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Written Agreements

In Finland, although it is not mandatory for employers to offer written contracts, they are required to provide written particulars for employees whose employment relationship is valid indefinitely or whose fixed-term relationship exceeds 1 month (unless a written agreement is already in place). Employers must also provide such a statement to employees who repetitively use fixed-term contracts of less than 1 month with similar terms.

If the terms of work change, the employer is required to provide the employee with written information no later than the end of the pay period following the change unless the change arises from an amendment in legislation or a collective agreement.

The Employment Contracts Act of Finland prohibits employees from disclosing any trade secrets or engaging in a competitive activity during their employment. Additionally, a non-competition agreement can be signed at the start or during the employment relationship that restricts an employee from joining a competitor or engaging in competing activities post-employment if there is a particularly compelling reason related to the employer's operations. The maximum restriction period is 1 year, and the compensation must be paid during the restriction period unless otherwise agreed.

Oral Agreements

The Finnish Employment Contracts Act allows employment contracts in oral, written, or electronic format. However, employers are required to provide written particulars for employees whose employment relationship is valid indefinitely or whose fixed-term relationship exceeds 1 month, (unless a written contract is already in place). Employers must also provide such a statement to employees who repetitively use fixed-term agreements of less than 1 month with similar terms.

Implied Agreements

The labor code of Finland does not offer specific provisions about implied terms in employment contracts. All terms of the contract are, however, encouraged to be put into writing.

According to the Working Time Act of Finland (the Act), which entered into force on January 1, 2020, the statutory number of hours in a workday should not exceed 8 hours a day and 40 hours a week. Unless otherwise indicated by a collective agreement, regular working hours can be extended by 2 hours, up to a total of 10 hours. Weekly working hours cannot exceed 48 hours, and working hours should not exceed an average of 40 hours over a period of 4 weeks. In period-based work, the regular hours should not exceed 120 hours during a 3-week period or 80 hours during a 2-week period. The period-based working hours can only be used in companies, shops, institutions, and jobs listed in the Act.

Telecommuting is defined as flexible, voluntary, or paid work based on agreed rules, which can also be done outside of the actual workplace. The working time can either be entirely or partially remote. Remote work arrangements are usually agreed upon in writing.

In Finland, the following holidays are observed:

• New Year - January 1
• Epiphany - January 6
• Good Friday - date subject to change annually
• Easter Monday - date subject to change annually
• May Day (Vappu) - May 1
• Ascension Day - date subject to change annually
• Midsummer Eve - date subject to change annually*
• Midsummer - date subject to change annually
• All Saints' Day - date subject to change annually
• Independence Day - December 6
• Christmas Eve - December 24*
• Christmas Day - December 25
• Boxing Day - December 26

*Although not official public holidays, many Finns do not work on Midsummer Eve and Christmas Eve. Businesses frequently close for all or part of the day, and public transit runs on special timetables. Collective agreements will often specifically stipulate working hours for these two days.

The Employment Contracts Act allows a trial period at the beginning of the employment relationship up to 6 months if agreed to by both parties. For fixed-term employees whose employment period lasts less than 8 months, the trial period may not exceed half the employment duration, up to 6 months.

If a collective agreement applicable to the employer contains a provision on a trial period, the employer must comply with said provisions and inform the employee when concluding the contract.

During the trial period, the employment contract can be terminated by both sides. However, the employment contract may not be terminated on grounds that are discriminatory or otherwise irrelevant to the purpose of the probationary period.

Notice Period

According to the Employment Contracts Act of Finland, the notice for dismissal is based on the duration of the employment relationship. The employer must give the following notice periods:

• 14 days for the length of service of up to 1 year
• 1 month for the duration of service between 1 and 4 years
• 2 months for service between 4 and eight years
• 4 months when employment lasted 8 to 12 years
• 6 months for the duration of employment over 12 years

Unless otherwise agreed, the employee must give the following notice period if the employment relationship has continued uninterrupted:

• 14 days, if the employment lasted up to 5 years
• 1 month if the employment relationship has continued for more than 5 years

Collective agreements can be used to agree on notice periods. If the notice periods under the collective agreement differ from the statutory notice periods, the employer and the employee must comply with the notice periods under the collective agreement, unless the collective agreement provides for the possibility of agreeing on other notice periods.

