Employment Contracts in Finland

A Finnish job offer usually comes with a short, businesslike contract — often only a page or two — and it is easy to assume there is nothing to scrutinise. In reality, most of your real terms live somewhere else: in the collective agreement for your sector, and in the Employment Contracts Act that sits behind every job in Finland. Knowing how those layers fit together is the difference between signing confidently and discovering later that you agreed to less than the law guarantees.

The Three Layers Behind Every Finnish Contract

In Finland, your terms of employment are built from three stacked layers, and the higher layer always wins where it is more favourable to you.

• The law. The työsopimuslaki (Employment Contracts Act) and the työaikalaki (Working Hours Act) set the non-negotiable floor — rules on contracts, probation, working time, and notice periods that apply to virtually every employee.
• The collective agreement. The työehtosopimus (TES — collective agreement) for your industry usually improves on the legal minimum, adding things like minimum pay scales, holiday bonus, and sector-specific working hours.
• Your individual contract. Your personal työsopimus (employment contract) can be better than the law and the TES, but it cannot be worse. Any clause that drops below those minimums is simply void, and the better term applies instead.

This is why reading only your contract gives you half the picture. The single most useful question to ask a new employer is: which collective agreement applies to this role? Once you know that, you know where your real minimums come from.

Written, Oral, or by Conduct

Finnish law recognises an employment contract whether it is written, oral, or even formed silently by conduct — for example, if you simply start working and getting paid. All three are equally binding, which surprises many newcomers.

That said, you should always have a written contract. If a contract is not made in writing, the employer is legally required to give you a written account of the central terms of employment instead — covering the parties, start date, job duties, pay, working hours, holiday, notice period, and the applicable collective agreement, among other things. In practice, reputable Finnish employers issue a written contract as standard, and you are entitled to one. If an employer resists putting things in writing, treat it as a warning sign.

Keep your signed copy. You will need it for several bureaucratic steps after arrival, including registering with the Digital and Population Data Services Agency (DVV) and ordering a tax card.

Permanent vs Fixed-Term Contracts

Finnish contracts come in two basic shapes, and the distinction has real consequences.

An open-ended contract (toistaiseksi voimassa oleva) — what most people call permanent — runs indefinitely until either side gives notice and ends it. This is the default and the more secure arrangement.

A fixed-term contract (määräaikainen) ends automatically on an agreed date or when an agreed task is completed. Crucially, an employer cannot simply choose to offer a fixed term: under the Employment Contracts Act, a fixed-term contract requires a justified reason connected to the nature of the work — for example, a genuine temporary need, a substitute covering someone's leave, seasonal work, or a specific project. The employee can always request a fixed term freely; it is the employer who needs grounds.

Why this matters: if an employer uses a fixed term without a proper reason, or chains together repeated fixed-term contracts to cover what is really a permanent need, the arrangement can be deemed open-ended. A fixed-term contract also generally cannot be cut short with ordinary notice partway through — both sides are committed to the end date unless the contract specifically allows termination, or you cancel for a very weighty reason. That cuts both ways: it protects you from being let go early, but it also locks you in.

For newcomers on a work-based residence permit, the contract type carries an extra weight: your permit is usually tied to employment, so the length and security of your contract can affect your immigration situation. If your job is fixed-term, plan ahead for what happens to your permit when the contract ends, and keep documentation of any renewal. It is worth confirming with the Finnish Immigration Service (Migri) how your specific permit interacts with a change of job or a gap between contracts.

The Probationary Period (Koeaika)

Most Finnish contracts open with a probationary period, the koeaika. During it, either side can end the employment immediately, with no notice period, which lets both employer and employee test whether the fit is right.

The key rules, confirmed against the Employment Contracts Act:

• The probationary period may last at most six months.
• For a fixed-term contract shorter than 12 months, probation cannot exceed half the length of the contract.
• Probation only exists if it is written into your contract. If the contract says nothing about a koeaika, there is no probation.
• A collective agreement may set a shorter maximum, so check the applicable TES.

One important limit: even during probation, an employer may not end your job on discriminatory or otherwise improper grounds. "We're in probation" is not a licence to terminate for an unlawful reason, such as your nationality, family situation, or trade-union activity.

Working Hours and Overtime

Working time in Finland is governed by the Working Hours Act, and the figures are worth knowing because some contracts quietly assume more than the law allows.

