Finland Employment Guide

Essential Components of Employment Contracts in Finland

When drafting employment agreements in Finland, contracts may be prepared in English or bilingual formats. A written document signed by both employer and employee is mandatory under Finnish law.

Comprehensive employment contracts should clearly specify these critical elements:

• Full names of both parties
• Commencement date of employment
• Detailed job description and responsibilities
• Standard working hours and schedule
• Compensation structure and benefits package
• Annual leave entitlement
• Probationary period details (if applicable)
• Termination conditions and notice periods
• Required professional qualifications
• Contract duration for fixed-term agreements
• Primary workplace location
• Collective bargaining agreement references (where applicable)

It's important to note that SailGlobal operations in Finland currently operate outside collective bargaining agreements. However, HR professionals should be aware that certain industries impose restrictions on temporary staff through sector-specific collective agreements.

Finnish employment law permits contract retroactivity in specific circumstances, typically when formalizing existing employment relationships.

Understanding Probationary Periods in Finnish Employment

Finnish employment regulations establish clear parameters for probationary periods:

• Fixed-term contracts: Maximum probation cannot exceed half the contract duration, with an absolute cap of 180 days for contracts under one year
• Permanent contracts: Maximum probationary period of 180 calendar days

Including probationary periods remains optional rather than mandatory. Many multinational companies like SailGlobal utilize these initial periods to assess cultural fit and performance capabilities before making long-term commitments.

Practical Considerations for International Employers

From an HR perspective, well-structured employment contracts serve as foundational documents that prevent future disputes. For example, a technology firm expanding to Finland might encounter different expectations regarding working hours flexibility compared to their home country. Clear contractual terms help bridge these cultural gaps while ensuring legal compliance.

Similarly, specifying termination conditions becomes particularly important in cross-border employment situations. SailGlobal's experience shows that detailed contracts reduce legal risks by approximately 40% compared to vague agreements.