Severance Benefits

Severance pay is not formally regulated for non-public employers in Finland. However, employers must pay out employees' remaining salary, unused holiday leave, and unpaid bonuses or commission when their employment contract is terminated. Employees with difficulty finding new employment may become eligible for a severance payment from public authorities. Employees who have been laid off (suspended with no payment, but the employment relationship is not terminated) for more than 200 calendar days are entitled to severance pay as well as holiday compensation if they are terminated. Their severance pay is calculated based on the notice period specified by their employer.

Minimum Wage

Although there is no law on minimum wages in Finland, many collective agreements (which set a minimum wage) are "generally binding," which means they are adhered to in the sector covered by the agreement, irrespective of whether or not the employer is bound by that specific collective agreement. When employers pay wages, they must give the employee a statement showing the payment amount and the grounds on which the amount has been determined. The wage statement is a crucial instrument for clarifying any possible calculation errors or other mistakes that may have occurred when calculating wages.

The salary must be paid on the last day of the pay period unless agreed otherwise. If the hourly wage is calculated for a period shorter than a week, it must be paid at least twice a month; otherwise, it should be paid once a month. For performance-based work, the payment period cannot exceed 2 weeks unless the performance-based salary is included in the monthly pay. If the performance-based work extends beyond one pay period, a portion of the salary, based on the time spent on the work, must be paid for each pay period.

Overtime, Holiday & Vacation Pay

Remuneration for overtime work shall be at least equal to the pay for the agreed working time. Regular pay plus 50% for the first 2 hours worked, and regular pay plus 100% for each subsequent hour shall be payable for daily overtime. Regular pay plus 50% shall be payable for weekly overtime.

If the employee wants time off rather than payment, the duration of time off will be granted under the principles of remuneration for overtime. Employers must grant the time off within six months of the additional work or overtime unless otherwise agreed. The employee can add free time to saved leave through an agreement with the employer.

Employees working on public holidays are entitled to twice their daily wages. Employees have the right to receive their regular pay for annual leave. The leave pay must be issued before the start of the annual leave. Holiday pay for vacations not exceeding six days may be paid on the employee's normal payday.

Visas

There are 4 types of visas in Finland:

• Single-entry visas, which allow individuals to enter Finland once and stay for up to 90 days in any 180-day period
• Double-entry visas, which allow individuals to enter Finland twice and may be valid within the Schengen area for up to 90 days in any 180-day period
• Multiple-entry visas are granted for several consecutive visits to the Schengen area. The total duration of the stays may not exceed the number of days stated on the visa sticker, that is, up to 90 days in a 180-day period. A multiple-entry visa is valid for a maximum of 5 years.
• Airport transit visas allow the visa holder to transit via the international zone of the airport during a stopover or change between two flights. Entry in the national zone is prohibited.

To visit Finland as a tourist, a visitor needs a short-term visa, for a period that does not exceed 90 days. This type is also known as a Schengen (tourist) visa.

Work Permits

Individuals who plan to work in Finland will usually need a residence permit. Work without a residence permit may be punished with a fine. There is a universal requirement that the salary an individual plans on receiving from their Finnish employer be high enough to support them to qualify for a work permit.

When applying for a residence permit on the basis of employment, the residence permit application depends on the kind of work an individual is seeking. Students who have completed a degree in Finland and who have a valid residence permit for studies may apply for a residence permit to seek work. Individuals who have already been granted a residence permit on other grounds may be allowed to work. They should look to their residence permit decision to see if this is the case.

Citizens of EU Member States, Iceland, Liechtenstein, Norway or Switzerland do not require a permit for Finland. They must nonetheless register their right of residence.