Finland

< View all countries

Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Finland. See a sample of popular sections below.

Termination of Employment

According to the Employment Contracts Act of Finland, the notice for dismissal is based on the duration of the employment relationship. The employer must give the following notice periods:

  • 14 days for the length of service of up to 1 year
  • 1 month for the duration of service between 1 and 4 years
  • 2 months for service between 4 and eight years
  • 4 months when employment lasted 8 to 12 years
  • 6 months for the duration of employment over 12 years

Unless otherwise agreed, the employee must give the following notice period if the employment relationship has continued uninterrupted:

  • 14 days, if the employment lasted up to 5 years
  • 1 month if the employment relationship has continued for more than 5 years

Collective agreements can be used to agree on notice periods. If the notice periods under the collective agreement differ from the statutory notice periods, the employer and the employee must comply with the notice periods under the collective agreement, unless the collective agreement provides for the possibility of agreeing on other notice periods. 

 

Work Permits

Individuals who plan to work in Finland will usually need a residence permit. Work without a residence permit may be punished with a fine. There is a universal requirement that the salary an individual plans on receiving from their Finnish employer be high enough to support them to qualify for a work permit.

When applying for a residence permit on the basis of employment, the residence permit application depends on the kind of work an individual is seeking. Students who have completed a degree in Finland and who have a valid residence permit for studies may apply for a residence permit to seek work. Individuals who have already been granted a residence permit on other grounds may be allowed to work. They should look to their residence permit decision to see if this is the case.

Citizens of EU Member States, Iceland, Liechtenstein, Norway or Switzerland do not require a permit for Finland. They must nonetheless register their right of residence.

Paid Annual Leave

Per the Health Insurance Act of Finland, employees can take maternity leave at 50 weekdays (at the earliest) before the estimated delivery date, and 30 weekdays before the estimated delivery date at the latest. Employees are entitled to a total of 105 weekdays of paid maternity leave. The allowance amount depends on their income. The current minimum daily rate is EUR 31.99. In addition to this, a maternity grant can be claimed in the form of either a maternity package or a tax-free cash benefit of EUR 170.

The Employment Contracts Act requires the employee to notify the employer of the need for maternity, paternity or parental leave or childcare leave at least 2 months before it starts. Employees shall be entitled to take parental leave in one or two periods, the minimum duration of which must be 12 working days.

According to the reform to family leave, employees whose expected delivery date is September 4, 2022, or later are entitled to pregnancy allowance for 40 working days, starting 30 working days before the estimated due date of the baby. After that, the mother can take parental leave up to 160 days, out of which 63 days are transferable to someone else taking care of the child. 

Working Hours

According to the Working Time Act of Finland (the Act), which entered into force on January 1, 2020, the statutory number of hours in a workday should not exceed 8 hours a day and 40 hours a week. Unless otherwise indicated by a collective agreement, regular working hours can be extended by 2 hours, up to a total of 10 hours. Weekly working hours cannot exceed 48 hours, and working hours should not exceed an average of 40 hours over a period of 4 weeks. In period-based work, the regular hours should not exceed 120 hours during a three-week period or 80 hours during a two-week period. The period-based working hours can only be used in companies, shops, institutions, and jobs listed in the Act.

Telecommuting is defined as flexible, voluntary, or paid work based on agreed rules, which can also be done outside of the actual workplace. The working time can either be entirely or partially remote. Remote work arrangements are usually agreed upon in writing. 

Maternity Leave

Per the Health Insurance Act of Finland, employees can take maternity leave at 50 weekdays (at the earliest) before the estimated delivery date, and 30 weekdays before the estimated delivery date at the latest. Employees are entitled to a total of 105 weekdays of paid maternity leave. The allowance amount depends on their income. The current minimum daily rate is EUR 31.99. In addition to this, a maternity grant can be claimed in the form of either a maternity package or a tax-free cash benefit of EUR 170.

The Employment Contracts Act requires the employee to notify the employer of the need for maternity, paternity or parental leave or childcare leave at least 2 months before it starts. Employees shall be entitled to take parental leave in one or two periods, the minimum duration of which must be 12 working days.

According to the reform to family leave, employees whose expected delivery date is September 4, 2022, or later are entitled to pregnancy allowance for 40 working days, starting 30 working days before the estimated due date of the baby. After that, the mother can take parental leave up to 160 days, out of which 63 days are transferable to someone else taking care of the child. 

Minimum Wage

Although there is no law on minimum wages in Finland, many collective agreements (which set a minimum wage) are "generally binding," which means they are adhered to in the sector covered by the agreement, irrespective of whether or not the employer is bound by that specific collective agreement. When employers pay wages, they must give the employee a statement showing the payment amount and the grounds on which the amount has been determined. The wage statement is a crucial instrument for clarifying any possible calculation errors or other mistakes that may have occurred when calculating wages.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Finland.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Finland.