Every country in the world has its own rules and regulations when it comes to employment contracts. In Finland, oral contracts are technically permissible, but it’s still best practice to provide all employees with a written agreement. Employers are also legally obliged to provide certain information in writing.
In this section, we’ll cover everything you need to know about employment contracts in Finland, so you can ensure the agreements you provide to your Finnish staff are legal and compliant. We’ll discuss the mandatory terms that need to be included in contracts, as well as additional clauses you could choose to include. We’ll also talk about the conditions that need to be met for fixed-term contracts to be permissible in Finland and the situations when they can be extended.
An employment contract is an agreement between an employer and an employee that sets out the terms and conditions of employment. As in all countries, there are certain rules that apply to employment contracts in Finland, which employers should be aware of.
In Finland, oral contracts are technically valid and legally binding. However, it’s best practice to provide employees with a written contract. At a minimum, employers must provide employees with a written confirmation of the principal terms of employment, as stipulated in the Employment Contracts Act. This must be given to employees within seven days of their start date. The only exception is when the employment contract is for less than three weeks.
Employers in Finland can include a probationary period in their contracts to allow both parties to assess whether the situation is a good fit. The terms of the probationary period must be agreed between the employer and the employee, but probationary periods can’t exceed six months.
Probationary periods can be extended if the employee takes sick leave or family leave during the probationary period, with certain limitations. Collective bargaining agreements may provide for shorter probationary periods.
Certain employment policies are mandatory in Finland. For example, employers with more than 30 employees must implement a non-discrimination policy. All employers in Finland must also have an equality policy, including a pay survey with details of the employment and compensation of women and men. This policy must be available to employees and updated every second year.
Employers in Finland are free to agree on the terms of their employment contracts with employees. However, they may not be less favourable to the employee than the minimum standards set by employment legislation or any collective bargaining agreement that applies. Certain terms must be provided to employees in writing.
While oral contracts are legally binding in Finland, employers must provide employees with a written statement of their key terms of employment. The specific terms that must be included are outlined in the Employment Contracts Act. They include:
Employers can also choose to include other terms in their employment contracts. For example, you could include the following:
In Finland, permanent employment is the norm. However, fixed-term contracts can be used if the employer has a valid reason. These might include:
It is also possible to hire an employee on a fixed-term contract if they have been an unemployed jobseeker for the full previous year. In this case, the duration of the fixed-term contract can’t be longer than one year.
Unlike in some other countries, there’s no statutory maximum length for fixed-term contracts in Finland, nor is there a maximum number of times a contract can be renewed. However, employers can’t use successive fixed-term contracts if this shows that the company has a need for permanent employment.
Fixed-term contracts in Finland generally cannot be terminated by either party before their end date. However, it is possible to include a clause for early termination in the contract. Fixed-term contracts in Finland usually end either on the agreed end date or on completion of the agreed work.
Employers can subject fixed-term employees in Finland to a probationary period. However, this period may not exceed half of the total length of the contract. In any case, it can’t be longer than six months.
In Finland, there is no statutory maximum length for a fixed-term contract. In theory, employers may renew or extend fixed-term contracts indefinitely; However, repeated fixed-term contracts are not allowed if their total duration proves that the employer has a permanent need for labour.
If an employee is hired on several successive fixed-term contracts without interruption (or with only minor interruptions), they accrue benefits such as sick pay and annual leave at the same rate as permanent employees.
The standard working hours in Finland are between 37.5 and 40 hours per week, depending on the sector. The usual working week is Monday to Friday. The rules concerning working hours are set by the Working Hours Act.
Under the Working Hours Act, an employee’s regular working hours in Finland should not exceed 40 hours per week or eight hours per day. In some sectors, regular working hours can be organised as intermittent work, with a maximum of 80 hours per two-week period or 120 hours per three-week period. Collective agreements may also provide for a different maximum amount.
Any hours worked above the statutory maximum of 40 hours per week must be paid as overtime in Finland. In general, an employee’s total overtime should not exceed 138 hours over four months or 250 hours annually. Overtime is generally paid at 150% of the employee’s normal wages for the first two hours, and 200% for any additional hours. Overtime on weekends and rest days is paid at 200%.
Employees in Finland have the right to a break of at least one hour if they work for more than six hours per day. Employees can agree to take a shorter break, but it can’t be less than 30 minutes.
