Fair play at work

2

There are many good reasons for belonging to a union:

» Pay and other terms of employmentA union negotiates pay and other terms of em-ployment on your behalf. The resulting collective agreement for each industry sets out the mini-mum pay rates for the work that you do. This agreement also governs your hours of work, sick pay, bonuses for overtime and shift work, and holiday entitlement.

» Shop stewardThe union members at a workplace will elect a representative or shop steward to bargain with the employer and to serve as a channel of com-munication between the workforce and the em-ployer. The shop steward represents the employ-ees in any dispute arising between the employer and the workforce.

» Unemployment benefitThe members of a trade union usually also be-long to its unemployment fund, which pays earn-ings-related benefit to members who are out of work.

» Advice, training and social involvementTrade unions provide broad assistance in meet-ing the challenges of working life, ranging from le-gal aid to courses in foreign languages and infor-mation technology. You may find further details of these services in your union’s newsletter and on its website.

» BenefitsAs large organisations of people with a similar background, trade unions are able to negotiate and provide many other benefits for their mem-bers. Unions often offer reasonably priced holi-day accommodation and other leisure benefits, such as discounts on travel and tourism services. Many unions have also negotiated member dis-counts on regular outlays, such as petrol pump prices and insurance. Check your union website for details of these benefits.

3

Stand up for your rights You are now holding a guide to the basic ground rules of the Finnish workplace. This booklet pro-vides basic information on such matters as em-ployment contracts, sick pay, holidays and holiday bonuses, overtime and periods of notice. It is well worth browsing these pages now, and then setting the booklet aside for future reference!

It is always worthwhile finding out how the col-lective agreement for your own industry ad-dresses the problems that concern you at work. These agreements generally guarantee addi-tional benefits that go beyond your statutory rights. Even if nobody at your workplace knows about the collective agreement, you can al-ways find the Finnish language version online at www.finlex.fi/fi/viranomaiset/tyoehto. Englishtrans lations of these agreements may also be pub-lished on the websites of trade unions and employ-ers’ federations, or they may be otherwise available from these organisations on request. You may also contact SAK and consult the joint trade union ser-vice at wwww.tradeunion.fi for help in finding your own collective agreement.

You don’t have to worry about the complexities of employment regulations all by yourself. Noth-ing prevents you from asking a more experienced colleague, shop steward, labour protection dele-gate or trade union for advice. Foreign employees may also call the SAK toll-free advisory service on 0800 414 004.

4

ContentsThe employment contract is the key .............................................................................................5What on earth is a collective agreement? ..................................................................................7The trial period .........................................................................................................................................8Payment of wages ...................................................................................................................................9Benefits in kind .........................................................................................................................................9Pension security.......................................................................................................................................10Equitable treatment at work ..............................................................................................................10Holidays and holiday pay .....................................................................................................................10Rights of a part-time employee to additional work.................................................................12Sick pay ........................................................................................................................................................12Family leave ...............................................................................................................................................12Health and safety, job satisfaction and the occupational health service .....................13Industrial accident insurance ...........................................................................................................13Working time laws prevent burnout ...............................................................................................13Agency work ..............................................................................................................................................14On-the-job training .................................................................................................................................16Apprentices ...............................................................................................................................................16Laws protecting employees under 18 years of age .................................................................16Layoff ............................................................................................................................................................17Terminating employment with and without notice ................................................................17Statutory periods of notice ................................................................................................................19Certificate of employment .................................................................................................................20Employer bankruptcy ............................................................................................................................20Shop stewards and labour protection delegates .....................................................................20Trade union membership to secure your future ......................................................................21Unions affiliated to SAK .......................................................................................................................23

5

The employment contract is the key An employment contract is often the first signifi-cant personal agreement that an individual makes, and it should be drawn up with care. An employ-ment contract is an agreement between the em-ployer and the employee, whereby the employee agrees to work under the employer’s direction and supervision in return for remuneration.

Even though an oral contract is binding, it is always a good idea to set out the terms and conditions in writing, as it is easier to settle any disputes when you can show what was originally agreed. An em-ployer must anyway give the employee a written account of the terms and conditions of employ-ment when the employment contract has not been made in writing.

An employer who deliberately withholds or other-wise fails to give the employee a written account of the key terms and conditions of employment is in-fringing the Employment Contracts Act1.

1 Työsopimuslaki, no. 55 of 2001 (section 4 of chapter 2, section 11 of chapter 13)

6

The following points must be settled in an employment contract:

» The parties to the agreement (name and address of the employer and employee)

» The length of any agreed trial period

» Whether the employment is open-ended or temporary, or a trainee position, etc.

