Hire in Finland

EOR in Finland

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Finland, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Finland ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Finland and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Finland

The three parliamentary acts that largely govern employment law in the country are the Employment Contracts Act, the Working Hours Act, and the Annual Holidays Act.

Employment contracts in Finland

As you look to hire employees in Finland, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The regular work schedule is 8 hours per day and 40 hours per week, and weekly working hours can be averaged for no more than 52 weeks. Collective agreements generally provide for shorter hours of work.

Employees can take rest for at least 30 minutes if the daily work hours exceed six hours. Employers must give employees a continuous rest period of no less than 35 hours once a week. This weekly rest period should include Sunday when possible. The weekly rest period may also be scheduled over two weeks, provided that the weekly time off is no shorter than 24 hours.

Employees are also entitled to a continuous rest period of at least 11 hours between shifts and at least 9 hours for periodic work.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Finland has no statutory minimum wage, and the terms of employment typically are determined by collective bargaining agreements.
• If an employee works overtime, a pay rate increase of 50% is paid for the first two hours of work over regular daily working hours and a pay rate increase of 100% for any subsequent hours of work.
• Employees who work on a public holiday are entitled to double pay.

As your employer of record in Finland, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Finland’s labor laws do not address bonuses.

Probationary period

The maximum length of the probation is six months, but it may be extended under certain circumstances. If a fixed-term employment relationship is shorter than eight months, the trial period may not exceed 50% of the duration of the employment period.

Termination and severance

An employer must provide notice of termination in writing. The employer and the employee can agree on the length of the notice period in the employment contract, although the maximum notice allowed is six months and the notice period required of the employer cannot be shorter than that required of the employee.

When resigning from employment, the employee must observe the following periods of notice unless otherwise stipulated in a collective agreement or individual employment contract:

• 14 days if the employment has continued no longer than five years
• one month if the employment has continued for longer than five years

During a probationary period, the employer and the employee are both free to cancel the employment contract for an objective reason.

Employee benefits and paid leave in Finland

When negotiating terms of an employment contract with a candidate in Finland, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Effective September 4, 2022, mothers are entitled to 40 days of paid pregnancy leave beginning 30 weekdays before the child’s due date. Pregnancy leave must be started at least 14 weekdays before the due date.

Vacation

The Annual Holidays Act regulates Finland’s statutory annual leave. Employees accrue leave annually based on how many full vacation credit months they have worked within the holiday credit year (April 1 to March 31) and on the length of the employment relationship.

Holidays

Employees are entitled to the following paid public holidays:

• Easter Saturday
• First of May
• Midsummer’s Eve
• Independence Day
• Christmas Eve

Collective bargaining agreements typically contain provisions on further holidays with full salary entitlements, including New Year’s Day, Twelfth Day, Good Friday, Easter Monday, and Ascension Day.

Public holidays that occur on a weekend remain on that date

Sick leave

Employees are entitled to nine days of sick leave with full pay each year and with 50% pay if working for less than one month. Following this period, the Finnish National Pension Institute pays employees a daily allowance for illness at 70% of regular wages.

Health coverage

The pension system in Finland is based on two schemes:

• The national pension
• A compulsory earnings-related pension scheme.

The national pension provides a flat-rate benefit of up to 20% of average wages, with a minimum guaranteed income reduced by the amount of the earnings-related pension. The earnings-related pension is financed by contributions paid by both employers and employees.

Additional benefits

In addition to healthcare benefits, employees in Finland are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Finland, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: February 05, 2024

Employee onboarding with an employer of record in Finland

We write and validate all local employment contracts, streamlining the onboarding process for you and your Finland employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Finland, we will:

• Schedule a welcome call to discuss HR and employment information for Finland, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Finland employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Finland. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.