Employees are also entitled to a break of 11 hours between each shift, which is known as the daily rest period. Daily rest periods can be temporarily shortened to either seven hours or five hours (for a maximum of three consecutive days) for practical reasons, as long as the employee agrees. Employees must be compensated for shortened rest periods with additional time off;
In addition, employees are entitled to a weekly rest period of 35 consecutive hours, ideally including Sunday. Employees who are asked to give up their weekly free time must be compensated with either additional remuneration or time off.
Employers in Finland can choose to give their employees flexible working hours. This means that employees choose the actual hours they work, as long as they get their work done. Some employers let employees decide when they start and finish work as long as they work certain core hours in the middle of the day.
International students in Finland on a student visa have the right to work for up to 30 hours per week alongside their studies. Those conducting research or doctoral studies must have a separate residence permit for scientific research.
Many employees in Finland spend at least part of their time working remotely, either from home or another location. However, Finnish employment law doesn’t expressly recognise the concept of remote work. All employment legislation applies equally to remote and in-person workers.
In Finland, remote work is optional for both employees and employers. That means that employees can’t demand the right to work from home, and employers can’t impose it. However, employers can ask their employees to temporarily work remotely in exceptional circumstances.
In practice, the terms of remote work are generally agreed in a remote work agreement that outlines the rights and responsibilities of both parties. Many companies also have remote work policies that set clear rules and guidelines.
In response to the recent rise in remote work, many countries around the world have introduced remote work visas (or ‘digital nomad visas’). These allow remote employees to temporarily live and work in a country without being subject to the usual immigration or tax requirements.
There is currently no digital nomad visa in Finland. Remote employees are allowed to work remotely from Finland if they are there legally for another reason. However, it’s not possible to obtain a residence permit based on remote work. There is a self-employment visa that allows self-employed professionals to work remotely from Finland.
Like all countries, Finland has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Finland (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
The Employment Contracts Act (työsopimuslaki) is the main law governing an employment contract in Finland, alongside the collective agreement that covers the employee’s work.
The Act covers paid work that an employee performs personally under the employer’s direction. Working from home does not remove those protections. Other laws govern working time, annual holiday, workplace safety, equality and employee privacy.
Collective agreements add terms that affect the actual employment offer, including minimum pay, hours and allowances. Some bind an employer through membership of the employers’ association that signed them. Generally binding agreements also set minimum terms for other employers in the sector they cover.
The contract needs to work with both the law and the relevant agreement. An employee cannot simply sign away mandatory protections in exchange for different individual terms. This means an overseas contract template may need changes to reflect the pay, working conditions and rights that apply locally.
A signed written employment contract in Finland is not generally required, but employers must normally give employees their principal employment terms in writing.
An oral or electronic agreement can create a valid employment relationship. A collective agreement may impose additional writing requirements, so the relevant agreement still needs to be checked.
If the contract leaves out any required details, the employer must give the employee that information in writing without being asked. The main details, including the work, pay, hours and any fixed term, are due within seven days of starting work. The remaining information is due within one month. The statement can be electronic and spread across several documents.
Putting the terms in writing before the employee starts gives both sides a record of what they agreed. An oral contract can still be valid, but the employer must also give the employee the required employment details in writing.
An employment contract in Finland can be permanent or fixed term, with either full-time or part-time hours. Employers can agree full-time or part-time hours under either a permanent or fixed-term contract.
A permanent contract has no agreed end date. A fixed-term contract ends on an agreed date or when the specified work or event is complete. Fixed terms normally need a genuine temporary reason, although qualifying hires can last up to one year without one under the exception introduced on 1 June 2026.
Part-time employees can have permanent or fixed-term contracts. Where the need for labour genuinely varies, the parties may agree variable hours. The guaranteed minimum cannot be lower than the employer’s actual labour need. The employer must review that need at least every 12 months.
Agency work describes a different employer arrangement. The agency employs the person while the client directs their work. The employee still needs agreed terms covering both the duration of employment and their working hours.
An employment contract in Finland, or a separate written statement, must name the employer and employee and set out the main employment terms.
The documents should include these details:
A fixed-term contract needs an end date or expected end date. It must also explain the reason for the fixed term or name the legal exception being used. Variable-hours and agency contracts need extra details about the work arrangement.
The employer must provide the main details within seven days after work starts and the rest within one month. Some terms can refer to the law or collective agreement, and information already in the contract does not need a separate statement.
Employer-initiated fixed-term contracts in Finland generally need a justified reason, such as covering an absent employee, meeting seasonal demand or completing a specific project.