» The objective reason for the time limit in temporary employment

» The date when the work begins, and the duration of any temporary employment

» The place where the work will be done

» The type of duties for which the employee was hired

» The pay, benefits in kind and payment period

» The working hours (avoid contracts with no guaranteed hours)

» Annual holiday and holiday bonus entitlement

» Sick pay arrangements

» The period of notice of termination

» The applicable collective agreement

7

An employment contract may be temporary or open-ended. Most jobs are regular, meaning that no time limit is specified in the contract and the employment ends when a party serves notice that the arrangement will end after a certain period of notice.

A temporary employment contract may only be made for a legitimate reason, such as when serv-ing as a replacement for a regular employee on tem-porary leave of absence. Neither party may termi-nate a temporary employment contract unless the parties have explicitly agreed on such a termination procedure. Instead the employment ends without notice when the agreed working period has been completed.

The terms and conditions of employment that the employee enjoys under an employment contract may not fall below the minimum standards that are guaranteed by law or by the collective agree-ment governing work in the industry concerned. An agreement to work for less is not enforceable, and the employee remains entitled to the guaranteed minimum.

What on earth is a collective agreement? New employees should immediately check their agreed terms and conditions of employment against the collective agreement for the working sector concerned. The collective agreement sets out the basic employment standards for that sec-tor, such as the minimum rates of pay and various bonuses.

A collective agreement is a general settlement of employment conditions that is concluded for a fixed period between the trade unions and one or more employers in each business sector or indus-try. Most collective agreements in Finland are gen-erally binding for the sector or industry in question. This means that an employer must respect the min-imum employment standards that are guaranteed under the collective agreement, even when the employer does not belong to the organisation that concluded the agreement and the employee is not a union member.

8

Details of the collective agreement for your work-ing sector are available from the shop stewardat your workplace or directly from your own union.The Finnish language versions of most collective agreements are available online from the Finlexdatabase at www.finlex.fi > Viranomaiset > Työehto-sopimukset > Yleissitovat työehtosopimukset.

© Jyrki Komulainen

The Finlex database (www.finlex.fi/en) also includes English translations of key labour laws, such as the Employment Contracts Act and the Annual Hol-idays Act. Some collective agreements have also been translated into English and these translations are available from the relevant union or employers’ federation.

Trial period An employment contract may specify a trial period continuing for no more than the first six months of employment. A trial period in temporary employ-ment may continue for no longer than half of the agreed employment period. The trial period may be prolonged by one month if the employee has been absent from work for 30 days due to illness or family leave.

Although both the employer and the employ-ee may terminate an employment contract with-out notice during a trial period, the employer must have proper and objective grounds for doing so.

9

When an employee concludes several consecutive temporary employment contracts with the same employer only the first of these may include a tri-al period.

Payment of wages Employees earning a regular monthly wage are paid once a month, whereas employees on hourly rates are paid every two weeks. If the regular pay-day falls on a weekend or on some other public hol-iday when the banks are closed, then wages must be paid on the preceding ordinary weekday.

The minimum pay rates in an industry are set in the collective agreement for that industry. If the em-ployer is not bound by any collective agreement, then the employee is entitled to a reasonable wage.

The employee must be given a statement (pay slip) at the time of wage payment itemising the basic wage, separate bonuses, benefits in kind, overtime compensation, per diem allowances, other com-pensations and annual holiday pay, together with any tax, social security and pension contributions

and trade union membership subscriptions that have been deducted at source.

All outstanding wages and holiday compensation must be paid immediately when the employment ends. The employer is liable for up to six days of waiting time pay if this final settlement is delayed.

Benefits in kindBenefits in kind are employer-sponsored cash val-ue benefits that have been agreed as part of the employee’s remuneration. Such benefits typically include the use of a company car, meal allowanc-es, telephone benefits or job-related housing. They may also take the form of various goods and servic-es. The Tax Administration determines the taxable value of benefits in kind every year. This taxable val-ue is then treated as normal wage income for tax-ation purposes.

10

Pension security The purpose of a pension is to safeguard an indi-vidual’s income not only in old age, but also in the event of incapacity to work, long-term unemploy-ment or the death of a family breadwinner.

The employer must arrange private earnings-relat-ed pension insurance for every employee over 17 years of age, and must pay the associated pension contribution for all hours worked. A pension contri-bution is also deducted from the employee’s earn-ings at source.

