LABOUR LAW.

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Presentation transcript:

LABOUR LAW

EMPLOYMENT RELATIONSHIP Working for someone else, for remuneration, under the supervision of the employer Performing the work is essential, not the outcome

Source: Kivelä-Nordell: Yrittäjän oikeutta

ESSENTIAL IN THE FINNISH LABOUR LAW Hierarchical sources of law Interpreted to the benefit of the employee Rights and obligations of the employer and the employee Job security Emplyer’s restricted right to terminate Working hours Normal hours, additional work, overtime work Annual holidays

HIERARCHICAL ORDER OF SOURCES OF LABOUR LAW Mandatory rules of law Collective agreement terms Provisions of shop rules Clauses in individual employment contracts Non-mandatory rules of law

APPLICABILITY OF COLLECTIVE AGREEMENT TES

GENERAL APPLICABILITY OF COLLECTIVE AGREEMENT TES

EMPLOYMENT CONTRACT Free form: always written information on principal terms of work Main rule: contract is permanent For a fixed term contract there must be a well-grounded reason YOUNG EMPLOYEES 15-18 years with parents' permission, under 14 with labor protection authorities' permission

EMPLOYEE'S DUTIES Performing the work with diligence, observing the instructions of the employer Observing occupational safety and health Loyalty: not exploiting employer's business secrets, no competing activities

EMPLOYER'S DUTIES Improving good relations in the company Furthering the employees' opportunities to develop themselves to advance in their career Equal treatment of the employees No less favorable employment terms applied to fixed-term and part-time employment relationships Observing occupational safety and health Written information on principal terms of work Observing the generally applicable collective agreement Paying the remuneration Offering additional work to part-time employees, providing information on vacancies Allowing the employees gather to trade union meetings

LAYING-OFF EMPLOYEES Temporary interruption of duty to work and pay for remuneration Temporary lay-off maximum 90 days, permanent one indefinitely Agreeing on a lay-off => immediately Unilateral lay-off => must be grounded by an financial and production-related reason Pre-notice 3 months in advance, lay-off notice 14 days in advance, in writing During the lay-off the employees can terminate their employment contract without a term of notice

TERMINATION OF AN EMPLOYMENT RELATIONSHIP Period of notice must be observed by both parties Prerequisites for the employer: Always a proper and weighty reason (persuasive reason) 1. Financial and production-related reason 2. Termination grounds related to the employee's person

Financial and production-related reason The work of the employee must have decreased substantially and permanently If possible, the employee must be trained for other duties in the company Re-employment within 9 months of termination if the employer needs new employees

Termination grounds related to the employee's person Employee's serious breach or neglect of obligations Significant changes in the conditions necessary for working

RESCISSION OF AN EMPLOYMENT CONTRACT Employment relationship ends immediately Both parties need an extremely weighty (persuasive) reason: A breach or neglect of duties based on the contract or the law > essential impact on the employment relationship > it becomes unreasonable to expect that the other party should continue the contractual relationship even for the period of notice The cancellation right lapses in 14 days after the reason has appeared

AUTOMATIC RESCISSION If employee has been absent from work for 1 week without giving a lawful reason => employer may consider the contract cancelled without any need to notify the employee

PROCEDURE FOR TERMINATING AN EMPLOYMENT CONTRACT BY THE EMPLOYER Must give the notice personally if possible, included an explanation on the grounds for termination Must provide the employee with an opportunity to be heard Termination without observing the period of notice: as compensation the party in breach must pay the other party an amount equivalent to the pay for the notice period Unjustified termination => employer's compensation is the pay due for 3-24 months

CERTIFICATE OF EMPLOYMENT A written certificate on duration and of nature of the work duties must be given on termination

WORKING HOURS ACT

NORMAL WORKING TIME 1. Main rule: 2. Period-based work: Maximum 8 h / day and 40 h / week 2. Period-based work: In certain branches the 8 / 40 h rules need not be observed E.g. Transport, police, customs, hospitals, hotels => Maximum: 120 h / 3 weeks or 80 h / 2 weeks

3. Nation-wide federations of employers and employees have freedom in fixing the normal working hours Normal working hours: Maximum 40 h / week in a period to be determined in the agreement The adjustment period not exceeding 52 weeks

4. Deviations by agreement: Many collective agreements provide for a shortening of 8/40 hours without loss of pay Or Based on a 1. Collective agreement or 2. Individual agreement it is possible temporarily to exceed the 8 h / day limit by 1 h (=> 9 h / day) on condition that the normal hours do not exceed the average of 40 h / week during a period of 4 weeks

OVERTIME WORK => work exceeding the normal working hours Presupposes employer’s initiative and consent of employee for every occasion Maximum number of overtime hours allowed: 138 h / 4 months 250 h / year + 80 h by agreement between the employer and the representatives of the employees

COMPENSATION OF OVERTIME WORK Daily overtime 2 first hours: 50% higher remuneration Further hours: 100% higher remuneration Weekly overtime 50% higher remuneration Period-based work 2 week period: 50% higher remuneration until 12 overtime hours 3 week period: 50% higher remuneration until 18 overtime hours

ADDITIONAL WORK =>Work exceeding the agreed working hours but not exceeding the normal working hours Presupposes employer’s initiative and agreement by the employee Compensation: normal remuneration

ANNUAL HOLIDAYS April 1 …. March 31 May 2…Sept 30 Oct 1 … April 30 Calendar year … Dec 31 Jan 1… Calendar year … Dec 31 Jan 1… Calendar ye April 1 …. March 31 May 2…Sept 30 Oct 1 … April 30 HOLIDAY CREDIT YEAR SUMMER VACATION WINTER VACATION Concepts: Holiday credit year: Vacation is earned April 1 – March 31 Holiday credit month: Every month with at least 14 days or 35 hours of work Winter vacation: The part of the holiday which exceeds 24 week days Summer vacation period: May 2 – Sept 30 Winter vacation period: Oct 1 – April Source(modified): Kivelä-Nordell: Yrittäjän oikeutta

Vacation given: During the vacation period The dates determined by the employer Employee must be heard Employee must be informed of the dates 1 month earlier, 2 weeks earlier at the latest