Ombudsman for Equality

Managing directors

According to the settled case law of he Finnish Supreme Court, managing directors of limited companies and cooperatives cannot be salaried employees of the organisations where they are employed, as managing directors are considered statutory institutions in these organisations. On the other hand, the Finnish Supreme Court considers that managing directors of organisations that are not governed by laws that stipulate on the role of managing directors (registered associations, for example) can be salaried employees of these organisations provided that they meet the characteristics of employees as defined in the Finnish Employment Contracts Act.

The revised wording of the Finnish Equality Act does not rule out the application of the definition of employees to managing directors of limited companies and cooperatives who do not have employment contracts or are not in some other kind of legal relationship comparable to employment. However, the definition does not apply to managing directors who hold shares in limited companies and therefore also act as entrepreneurs.

As regards discrimination in the workplace, the provisions of the Finnish Equality Act apply to people who work in some other kind of legal relationship comparable to employment only ‘where applicable.’ The provisions governing managerial prerogative, for example, do not therefore necessarily apply to managing directors or self-employed people, who can independently decide how their work is organised. In terms of managing directors of limited companies, another consideration in situations involving recruitment and the termination of employment, for example, is the relative freedom given to limited companies as regards choosing their own managing directors.

Nevertheless, European case law clearly stipulates that any unfavourable treatment of women on the grounds of pregnancy constitutes direct discrimination on the basis of sex or gender and entitles the victim to compensation. In other words, if a woman is not appointed as managing director due to pregnancy or motherhood or, alternatively, if a woman is dismissed from office on the basis of pregnancy or motherhood, the company may be ordered to pay compensation to the injured party.