Working Conditions in Finland

1. Minimum Working Conditions

The rules regarding the terms and conditions of employment are stipulated in both statutory law and the applicable collective bargaining agreement – if any. In particular, collective bargaining agreements provide more specifically the minimum terms and conditions of employment, which include, amongst others: arrangements of working time, minimum wages, protection against dismissals etc.

2. Salary

There are no regulated minimum salaries or wages in Finland. However, collective bargaining agreements may include mandatory provisions on minimum wages and salaries. Additionally, the collective bargaining agreements often include rules on mandatory salary or wage increases.

3. Maximum Working Week

The normal maximum regular working hours are 40 hours per week (8 hours per day) and according to most collective bargaining agreements 37.5 hours per week.

4. Overtime

Work done at the employer’s request in excess of the maximum regular working hours (in general 40 hours per week and 8 hours per day) is considered overtime work. Overtime work must be compensated based on the actual working hours put in by the employee. The overtime work is compensated with the applicable hourly salary rate increased by 50 % or 100 % depending on the duration of the overtime work (50 % applies, in general, for the first two hours of daily overtime and for weekly overtime). With certain manager-level employees it is possible to agree on a monthly lump sum compensation for overtime. Certain executive and comparable independent positions are not entitled to any overtime compensation.

5. Holidays

An employee earns two and a half days of holiday per month for each full working month starting on April 1. However, if the employment has lasted less than one year by March 31, the employee earns only two days of holiday per month. As Saturdays are included in the calculation, full holiday entitlement is five weeks of paid holiday annually of which four weeks is to be given in the summer time and one week during the rest of the year, unless otherwise agreed.

6. Employer’s Obligation to Provide a Healthy and Safe Workplace

The employer must ensure occupational safety and health in order to protect employees from accidents and health hazards, as provided in the Finnish Occupational Safety and Health Act.

Under the Occupational Health Care Act (1383/2001), the employer is obliged to arrange occupational health care at its expense in order to prevent health risks and problems related to work and working conditions and to protect and promote the safety, working capacity and health of its employees.

The employer is also obligated to maintain an accident insurance policy covering all the employees and insuring them against occupational diseases and work-related accidents.

For more information, please contact L&E Global.
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