Navigating working time regulations is crucial for employers operating in Finland. The Finnish Working Hours Act (Työaikalaki) provides the framework for standard working hours, overtime, rest periods, and other related aspects of employment. This legislation aims to ensure fair working conditions and protect employee well-being by setting clear limits on working time and mandating adequate rest.
Compliance with the Working Hours Act is mandatory for most employment relationships in Finland. While collective agreements (TES) can sometimes modify certain provisions, they generally build upon or enhance the minimum standards set by the Act. Understanding these regulations is essential for employers to ensure legal compliance and manage their workforce effectively.
Standard Working Hours and Workweek Structure
The standard regular working time in Finland is generally limited to a maximum of 8 hours per day and 40 hours per week. This is the most common structure, often referred to as the general working time.
However, working time can also be arranged as average working time. In this model, regular working time can exceed 8 hours per day or 40 hours per week temporarily, provided that the average regular working time over a specific averaging period (typically up to 52 weeks, depending on the collective agreement or agreement with employees) does not exceed 40 hours per week.
Some specific types of work or industries may have different standard working time arrangements defined by law or collective agreements, such as periodic work or shift work, but the core principle of limiting total working hours remains.
Overtime Regulations and Compensation Requirements
Work performed beyond the standard regular working hours defined by law or collective agreement is considered overtime. Overtime can only be performed with the employee's consent, which should ideally be given separately for each instance or for a limited period.
There are limits on the amount of overtime an employee can work. Overtime is generally limited to a maximum of 138 hours over a four-month period and a maximum of 250 hours per calendar year. Additional overtime (up to 150 hours per year) may be possible with a local agreement between the employer and the employee representative or employees.
Overtime compensation is legally mandated and calculated based on the employee's regular hourly wage. The standard overtime compensation rates are:
| Overtime Type | Compensation Rate (Increase) |
|---|---|
| First 2 hours of daily overtime | 50% increase |
| Subsequent daily overtime hours | 100% increase |
| Weekly overtime | 50% increase for all hours |
Weekly overtime refers to hours worked beyond the regular weekly maximum (e.g., 40 hours) that are not already compensated as daily overtime. Compensation for overtime can, by agreement, be converted into paid time off instead of monetary payment, with the time off equivalent to the compensated rate (e.g., 1.5 hours off for 1 hour of 50% overtime, 2 hours off for 1 hour of 100% overtime).
Rest Periods and Break Entitlements
Ensuring adequate rest is a key component of Finnish working time law. Employees are entitled to specific rest periods:
- Daily Rest Break: If the working day is longer than 6 hours, the employee is entitled to a rest break of at least 30 minutes during the working day. This break is typically unpaid and employees are free to leave the workplace. Collective agreements may provide for paid breaks or different arrangements.
- Daily Rest Period: Employees must be given an uninterrupted rest period of at least 11 hours between working days. There are limited exceptions for certain types of work or situations, but the general rule is 11 hours.
- Weekly Rest Period: Employees are entitled to an uninterrupted weekly rest period of at least 35 hours once every seven days. This rest period should ideally be scheduled to include Sunday. If the nature of the work or workplace conditions prevent a 35-hour weekly rest period, a shorter period (at least 24 hours) may be possible, but the employee must be compensated with additional paid time off equivalent to the missing rest hours within a 14-day period.
Night Shift and Weekend Work Regulations
Work performed between 11 PM and 6 AM is generally considered night work. While night work is permitted, the Working Hours Act includes specific provisions regarding its arrangement and the health and safety of employees performing it. Regular working time for night work should be averaged over a period not exceeding 7 days, and the average should not exceed 8 hours per 24-hour period. Collective agreements often contain more detailed rules and potential compensation for night work.
Work performed on Sundays or public holidays is generally permitted only if the nature of the work or the needs of the workplace necessitate it. Work performed on Sundays or public holidays must be compensated with a 100% increase in the employee's regular wage. This Sunday pay is separate from and in addition to any overtime compensation that might also be due if the hours worked on Sunday exceed regular working time limits.
Working Time Recording Obligations for Employers
Employers in Finland have a legal obligation to keep detailed records of the working hours of their employees. This recording must accurately show the regular working hours, overtime hours, night work hours, Sunday work hours, and the compensation paid for these hours or the time off given in lieu.
The records must be kept up-to-date and be available for inspection by the employee concerned and the labour authorities. The records serve as proof of compliance with the Working Hours Act and collective agreements and are essential for calculating correct wages and compensation. Employers must retain these records for at least the current calendar year plus the preceding two calendar years. Accurate working time recording is a fundamental requirement for ensuring compliance and transparency in the employment relationship.
