Finland has a robust legal framework designed to protect employees and ensure fair treatment in the workplace. These protections are primarily enshrined in the Employment Contracts Act, Working Hours Act, Annual Holidays Act, Occupational Safety and Health Act, and the Act on Equality between Women and Men, among others. This comprehensive system aims to create a safe, equitable, and stable working environment for all employees operating within the country, providing clear guidelines for employers on their obligations and employee rights.
Understanding these regulations is crucial for businesses operating in Finland, whether they are local or international entities employing staff. Compliance with Finnish labor law is not only a legal requirement but also contributes to positive employee relations and a productive workforce. The framework covers various aspects of the employment relationship, from the initial contract to termination, working conditions, and ensuring a safe and non-discriminatory environment.
Termination Rights and Procedures
Termination of an employment contract in Finland must be based on just and weighty grounds. Grounds related to the employee's person typically involve serious breaches of duties or neglect of work-related obligations that are not minor. Economic and production-related grounds may apply if the employer's need for labor has substantially and permanently decreased. Before terminating a contract on grounds related to the employee's person, the employer must typically issue a warning and provide the employee with an opportunity to be heard.
Notice periods for termination are legally mandated and depend on the length of the employee's service with the employer.
| Length of Employment | Employer's Notice Period | Employee's Notice Period |
|---|---|---|
| Up to 1 year | 14 days | 14 days |
| 1 - 4 years | 1 month | 14 days |
| 4 - 8 years | 2 months | 1 month |
| 8 - 12 years | 4 months | 1 month |
| Over 12 years | 6 months | 1 month |
During the notice period, the employment relationship continues with all its rights and obligations. In cases of termination due to economic or production-related grounds, the employer may have an obligation to offer the employee alternative work if available and suitable.
Anti-Discrimination Laws and Enforcement
Finnish law strictly prohibits discrimination in employment based on several protected characteristics. The principle of equality is fundamental, ensuring that employees are treated fairly regardless of their background or personal attributes.
Discrimination is prohibited based on:
- Age
- Origin
- Nationality
- Language
- Religion
- Belief
- Opinion
- Political activity
- Trade union activity
- Family relationships
- Health
- Disability
- Sexual orientation
- Other personal reasons
Both direct and indirect discrimination are unlawful. Direct discrimination occurs when a person is treated less favorably than another in a comparable situation on a prohibited ground. Indirect discrimination occurs when a seemingly neutral rule, criterion, or practice puts persons with a particular characteristic at a disadvantage compared to others, unless the rule is objectively justified by a legitimate aim and the means of achieving that aim are appropriate and necessary.
Enforcement is overseen by bodies such as the Non-Discrimination Ombudsman and the National Discrimination Tribunal. Employees who believe they have been subjected to discrimination can seek advice from these bodies, their trade union, or pursue legal action.
Working Conditions Standards and Regulations
Finnish law sets clear standards for working hours, rest periods, and annual leave to protect employee well-being. The standard working time is generally 8 hours per day and 40 hours per week. Collective agreements often stipulate shorter working hours.
- Overtime: Work performed in excess of regular working hours is considered overtime and must be compensated with increased pay (typically 50% or 100% higher than the basic wage) or equivalent time off, as agreed. Overtime is generally voluntary.
- Rest Periods: Employees are entitled to daily and weekly rest periods. A daily rest break of at least 30 minutes is required if the working day exceeds six hours. A weekly rest period of at least 35 consecutive hours must be granted once per week.
- Annual Leave: Employees accrue annual leave based on their length of service. Generally, employees accrue 2.5 working days of annual leave for each full month of employment after completing one year of service. For service less than one year, the accrual is typically 2 working days per month. Employees are entitled to receive holiday pay during their leave.
While there is no statutory national minimum wage in Finland, minimum wages are typically set through widely applicable collective agreements, which cover the majority of employees.
Workplace Health and Safety Requirements
Employers in Finland have a primary duty to ensure the health and safety of their employees at work. This involves proactive measures to prevent accidents and occupational diseases.
Key employer obligations include:
- Risk Assessment: Identifying and assessing risks in the workplace and taking necessary measures to eliminate or minimize them.
- Safety Planning: Developing and implementing a plan for occupational safety and health, including instructions and procedures.
- Work Environment: Ensuring the work environment, machinery, equipment, and work methods are safe.
- Training and Guidance: Providing employees with adequate training and guidance on how to perform their work safely and use equipment correctly.
- Occupational Health Care: Arranging and funding preventive occupational health care services for employees.
- Employee Participation: Cooperating with employees and their representatives (e.g., occupational safety delegate) on safety matters.
Employees also have a duty to follow safety instructions and use protective equipment. The Occupational Safety and Health Act is the main legislation, and enforcement is carried out by the Regional State Administrative Agencies (AVI).
Dispute Resolution Mechanisms
When workplace issues or disputes arise, several mechanisms are available for resolution, ranging from internal discussions to external legal processes.
- Internal Resolution: The first step is typically to try and resolve the issue directly with the employer or supervisor.
- Employee Representatives: Employees can seek assistance from their shop steward or other employee representatives if they are members of a trade union or if representatives have been elected in the workplace. These representatives can help mediate discussions with the employer.
- Trade Unions: Trade unions play a significant role in representing employees and negotiating with employers, including in dispute situations.
- National Conciliator: For collective labor disputes (e.g., related to collective agreements), the National Conciliator's office provides mediation services.
- Regional State Administrative Agencies (AVI): The AVI's labor inspectorates supervise compliance with many labor laws, including working hours, safety, and employment contracts. They can provide advice and, in some cases, take enforcement action.
- Courts: Individual employment disputes that cannot be resolved through other means can be taken to the district court. Cases involving collective agreements may be handled by the Labour Court.
Employees have the right to seek legal counsel and pursue claims through the court system if their rights under the employment contract or law have been violated.
