Employing in Finland

This short article meant for employers summarizes the rules and regulations that employers should take into consideration when hiring employees in Finland.

Work contract

The employer and employee should both sign a work contract. The contract has to be in written form and contain at least the following:
- name of the employer
- name of the employee
- nature of the work
- starting date and duration of the employment
- notice- and trial periods
- pay and working hours

Working hours

Regular working hours are usually 8 daily hours and 40 weekly hours or less. In a two week period the working hours may not be more than 80 hours. In a three week period an employee may not work over 120 hours. The weekly hours may be arranged in longer periods, during which the average weekly hours do not exceed 40 hours. Each workplace must have a work schedule from which the workers working hours can be read.

Wages

There is no minimum wage in Finland. However the collective agreement determines the pay and other employment terms. It is possible to agree on benefits in addition to the wage. The wages in the collective agreements are determined according to the employee’s skills, experience and the geographical situation of the workplace. Overtime working is compensated with higher pay. Sunday work payment is doubled. Evening and night work are paid according to the collective agreements.

Sick-leave

After working for the same employer for at least one month, employees have the right to receive sick-leave pay. In this case, the working inability must be determined. According to the law the employees sick-leave payment has to be paid for nine days, but usually the payment period is longer according to the applicable collective agreement.

Accident insurance

An employee working for a Finnish employer in Finland has to be insured by the employer with a mandatory accident insurance. This insurance covers both accidents at work and on the journey to work. If a foreign employer sends an employee temporarily to work in Finland, the employee may be covered by the sending country’s insurance.

Rest periods

If the daily working time is at least 6 hours the employee has to get at least 30 minutes rest period. There must be given a daily rest period of at least 11 hours. A weekly rest period has to be at least 35 hours.

Occupational health service

The employer must have an agreement for occupational health services.

Holidays

An employee has a right to receive a normal wage also for the annual holiday. The holiday leave accumulates 2 days or 2½ days for each holiday credit month. Holiday compensation has also to be paid. The compensation is 9-11,5%, and in the construction branch 18.5 %, of the accumulated wages during the holiday credit year. According to many collective agreements the employee also has a right to holiday money, which is usually a half of the holiday wages.

Safety in the workplace

The employer has to take care that the working conditions are safe. The guiding principle of employment laws in Finland is to guarantee minimum benefits for the weaker party to an employment relationship – the employee.

What to do next?

Recruit new employees easily and quickly through our site. Register as employer at www.ejobs.fi, and advertise your job openings to thousands of job seekers. Welcome to work with us!

For further information about labour legislation consult the Ministry of Employment and the Economy site.