Regular working time is generally no more than eight hours a day and 40 hours a week, according to the Ministry of Economic Affairs and Employment. Many collective agreements set the standard week lower — 37.5 hours is common in office work. Employers can also average the 40-hour week over a longer reference period rather than applying it rigidly each week.

When overtime and all extra hours are added in, total working time may not exceed an average of 48 hours per week over a four-month adjustment period. A national collective agreement can extend that reference period up to 12 months. Overtime requires your consent and is paid at increased rates set by law and the collective agreement.

You are also entitled to rest. The Working Hours Act guarantees an uninterrupted daily rest of at least 11 hours in each 24-hour period, and a weekly rest of at least 35 hours, normally given on Sunday. If your contract or schedule seems to ignore these, that is a problem worth raising before you sign.

Pay and the Missing Minimum Wage

Here is a fact that catches out almost every newcomer: Finland has no statutory minimum wage. There is no single national floor set by the government.

Instead, minimum pay comes from the collective agreement for your sector. Many Finnish collective agreements are yleissitova — generally applicable — which means even an employer who does not belong to the relevant employers' federation must pay at least the agreement's minimum rates and observe its other terms. According to official sources, collective agreements cover roughly 90% of Finnish employees, so most jobs have an effective minimum even without a legislated one.

The practical takeaway: a salary figure in isolation tells you little. Look up the minimum pay scale in the applicable TES for your role and experience level, and check that your offer meets or beats it. Pay scales in many agreements rise with years of relevant experience, so if you have prior service in the field, make sure you are placed in the right band rather than at the entry level. Your contract should also state how and when you are paid — Finnish salaries are typically paid monthly into a Finnish or SEPA-area bank account, with the payday named in the contract or set by the collective agreement.

For how that gross figure turns into take-home pay, and the payslip items like pension and holiday bonus, see our guides on Finnish salaries and how employment income is taxed.

Notice Periods When Employment Ends

For an open-ended contract, ending the job means giving notice — and the statutory notice period depends on how long you have worked there. Finnish law sets different lengths for the employer and the employee.

If the employer terminates the contract, the statutory notice period is, based on tyosuojelu.fi:

• 14 days, if employment has lasted up to one year
• one month, if more than one year but at most four years
• two months, if more than four but at most eight years
• four months, if more than eight but at most 12 years
• six months, if more than 12 years

If you, the employee, resign, the statutory notice is shorter:

• 14 days, if employment has lasted up to five years
• one month, if it has lasted more than five years

These are the legal defaults. Your contract or collective agreement may set different periods — but the law caps any notice period at six months, and the notice the employee must give can never be longer than the notice the employer must give. Always check your contract and TES against these figures.

Separately, an employer ending an open-ended contract still needs proper grounds — either reasons related to your conduct or capability, or financial and production-related reasons (such as a genuine reduction in work). Notice alone is not enough; there must be a lawful basis. In serious cases of breach by either side, the contract can be cancelled with immediate effect and no notice, but that requires a very weighty reason.

Key Terms to Check Before You Sign

Before you put your name to a Finnish employment contract, run through this checklist:

• Contract type — open-ended or fixed-term, and if fixed-term, is there a stated justified reason?
• The applicable collective agreement — named in the contract, and does the offer meet its minimums?
• Probationary period — written down, and no longer than six months (or half a short fixed term)?
• Job duties and location — clear enough that you know what you are agreeing to, including any remote-work terms.
• Gross salary and pay date — and how overtime, evening, and weekend work are compensated.
• Working hours — within legal limits, with overtime rules spelled out.
• Holiday entitlement and holiday bonus (lomaraha) — usually set by the TES on top of statutory annual leave.
• Notice period — for both sides, consistent with the law and the collective agreement.

If you are unsure, Finland's trade unions are an excellent and often free resource for members; many will review a contract before you sign. The Occupational Safety and Health Administration (työsuojelu) also publishes plain-English guidance and runs an advice line for employment questions.

Where to Get Reliable Answers

Finnish employment rules are well documented in English, and you do not need to rely on second-hand summaries. The most authoritative starting points are the Occupational Safety and Health Administration at tyosuojelu.fi, which explains contracts, probation, working hours, and termination; InfoFinland, which covers the same ground in newcomer-friendly language; and the Ministry of Economic Affairs and Employment for working-time rules. For sector-specific minimums, your trade union or the relevant collective agreement is the definitive source.

When a contract clause and one of these official sources disagree, the law and the collective agreement win. That is the core principle to carry into any Finnish job: your contract sets your terms only down to the floor that the law and the TES have already built beneath you.