These things you should know about employment contracts in Finland

In Finland, many issues related to employment are negotiable. Nevertheless, especially international members often have questions on e.g. trial period and termination. Professionals of Business and Technology are glad to assist all members facing uncertainty.

In Finland, the Employment Contracts Act defines the fundamental legal framework concerning employment. It applies to the majority of employment relationships, regardless of the nature of the work in question.

The employment contract is not subject to formal requirements – it may be, in fact, oral, written or electronic. However, Employment Lawyer Salla Viitanen from Professionals of Business and Technology says that your best bet is to have the contract in writing.

– A written contract for employment should be the starting point, she says.

Viitanen also encourages employees to negotiate the contract, instead of just signing on the dotted line. And if there’s something in the contract you don’t understand, ask for clarification, she adds.

– It’s also a good move to send us a copy of the contract before signing – our advisors are happy to take a look and offer their views. 

Almost all employment contracts in Finland feature a trial period. The maximum duration of the trial period is six months, says Viitanen.

– During the trial period, either party can terminate the contract on a moment’s notice.

Fixed-term or indefinite employment contract?

The employment contract can be either fixed-term or valid indefinitely. A fixed-term contract terminates automatically at the end of an agreed working period. 

An employee can terminate an indefinitely valid employment contract without offering cause – as long as they comply with the notice period.

From the employer’s side, an indefinitely valid contract can be terminated only on legal grounds. There are two kinds of termination grounds: financial/production related grounds and personal grounds. 

– Financial or production-related reasons are much more common, especially when companies are struggling and business is bad, says Viitanen. However, if the reduction in work is thought to be temporary, the employer is only entitled to lay off employees for a set period.

Under law, personal grounds for termination must be ‘proper and weighty’. These reasons typically relate to serious violations or mismanagement of one’s obligations: e.g. negligence of the obligation to work and obvious carelessness in duties, refusal to work, disobeying orders, dishonesty, and unbusinesslike behaviour.

– In such cases, the employer must first issue a warning and give the employee a chance to change one’s behavior, says Viitanen.

Text: Sami Anteroinen

Do you have questions about working hours? As a member, you can ask for help from our employment counseling!