What should an employment contract in Finland include?
Employment contracts in Finland should contain the following key information:
- Personal information of both parties, including names, addresses, and contact information.
- A detailed description of the job, duties, and responsibilities.
- Working hours and days when the employee is expected to work.
- Salary or wage and other benefits provided by the employer.
- Employment termination policies, including notice periods and severance pays if applicable.
- Non-disclosure or confidentiality clauses to safeguard the employer’s interests.
Both parties need to carefully review the employment contract to gain an understanding of the key terms and conditions before signing it.
What types of employment contracts exist in Finland?
The following are the most common employment contracts in Finland:
- Employee contracts
There are 2 types of employee contracts in Finland:
- Permanent employment contracts: This type of contract is open-ended and doesn’t have a defined time of duration. Permanent contracts are typically used for long-term employment and can end by being terminated by one of the parties. As such, they should define the key terms of employment, like salary, benefits, working hours, paid leaves, and others.
- Fixed-term employment contracts: Unlike permanent contracts, fixed-term contracts are temporary and last for a pre-defined period of time. Fixed-term contracts are mostly used for temporary positions or seasonal work, and should also define the most important terms and conditions of the employment.
- Zero-hours employment contracts
Zero-hours contracts are the type of contract where the hours of work are not specified. Instead, the employee remains on-call and performs specific tasks when there is a demand for their services. To ensure fair employment, zero-hours employment contracts are regulated by collective agreements and may be prohibited in some circumstances.
- Project-based employment contracts
Project-based contracts are used to hire employees for the purpose of a specific project or task and have a specified time of duration. Except for the start and end dates of the project, these contracts should also define the key terms of the employment, such as project description, working hours, compensation, responsibilities and rights, and other requirements for both parties.
How to hire employees in Finland?
Before hiring employees in Finland, businesses need to complete a few legal requirements. To comply with local laws, it’s mandatory to establish a legal entity, including registering a physical address, obtaining a business identity code, and opening local bank accounts.
After a successful establishment, businesses must operate within the framework of local labour laws regarding minimum wages, working hours, tax submission, HR administration, and more.
A company that offers Employer of Record services on a global scale can make this process easier. Native Teams can support and guide you through the complex maze of global payroll, tax and risk management, and HR administration. You can rely on our teams of law and tax professionals for a seamless global expansion and full compliance with local labour laws.