N2S provide expert solutions for businesses looking to expand or grow into Finland, including compliance, payroll management and employment support. Request our Services to find out more about how we can help you.
Navigating Finnish employment legislation can be complex due to variations (including binding collective bargaining agreements) across industries. At N2S, we simplify compliance, making it clear and straightforward for our clients and customers to grow and excel in Finland.
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1. Onboarding in Finland can be straightforward for providers, like N2S, that have standard templates and processes.
2. Note that employment contracts must be in writing.
3. For employments, there is a statutory probationary period of up to 6 months, during which either party can terminate the employment upon giving notice.
There are two core engagement types in Finland:
Customers should consider carefully how they wish to engage their workforce and N2S can support customers in implementing compliant and scalable solutions.
1. Customers should ensure that Independent Contractors (ICs) that they use are appropriately vetted and classified. This will help protect the business from misclassification claims.
2. Key considerations include the below, if you require further information or support, please contact us.
1. Standard working hours in Finland are 7.5 hours per day and circa 37.5 hours per week.
2. The standard workweek is Monday to Friday.
3. Collective labour agreements generally mandate up to 2x pay overtime, depending on the total overtime worked.
1. In Finland, annual leave is up to 24 days per year in the first year of employment and 30 days thereafter.
2. Sick pay is up to 10 days from the employer, paid by the local municipality thereafter.
3. Pregnancy leave in Finland is paid for 40 days.
4. Family leave is up to 160 days, per parent, per child. Parents can transfer up to 63 days to the other parent.
The termination process in Finland is relatively straightforward – terminations must generally have “a substantial reason” if the employee is outside of their probationary period.
1. Notice periods are stipulated in the employment contract (or any collective agreement) and is usually linked to the length of service.
2. The total employer notice period varies according to length of service, starting at 14 days and increasing up to 6 months after 12 years of service.
3. There is no general entitlement to severance pay, unless the employee is over 12 years of service.
4. Note that for collective redundancies, Finnish local labour market councils and trade union representatives need to be consulted, and redundancy pay may be applicable.
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