1. LABOUR LAW

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

3. Source: Kivelä-Nordell: Yrittäjän oikeutta

4. 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

5. 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

6. APPLICABILITY OF COLLECTIVE AGREEMENT
TES

7. GENERAL APPLICABILITY OF COLLECTIVE AGREEMENT
TES

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

17. 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

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

19. WORKING HOURS ACT

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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 … 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

27. 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