Finland Eases Residence Permit Rules for Foreign Workers Amid Labour Shortages

As of June 11, 2025, Finland has implemented more flexible residence permit rules for foreign nationals working in the country. The new policy affects more than 51,000 employed migrants and is part of a broader effort to tackle labour shortages across key sectors.

Extended Job Search Period for Certain Foreign Workers

Under the revised rules, foreign employees holding a work-based residence permit now have a three-month grace period to find new employment if they lose their current job. Previously, unclear regulations around unemployment duration led to uncertainty for permit holders.

However, the Finnish Immigration Service (Migri) confirmed that some categories of workers now benefit from an extended six-month protection period. This includes:

• Migrants employed as specialists
• Those who have held a work-based residence permit in Finland for more than two years

During this period, it is crucial that the residence permit remains valid. If the permit expires or the worker cannot secure new employment within the designated time, the permit may be withdrawn—unless the individual qualifies for a new permit under other grounds, such as family ties or studies.

Labour Demand Driving Immigration Reform

These reforms are aligned with an EU directive that will also come into effect in other member states in 2026. Finland is acting ahead of schedule to address growing workforce gaps, especially in healthcare, construction, IT, and education.

“The new law provides clarity on how long a migrant can be unemployed before risking permit withdrawal,” said Asta Kassinen, Process Owner at Migri. She noted that since April 2023, the agency had already practiced leniency during unemployment within the three-month grace period.

Stricter Obligations for Employers

While the policy eases conditions for migrant workers, employers now face tighter reporting obligations. From June 11, employers must notify the Immigration Service via the Enter Finland platform within 14 days if a worker's contract ends prematurely or their employment status changes.

Previously, employers were only required to report the hiring of foreign workers—not the end of employment. Non-compliance with this regulation may lead to penalties or sanctions.

“This change improves the monitoring of work-based residence permits and ensures timely follow-up on permit eligibility,” Kassinen added.

Unemployed Workers May Reapply for Jobs in Shortage Sectors

Migrants who become unemployed may also be eligible to apply for jobs in sectors identified as critically understaffed, further supporting Finland’s strategic response to labour market needs.