Equitable treatment at workEmployers must treat their employees equitably in all operations, and may not discriminate between them on such grounds as sex, sexual orientation, ethnic extraction, age, state of health, trade union affiliation or opinion. Temporary and part-time em-ployees may not be treated differently from oth-er employees.

Holidays and holiday pay All employees are entitled to an annual holiday or corresponding leave of absence. The leave-earn-ing year begins on 1 April and ends on 31 March, and the basic rule is that an employee who works for at least 35 hours or on 14 days in any month will earn 2 days of annual holiday for that working month. This increases to 2.5 days of annual holi-day earned per month after the employment has continued for one full leave-earning year. Days of absence for acceptable reasons, such as ill-ness, also count when reckoning annual leave en-titlement. Holidays are normally taken during the summer and winter holiday periods that follow the end of the leave-earning year.

The employee will be paid for the annual holiday period. Hourly-paid employees who have worked for at least 35 hours per month are entitled to hol-iday pay amounting to 9 per cent of their gross earnings, increasing to 11.5 per cent after the job has continued for one year. Hourly-paid employ-ees who have worked for at least 14 days per month receive holiday pay reckoned as a specific propor-tion of their average gross earnings. Employees on

11

a regular monthly salary continue to collect this salary during the holiday period.

A separate holiday bonus – generally amounting to half of the wages for the annual holiday – may also be paid under the collective agreement.

Employees receive financial compensation for any outstanding annual holiday that cannot be taken before the employment ends, for example when a temporary summer job ends and some days of annual holiday have not been taken. This holiday compensation is reckoned in the same way as annual holiday pay.

Outstanding annual holiday pay, holiday compen-sation and holiday bonus may be claimed for up to two years after the employment ends. Holiday compensation and holiday bonus are normal tax-able income that are included when reckoning in-come tax and applying for allowances such as stu-dent grants and housing benefit.

Further details of the regulations governing annu-al holiday are available in Finnish at www.vuosilomaopas.fi.

12

Rights of a part-time employee to additional work Employers must give their current part-time em-ployees first refusal of any additional work before hiring new employees. Vacancies must also be ad-vertised in a manner that enables incumbent part-time and temporary employees to apply for these positions.

Sick pay An employee whose employment has continued for one month is legally entitled to full pay for the day of onset of illness and for the following nine ordinary weekdays. If the employment has contin-ued for less than one month, then the employee is entitled to half pay for these days. Collective agreements generally provide for more generous sick leave benefits.

Family leaveAn employee is entitled to maternity, paternity, parental and child care leave, and may also take time off work in order to care for a family mem-ber or close relative, and on pressing family-relat-ed grounds. Regular working hours may also be reduced until the end of a child’s second year of comprehensive schooling. An employee may take temporary care leave in the event of illness of a child under 10 years of age. Employees are entitled to resume their former duties on returning from family leave.

13

Health and safety, job satisfaction and the occupational health service Special attention must be paid to any work-relat-ed hazards and risks when familiarising a new em-ployee with the work. The Occupational Safety and Health Act2 requires employers to provide the guidance that is required for the work and work-ing conditions. This means familiarising the employ-ee with conditions at the workplace, the operation of machinery and other equipment, and safety reg-ulations.

The employee has a duty to comply with instruc-tions issued, and to notify the employer of poten-tial hazards immediately. The employee is also enti-tled to decline any work assignment that seriously jeopardises the health of the employee concerned or that of other employees.

The employer must arrange occupational health services for employees. New employees must un-

dergo an introductory health inspection if the work may be hazardous or harmful to health.

Industrial accident insurance Employees are compensated through the employ-er’s mandatory accident insurance scheme for acci-dents that occur during working hours or work- related travelling, and for occupational illnesses.

Working time laws prevent burnout Employees are protected by working time legisla-tion that requires employers to keep records of hours worked and compensations paid. It is impor-tant to comply with the overtime and rest period regulations of the Working Time Act3.

This law gives employees the right to a one-hour meal break in any work shift of more than six hours. The employer and employee may also

2 Työturvallisuuslaki, no. 738 of 20023 Työaikalaki, no. 605 of 1996

14

agree on a shorter break. The break is not count-ed as working time if the employee is free to leave the workplace.

Overtime is any working time that exceeds the statutory limits governing regular daily and week-ly working hours. An employee’s consent must al-ways be secured when scheduling overtime. Over-time is therefore always voluntary; the employee is entitled to refuse the employer’s offer of over-time.

