more than six years as CFO and Management Board Member of Circle K Eesti and has also served as CFO of Euroapteek and Ragn-Sells Eesti. 

SSH went outside for its chief executive, Arvo went to its own board

September's two listed-issuer CEO appointments took opposite routes. SSH Communications Security named Lars Bell from Omada, where he was Chief Customer Officer and interim chief executive, effective October 1. The share rose 49.5% in the five sessions to September 7. Bell inherits a business whose second-quarter revenue recovered to EUR 5.7 million, up 6.8%, while EBITDA fell 40.7%, and he starts on the same day as CFO Cristian Arias. The third-quarter report will be the first one a rebuilt executive team owns.

Arvo Sijoitusosuuskunta named Teemu Kokko, a member of its board of directors since 2021, deputy chief executive from December and chief executive from April 1, 2027. The selection ran through a nomination committee drawn from the cooperative's supervisory board, one level above the board Kokko sits on. He inherits first-half operating profit of EUR 8.5 million against EUR 6.5 million a year earlier, most of the step-up traced to an approximately EUR 6.9 million gain on the HANZA exit.

Reorganizations, not departures, produced most management-team changes

The month's largest management-team changes came attached to new structures. Kalmar announced plans on September 3 to simplify its operating model by combining divisions. Terveystalo said on September 4 it will report in four segments from 2027, Healthcare Services, Oral Health, Public Partnerships and Sweden, and named Ville Pesonen senior vice president for oral health. Viking Line renewed its management structure on September 8 and established a Viking Leadership Team. UPM and Sappi nominated Gunnar Eberhardt and Stephen Blyth to lead their planned graphic paper joint venture on September 8, and the wider management team on September 14. 

Technology seats moved alongside. Aspocomp named Ville Raatikainen Chief Engineering and Technology Officer from January 1, 2027, the second outside hire to its team since July, timed to the phased commissioning of its expanded Oulu plant.

Directors moving into executive roles drove September's committee changes

Only one board chair left. Kari Syrjänen resigned as chair of Biohit on September 2. The two committee changes that followed shared a cause: a director taking an executive job. Tulikivi's audit committee chair Niko Haavisto left the board after becoming CFO of Fiskars, and Panu Paappanen became the chairperson on September 14. At Olvi, director Tarmo Noop left the audit committee to run the Estonian subsidiary A. Le Coq on an interim basis, and board chair Nora Hortling replaced him.

September split the finance pipeline by company size

September broke the lateral CFO run, but only at the smaller end of the market: Vincit and WISA filled their finance seats from inside, while Tieto and Relais kept hiring sitting finance chiefs. At chief executive level, Arvo promoted from its own board and SSH went outside. Most management-team changes followed reorganizations rather than departures. On boards, the committee changes came from directors moving into executive roles, and most other activity was nomination-board formation for 2027. With interim finance cover at Kempower and Relais and an open seat at Terveystalo, the next test is whether larger issuers start filling finance seats from within. 

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