What types of employment contract are recognised in Finland?

In Finland there are two types of employment contracts. Types are indefinitely and specific fixed term. There are no minimum term for fixed-term employment. The maximum duration of the fixed-term employment contract is one year.

What are the minimum and maximum terms for which a fixed-term employment contract can be concluded?

Fixed-term employment contracts are terminated without giving notice at the end of the fixed period or on completion of the agreed work.

How can a contract of employment be terminated in Finland?

An employment contract which has been concluded for an indefinite period or is otherwise valid for an indefinite period is terminated by giving notice to the other contracting party.

Unless otherwise agreed, the notice periods to be observed by the employer are the following if the employment relationship has continued uninterruptedly:

  1. 14 days, if the employment relationship has continued for up to one year;
  2. one month, if the employment relationship has continued for more than one year but no more than four years;
  3. two months, if the employment relationship has continued for more than four years but no more than eight years;
  4. four months, if the employment relationship has continued for more than eight years but no more than 12 years;
  5. six months, if the employment relationship has continued for more than 12 years.

What are the applicable notice periods, and what determines their length?

Unless otherwise agreed, the notice periods to be observed by the employee are the following if the employment relationship has continued uninterruptedly:

  1. 14 days, if the employment relationship has continued for no more than five years;
  2. one month, if the employment relationship has continued for more than five years.

Is it possible to employ employees as teleworkers in Finland?

It is possible to employ employees as teleworker in Finland. When employing an employee to work as a teleworker, there must be taken note for example the regulations concerning for example working hours.

What are the rights for women who become pregnant during their employment contract, and are they protected from being dismissed?

The employer shall not terminate an employment contract on the basis of the employee’s pregnancy or because the employee is exercising his or her right to the family leave.

If the employer terminates the employment contract of a pregnant employee or an employee on family leave, the termination shall be deemed to have taken place on the basis of the employee’s pregnancy or family leave unless the employer can prove there was some other reason.

The employer shall be entitled to terminate the employment contract of an employee on maternity, special maternity, paternity, parental or child-care leave on the financial and prodduction-related grounds only if employers operations cease completely.

What types of paid days-off are the employees entitled to in Finland?

In Finland, an employee is entitled to two and a half weekdays of holiday for each full holiday credit month. However, the entitlement is two weekdays of holiday for each full holiday credit month if, by the end of the holiday credit year, the duration of the employment relationship has been an uninterrupted period of less than one year. When the number of days holiday is calculated, any fraction of a day is rounded up to constitute one full day of holiday.

Employees who are prevented from performing their work by an illness or accident are entitled to pay during illness. If the employment relationship has lasted for a minimum of one month, the employee is entitled to full pay for the period of disability up to the end of the ninth day following the date of falling ill. In employment relationships that have continued for less than one month employees are correspondingly entitled to 50 per cent of their pay.

Is it possible to include a non-competition clause in the employment contract, and what are the grounds for concluding a valid non-competition agreement?

It is possible under Finnish law to made an agreement of non-competition. An agreement of non-competition may restrict the employee’s right to conclude a new employment contract or to engage in the trade concerned for a maximum of six months.

Is the employer obliged to pay compensation for the period of validity of a non-competition clause/agreement after the termination of employment?

An agreement of non-competition does not bind the employee if the employment relationship has been terminated for a reason deriving from the employer.

What happens to employees if their employer goes bankrupt?

If the employer is declared bankrupt, the employment contract may be terminated by either party regardless of its duration. The period of notice is 14 days. The pay due for the period of bankruptcy shall be paid from the bankrupt’s estate.

Are there any courts specially appointed for the purpose of dealing with labour law matters in Poland?

In Finland there are special Labour Court which hears and resolves civil cases concerning employees’ collective agreements and public service collective agreements, as well as civil cases.

In the event that an employee is a debtor in enforcement proceedings in Finland, to what extent is it possible for a bailiff to seize remuneration?

As a general rule, one of third of wages can be seized.