A 50 per cent bonus (“time-and-a-half”) is paya-ble by law for the first two hours of daily overtime, and a 100 per cent bonus (“double time”) is paya-ble for subsequent hours in the work shift. A 50 per cent bonus is also payable for weekly over-time when working time exceeds an average of 40 hours per week. Overtime may not exceed a to-tal of 138 hours in any four-month period or 250 hours in a full year.

Collective agreements include more detailed reg-ulations on working hours in specific industries.

Agency work An agency employee is employed by an agency, but works for a client business of the agency under the direction and supervision of that client business, which also shares responsibility for the employee’s guidance and occupational safety with the agency.

Agency employers have the same legal duties as conventional employers. The employment con-tract should generally be open-ended, with tempo-rary contracts only concluded on the same objec-tive grounds as in conventional employment. The mere fact that work is arranged through an agency does not justify a time limit in the employment con-tract. The terms and conditions of agency employ-ment are governed by the collective agreement that applies in the client business unless the agency is bound by some other collective agreement.

Further details of the regulations governing agency work are available in Finnish and Swedish at www.vuokratyoopas.fi.

15

16

On-the-job training Traineeships are involved in most forms of educa-tion, and wages must be paid when the work is done as an employee.

Apprentices An apprenticeship is one way to learn a profession or occupation. Apprenticeship training is based on a special employment contract made with an em-ployer, and takes the form of on-the-job learning combined with theoretical instruction on courses. The apprentice is paid for time spent at the work-place and receives financial aid for time spent in theoretical training. The employer also receives training compensation.

Laws protecting employees under 18 years of age Legislation on young employees seeks to safeguard their mental and physical growth and development. This includes regulations governing the length and time of work shifts that may be assigned to young employees.

An employer may hire any person who is at least 15 years old and has completed compulsory edu-cation. On certain conditions an employee aged 14 years may perform light work that is not injurious to health or development and does not disrupt school attendance.

The employment contract of a person under 15 years of age may be concluded by a parent or guardian, or by the young person concerned with the permission of a parent or guardian.

17

LayoffA layoff is a temporary suspension of work and wage payment for reasons of business economy. A layoff may be time-limited or in force until further notice. The employee must be formally notified of a layoff at least 14 days before it is due to begin.

Employees are entitled to unemployment benefit during a layoff.

A temporary employee may only be laid off when serving as a substitute for an employee who could have been laid off.

Terminating employment with and without notice An employer may dismiss an employee on grounds of redundancy, but a formal codetermination pro-cedure4 must be followed when such dismissals oc-cur in enterprises with 20 employees or more.

These statutory periods apply unless some other period of notice has been specified in the individ-ual employment contract or applicable collective agreement. The period of notice may never exceed 6 months and may never be longer on resignation than on dismissal of the employee.

An employee may also be dismissed for neglect of duty, for example through persistent tardiness. The employer must give the employee a hearing before terminating the employment, and must generally also give the employee at least one warning and an opportunity to reform before doing so.

Employment may be terminated with immediate effect in cases of gross misconduct. Termination of this kind means that all work and wage earning ends immediately.

4 The rules governing this procedure are explained in detail at www.yhteistoimintaopas.fi (in Finnish only).

18

19

Statutory periods of noticeUnless otherwise agreed:

Notice periods when an employee resigns: 14 days if the employment has continued for no longer than five years, and 1 month if the employment has continued for longer than 5 years.

Notice periods when the employer dismisses the employee: 14 days if the employment has continued for no longer than one year, 1 month if the employment has continued for between 1 and 4 years, 2 months if the employment has continued for between 4 and 8 years, 4 months if the employment has continued for between 8 and 12 years, and 6 months if the employment has continued for longer than 12 years.

An employee who resigns from regular employ-ment must formally notify the employer’s repre-sentative of this resignation. There is no need to give reasons for resigning. The employee must con-tinue to work normally during the period of notice and will be paid normally for this work.

Neither the employer nor the employee may termi-nate a temporary employment contract premature-

ly by giving notice unless both parties have explic-itly agreed to such a termination procedure. The employer may terminate a temporary employment contract without notice for provable gross miscon-duct or irresponsibility on the part of the employ-ee, and the employee may similarly cancel the ar-rangement if the employer behaves in a grossly unreasonable or improper manner.

20

Certificate of employment An employee is entitled to a certificate after the employment ends, specifying the duration of em-ployment and the duties that were performed. When the employee so requests, the employer must also state the reasons why the employment ended and provide a testimonial to the employee’s working ability.

The employer’s duty to issue a certificate continues for 10 years after the employment ends.

