Oulu ordered to pay unpaid wages from pandemic period

Finland’s Supreme Court has ruled against the city of Oulu in a six-year legal dispute, upholding lower court decisions that the municipality must pay wages withheld from employees during the coronavirus pandemic.

The case began in spring 2020 when Oulu suspended work and pay for some staff, citing pandemic restrictions that closed schools, libraries, and youth facilities. Some employees received notice only the day before. No alternative work was provided.

A district court in 2022 ordered the city to pay over €16,000 in unpaid wages to ten workers. The city appealed, but the Rovaniemi Court of Appeal upheld the ruling in May 2024. The Supreme Court confirmed the decision on Friday, adding legal costs of over €80,000 across two court levels.

Oulu stated it will process payments in late summer after consulting with employee representatives, calling the final rulings a positive development. The city noted the case sets a national precedent in interpreting employment law for similar future situations.