Since 1 June 2026, an employer can offer up to one year without that reason if the parties have not had an employment relationship during the previous five years. The exception covers one contract rather than a series of renewals. An immediate renewal needs a justified reason or another lawful exception; otherwise, employment must be permanent. An unlawfully fixed term counts as permanent.
Once employment under this exception has lasted six months, either party can end it on ordinary notice. The employer still needs lawful grounds.
Before the contract ends, the employer must explain whether continued employment is possible, in writing within one month if requested. If it plans to hire for the same or similar work when the contract ends, it must offer that work to the former employee. This duty lasts one-third of the completed employment period. The employer must send the offer promptly to the address provided by the employee, who has two weeks to respond.
Employers and employees can agree to change employment contracts in Finland, while managers can organise day-to-day work within the employee’s agreed role and contract terms.
Reassigning tasks within the employee’s role is different from changing their main duties, pay, workplace or contracted hours. A broad clause allowing other duties does not give the employer unlimited freedom to replace the agreed role.
A major change without consent generally needs lawful grounds equivalent to those required for termination. The employer must explain the grounds, changed terms and consequences of refusal. It must observe the applicable notice period and complete any required consultation. Simply announcing different terms does not make the change valid.
Changes to the main terms must normally be confirmed in writing by the date they take effect. A separate update is not required where the change follows directly from legislation or a collective agreement. The written record explains what has changed, but it does not prove that the employee agreed to a change requiring consent.
If both sides agree, an employment contract in Finland can include up to six months’ probation or koeaika, starting on the employee’s first day of work.
Probation is not automatic. The employer and employee need to agree to it before work starts. The employer can also use the probation period in the collective agreement but has to tell the employee about it when they agree the contract.
For fixed-term employment, probation, including extensions, cannot exceed half the contract’s duration or six months. A six-month contract allows no more than three months of probation.
Sickness or family leave can allow an extension of one month for each thirty calendar days of absence. The employer must tell the employee before probation expires. This can extend probation in permanent employment beyond the initial six months, while the fixed-term limits still apply.
Either party can end employment without notice during probation. The reason must relate to assessing suitability for the work and must not be discriminatory.
Employers and employees can put their remote or hybrid working arrangements in an employment contract in Finland or a separate agreement attached to it.
The agreement should identify approved work locations, office attendance, hours and availability. It can also explain how either party may propose changing or ending the arrangement. These terms help avoid disputes about whether home working is occasional or an agreed part of the role.
Equipment, expenses, information security and sickness reporting also need clear arrangements. The parties can record who provides equipment, which costs the employer pays and how managers will assess the work.
Normal working-time and safety duties continue when someone works away from the office. The employer still needs to consider workload and ergonomics. If work from another country is possible, the agreement can require prior approval. Permission to work from home domestically should not be treated as permission to work from anywhere abroad.
An employment contract in Finland needs to meet the minimum standards set by law and the relevant collective agreement. The employer and employee can also agree on bonuses, extra leave or remote working.
Mandatory rights apply even when the contract does not repeat them. Employers must also provide the required written information about the work, pay, hours and other main terms. That information can sit in the contract or a separate statement. These duties do not mean every detail is essential for an oral contract to exist.
Probation is optional, so the employer and employee need to agree to it. They can also agree on extra benefits, confidentiality and arrangements for working from home. Any bonus terms should say who qualifies, how the amount is calculated and when it will be paid.
Extra terms cannot give the employee less than the law or collective agreement requires. An employer needs a particularly strong reason linked to the role, such as protecting trade secrets, to restrict competing work after the employee leaves. The employer also has to pay the employee for that restriction; the employee’s signature alone is not enough.
Companies’ HR teams can access CXC’s local employment expertise, backed by more than 30 years of global workforce experience and support across 100+ countries.
One important consideration when hiring in Finland is the country’s collective bargaining system. Sector-specific collective agreements can set minimum pay, working hours, holiday entitlements and other employment conditions, even for employers that are not members of an employers’ association. CXC helps businesses identify the requirements relevant to their employees and account for them when preparing employment contracts.
For companies hiring in Finland for the first time or managing employees across several countries, CXC offers access to local HR expertise alongside Employer of Record, payroll and workforce management services. This gives international HR teams support when reviewing employment terms, handling contract changes or addressing questions about Finnish employment requirements.
Speak to our team about employment contract support in Finland.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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