Employer bankruptcy The pay guarantee scheme compensates employ-ees for outstanding wage claims when the employ-er is unable to pay them due to bankruptcy. The claim must be lodged within three months of the date when the wages fell due for payment. Claim forms are available at employment and economic development offices.

Shop stewards and labour protection delegates The employees at a workplace should elect a shop steward to represent them. The shop steward serves as a local negotiator, conciliator and channel of communication between the employer and the employees.

A shop steward should be familiar with current as-pects of the sector concerned, including labour leg-islation and the applicable collective agreement. It is also a good idea to consult the shop steward before signing any new or amended employment contract.

More experienced colleagues can often help in mat-ters of employment when there is no shop steward at a workplace, and even if you have not yet joined, it is always a good idea to contact the relevant trade union when problems arise at work. Regional State Administrative Agencies also provide guidance to employees.

A labour protection delegate must be elected at all workplaces with 10 employees or more.

21

Trade union activities centre on the workplace, where unions and employers agree on the ground rules of the working world. Collective bargaining is the most important reason for belonging to a trade union. The presence of unions at workplaces is mainly seen in the work of shop stewards and lo-cal union branches.

The union offers help and advice when problems arise, and is also prepared to provide legal aid for civil disputes over matters of employment.

Trade unions also administer unemployment funds for their members. These funds pay earnings-related benefit to members who have worked enough to meet the employment history condi-tion5 and have been fund members for at least six months. Members may meet the employment his-tory condition as the sum of several shorter peri-ods of work.

For reasons of convenience, most members au-thorise their employers to deduct union and un-employment fund subscription fees directly from the member’s pre-tax earnings, but they may also choose to pay these fees separately. As you pay no income tax on these fees, the amount that you ac-tually pay is substantially less than the subscription percentage.

Trade union membership to secure your future

5 The employment history condition (työssäoloehto) varies from one industry to another, but corresponds approximately to half-time working (standardly 18 hours per week for 6 months).

22

The trade union movement has achieved a great deal over the years, and it is quite clear that without trade unions we would never have secured many of the employ-ee rights that are taken for granted nowadays:

» The eight-hour working day» The five-day working week» Summer holidays» Winter holidays» Sick pay

» Job security» Maternity and parental leave» Overtime compensation» Holiday bonus» Job alternation leave

Joining a union is easy. The simplest approach in most workplaces is to approach the elected shop steward, who is always worth getting to know.

You may also complete an online membership ap-plication form on the union website or at www.tradeunion.fi

23

Which union is right for you? Here is a list of unions affiliated to the Central Organisation of Finnish Trade Unions (SAK) and their online contact details.You may also use the search engine at tradeunion.fi to locate the right union.For further assistance in finding a union call 0800 179 279.

Unions affiliated to SAK

Finnish Transport Workers’ Union AKT www.akt.fi

affiliates Finnish Cabin Crew Union SLSY www.slsy.info

Finnish Aviation Union IAUwww.iau.fi

Trade Union for the Public and Welfare Sectors JHLwww.jhl.fi

affiliates Finnish NCOs’ Unionwww.aliupseeriliitto.fi

Finnish Customs Officers’ Union www.tulliliitto.fi

Border Security Unionwww.rtu.fi

Finnish Prison Officers’ Union VVL www.vankilavirkailija.fi

Finnish Metalworkers’ Union Metalli www.metalliliitto.fi

Service Union United PAMwww.pam.fi

Finnish Paper Workers’ Union www.paperiliitto.fi

Finnish Post and Logistics Union PAU www.pau.fi

Woodworkers’ Union of Finland www.puuliitto.fi

Finnish Construction Trade Union www.rakennusliitto.fi

Railway Salaried Staff’s Union www.rvlry.fi

Finnish Food Workers’ Union SEL www.selry.fi

Finnish Elite Athletes Union SHu

Finnish Seamen’s Union SMUwww.smu.fi

Finnish Musicians’ Unionwww.muusikkojenliitto.fi

Finnish Social Democratic Journalists’ Union SSSLwww.sssl.fi

Finnish Electrical Workers’ Union www.sahkoliitto.fi

Industrial Union TEAMwww.teamliitto.fi

Theatre and Media Employees in Finland TeMewww.teme.fi

Finnish Locomotivemen’s Union www.vml.fi

General Union of Journalists YLL www.yleinenlehtimiesliitto.fi

Union of Foremen in Commerce KEY (through the Union of Service Sector Employees PaU)www.esimiesliitto.com

24

www.sak.fiwww.tradeunion.fi

Pai

noka

relia

201

7