How to Hire Workers in Finland | Employer of Record (EOR) in Finland

Finland observes between 12 to 13 public holidays i per year. Only two of the holidays (May 1 and December 6) are paid days off for hourly Workers. Salaried Workers are paid for all public holidays falling on working days. Sector-specific CBAs, depending on the task and industry of the Worker, typically extend paid status to all public holidays. If work is performed on a public holiday, wages are payable at 200% unless a sector-specific CBA sets a higher premium.

The vacation year in Finland runs from April 1st through March 31st. Workers with less than one year of service accrue up to 24 vacation days per year or two days per month. After one year of service, Workers accrue up to 30 vacation days or two and a half days per month. The client may choose whether to carry over leave year to year. Generally, Workers are permitted to carry over five days per year. Accrued but unused leave must be paid at termination.

There are no official classifications of Workers in Finland. However, collective bargaining agreements may provide different protections and benefits for different classes of Workers.

Probationary periods are permitted for a maximum of six months for indefinite contracts or 50% of a fixed term contract length. During the probationary period, either party may terminate the engagement without notice and without the 'proper and weighty reason' standard otherwise applicable. Termination during probation must not, however, be based on discriminatory or otherwise improper grounds (for example, pregnancy or protected leave). If the Worker is absent due to illness or family leave during probation, the probation period may be extended proportionally up to the statutory cap.

After one month of service, Workers are entitled to paid sick leave. The employer must pay full-salary for the first nine days of illness or injury. This is referred to as the "waiting period." Employers may request a medical certificate, but it is not required. After the waiting period, the payments are taken over by the Finnish social system (Kela).

A standard workweek is 8 hours per day or 40 hours per week. Premiums are payable for night work. Workers are entitled to an unpaid rest period of at least 30 minutes if they work more than six hours per day. Workers are entitled to an uninterrupted daily rest of 11 hours every 24 hour period and an uninterrupted weekly rest of 35 hours.

Workers qualify for overtime for work exceeding eight hours a day or 40 hours a week. Overtime hours cannot exceed an average of 48 hours a week over four months. The first two hours of daily overtime are paid at 150% and subsequent hours are paid at 200%. Weekly overtime is paid at 150%.

13th month salaries are customary in Finland.

Termination requires a valid reason and notice. Severance does not apply unless negotiated by the Worker. Notice periods are based on length of service: 0-1 year of service: 14 days; 1-4 years of service: 1 month; 4-8 years of service: 2 months; 8-12 years of service: 4 months; 12+ years of service: 6 months.

Workers are required to observe a notice period in resigning, but do not need to provide a reason. The notice period is 14 days for 0 to 5 years of service and one month's notice thereafter.

For termination on collective grounds (i.e. restructuring), the employer must provide notice to employee representatives, provide information prior to a consultation, inform the local employment authorities of the consultation procedure, facilitate a cooperation consultation over a minimum of 14 days for fewer than 10 employees or six weeks for 10 or more. Failure to follow the cooperation consultation procedure may result in compensation due to the Worker up to a maximum of EUR 35,590 each.