The update includes a new probationary period length for new employees, and a new rule regarding termination.
Finland updated its labor laws in 2017 and we recommend that you familiarize yourself with the new legislation if you have any employees in the country or if you’re thinking about hiring in Finland.
- The probationary period for new employees has been extended from 4 months to 6 months.
- Employers have the right to hire someone who has been unemployed for 12-months or more under a fixed-term contract of up to 12 months without having to present any justification.
- If a company terminates an employee for redundancy, and wishes to rehire for the position, its obligation to that employee only extends to 4 months after the dismissal date, or 6 months if the employee had been engaged for at least 12 years. Prior to the change, the standard was 9 months.
- Companies with 30 or more employees are obligated to provide training and healthcare for up to 6 months after termination for redundancy.
- The pension age depends on the year the employee was born. Employees born in 1955 can receive pensions at age 63 and 3 months. The pension age gradually increases so that employees born between 1962 and 1964 receive pensions at age 65. Beginning in 2030, the pension age will be annually adjusted to reflect the expected life span at the time.
- The pension accrual is 1.5% of annual income.
- Senior white collar employees, if not members of a relevant trade union, may elect a representative for themselves.
For more information about employment in Finland, visit our GlobalPedia resource library where you can learn about annual vacation leave, maternity/paternity leave, termination law, taxes, and more.
If you’re thinking about hiring someone in Finland, give us a call or email us. We’d love to talk to you about your plans. 888-855-5328.