ANNUAL HOLIDAYS

PROVISIONS Annual Holidays Act (AHA) (182/2016) Collective agreements Mandatory provisions to the benefit of the employee Applied in employment relationships Exceptions: domestic work, teachers, employer’s family members as only workers Fines imposed to the employer for violation of provisions Collective agreements Override the AHA provisions Often provisions also on a holiday bonus

DETERMINING ANNUAL HOLIDAY Holiday is earned during the holiday credit year (HCY) => 1.4. – 31.3. By holiday credit months (HCM) Every month with at least 14 days/35 hours of work If employment relationship has lasted by the end of the holiday credit year at least a year, earned holiday 2.5 holiday days / month Otherwise => 2 holiday days / month

EARNING AND TAKING ANNUAL HOLIDAYS Calendar year 31.12. 1.1. Calendar year 31.12. 1.1. Calendar year 1.4. 31.3. 2.5. 30.9. 1.10. 30.4. HOLIDAY CREDIT YEAR SUMMER HOLIDAYS WINTER HOLIDAYS Lähde (soveltaen): Kivelä-Nordell: Yrittäjän oikeutta

Earned holidays or free time Payment Earning rules Earned holidays or free time Payment A = 14 day rule Full holiday credit month (HCM) = minimum 14 working days Earned holidays Either 2,5 or 2 holiday days for each full HCM Holiday pay based on weekly wages or monthly salary, or Holiday pay based on average daily wages B = 35 hour rule Full HCM= minimum 35 working hours 3. Percentual holiday pay 9% or 11,5% of the pay of the holiday credit year (HCY) C = Excluded from the earning rules Each calendar month with working days under 14 and working hours under 35 Right for free time 2 days / calendar month Holiday compensation 9% or 11,5 % of the pay of the HCY Lähde: Kivelä – Nordell. Yrittäjän oikeutta.

TIME OF HOLIDAYS (1) Determined by the employer Must hear the employee The time must be told the employee 1 month, but at the latest 14 days in advance The employer may not, without the employee’s consent, determine the holidays to begin on the employee’s free day, nor a holidays shorter than 4 days, for free days of the employee 24 days must be granted during the holiday season (summer holidays) In seasonal work, summer holiday can be given outside the holiday season during the same calendar year, if necessary for the employer to avoid essential difficulties in business operations Rest of the holidays (winter holidays) must be granted before the beginning of the next holiday season Summer holidays and winter holidays must be granted uninterrupted the employer can cut into parts the part of the summer holidays which exceeds 12 days if it is necessary for securing the continuous operation of the enterprise

TIME OF HOLIDAYS (2) The employee and employer may agree to Grant the annual holiday at any other time within the same calendar year or postpone it to the following year before the beginning of the holidays season Postpone the portion of the holidays in excess of 12 days to the following year by the end of Sept Divide into parts the amount of the holiday in excess of 12 days On the initiative of the employee, the employer and the employee may agree on converting the amount of annual holidays in excess of 24 weekdays into shortened working hours

INCAPACITY Employee may have the annual holidays postponed because of incapacity due to illness, accident, child birth etc. In the beginning of the holiday During the holiday For days exceeding 6 The above mentioned six waiting days must not decrease the employee’s right to a four-week annual holiday Employee must request postponing without undue delay

SAVING ANNUAL HOLIDAYS Must be negotiated at the latest when the employer provides the employee with an opportunity to express an opinion on the time of his holidays Employee is entitled to carry over the portion exceeding 24 days of his annual holiday days Employer may refuse if such accumulation causes serious inconvenience at the workplace By mutual agreement between employer and employee, the part exceeding 18 annual holiday days can be carried over The carried-over holidays must be granted to the employee in the calendar year(s) he decides Must inform employer 4 months in advance

HOLIDAY PAY General principle: Different grounds of payment: Employee has the right to receive at least his regular or average pay for the time of his holidays Different grounds of payment: Pay agreed on weekly and monthly basis Pay based on average daily basis Percentage based holiday pay The calculation ground subject to the payment basis at the end of the HCY Regular additional pay incrediments are taken into account when calculating the coliday pay Fringe benefits which are part of the salary must be paid also during the holiday Holiday pay must be paid before the holidays

1. HOLIDAY PAY BASED ON WEEKLY OR MONTHLY PAY Applied to employee who Is receiving weekly or monthly pay and Works at least 14 days per calendar month Pay is calculated on basis of weekly or monthly pay Holiday pay is based on the regular salary of the beginning of the holidays How to calculate Monthly/weekly salary is divided by the working days of the calendar month/week of the holiday period (several collective agreements define 25/6 as divisor) The daily pay derived from this is multiplied by the working days of the holiday period

2. HOLIDAY PAY BASED ON AVERAGE DAILY PAY Applied to employee who Is not receiving weekly or monthly pay and Works at least 14 days per calendar month How to calculate: Total pay earned during the holiday credit year Is divided by the working days of the HCY The average daily pay is multiplied by a coefficient stipulated by the AHA 11§

3. PERCENTAGE BASED HOLIDAY PAY Applied to Employee working fewer than 14 days per calendar month How to calculate Eployment relationship lasted at least for a year by the end of the HCY: 11,5% of the pay during the HCY Otherwise: 9% of the pay during the HCY

4. HOLIDAY COMPENSATION Employee not earning holidays is granted 2 days off / each month of the employment relationship Not mandatory to take the days off The time of the days off is determined in the same way as the time of a holiday Instead of holiday pay, holiday compensation is paid 9%/11,5% of the pay during the HCY

Holiday compensation at the end of employment relationship Holiday not received is compensated at the end of an employment relationship 2 / 2.5 days per HCM Compensation is equivalent to the annual holiday pay not received Compensation is calculated in compliance with the holiday pay provisions Fringe benefits are not compensated at the end of an empl. relationship

KEEPING RECORDS Employer must keep records of the employees’ annual holidays and carried-over holidays Neglecting the duty is an annual holiday offence Fines or imprisonment up to 6 months Occupational safety and health authorities are entitled to request to see the records Employee has the right to see the records conserning him Records must be maintained for 2 years