employment
Employment contract in Finland: Template, Key Clauses and Local Law (2026)
Adira EditorialLegal AI desk6 min read
What the law requires in Finland Employment in Finland is governed mainly by the Employment Contracts Act (tyosopimuslaki, 55/2001), supported by the Working Hours Act, the Annual Holidays Act and a dense system of collective agreements. The Act sets a floor of rights that an individual contract cannot undercut, and above that floor collective agreements often set the real terms for pay, hours and benefits. A Finnish employment contract can be made orally, in writing or electronically, so writing is not strictly required for validity. However, the employer has a separate statutory duty to give the employee written information about the key terms of the employment. This written statement duty was expanded when Finland implemented the EU directive on transparent and predictable working conditions, so in practice every employee should receive the essential terms in writing. A written contract is strongly advisable and is the norm. This page is general information, not legal advice. Because a collective agreement may apply, check which one, if any, governs the role. ## The central role of collective agreements Finland uses a system of generally applicable (universally binding) collective agreements. If a collective agreement is declared generally applicable for a sector, even a non-unionised employer in that sector must apply its minimum terms, including minimum pay, working time and various allowances. There is no statutory national minimum wage in Finland; the minimum pay comes from the applicable collective agreement. This makes identifying the correct collective agreement one of the first steps in drafting a Finnish contract. ## Written terms the statement should cover The key terms that should be recorded include: - The parties, and the employee's home and the employer's place of business.
- The start date of the employment.
- For a fixed term contract, its end date or expected duration and the justified reason for it.
- Any probationary period.
- The place of work.
- The employee's main duties.
- The collective agreement that applies.
- Pay and the basis for it, and the pay period.
- Working hours.
- How annual holiday is determined.
- The notice period or the basis for determining it. ## A Finnish employment contract template you can adapt ``` EMPLOYMENT CONTRACT (TYOSOPIMUS) Employer: [company name, business ID (Y-tunnus), address] Employee: [full name, address] Date: [date] 1. POSITION AND PLACE OF WORK Title: [title]. Main duties: [description]. Place of work: [address]. 2. START DATE AND TYPE Employment begins on [date]. This is [permanent (voimassa toistaiseksi) / fixed term ending [date / event]]. [For fixed term: the justified reason is [reason], as the Act requires.] 3. PROBATION A probationary period of [up to 6] months applies [for a fixed term, no more than half its length]. During probation either party may end the contract without a notice period, but not on discriminatory or improper grounds. 4. COLLECTIVE AGREEMENT The applicable collective agreement is [name], or [none applies]. 5. WORKING HOURS Regular working hours are [hours] per week under the Working Hours Act and the collective agreement. 6. PAY Pay is [amount] per [month / hour], at least the minimum under the applicable collective agreement, paid on [date], plus [supplements]. 7. ANNUAL HOLIDAY Holiday accrues under the Annual Holidays Act: 2 days per month in the first year of employment and 2.5 days per month thereafter, with holiday pay as provided by the Act and any collective agreement. 8. NOTICE Notice periods follow the Employment Contracts Act or the applicable collective agreement, with the employer's notice increasing with length of service. 9. CONFIDENTIALITY AND NON-COMPETE The employee keeps business and trade secrets confidential. [Any non-compete only within the limits of the Act, with compensation.] 10. OTHER TERMS [Pension (TyEL), occupational health care, and any benefits.] Signed: Employer ____________ Employee ____________ Date ______
Frequently asked questions
- Does an employment contract have to be in writing in Finland?
- A contract can be oral, written or electronic, so writing is not required for validity. However, the employer has a separate duty to give the employee written information about the key terms, expanded when Finland implemented the EU transparent working conditions directive. In practice a written contract is strongly advisable and normal. This is general information, not legal advice.
- Is there a minimum wage in Finland?
- There is no statutory national minimum wage. Minimum pay is set by the collective agreement that applies to the sector, and generally applicable (universally binding) agreements must be followed even by non-unionised employers in that sector. Identifying the correct collective agreement is an early step in drafting.
- How long can a probation period be in Finland?
- A probationary period of up to six months can generally be agreed, and for a fixed term contract it may not exceed half the contract's length. During probation either party may terminate with immediate effect, but not on discriminatory or otherwise improper grounds.
- What are the notice periods in Finland?
- If nothing else is agreed, the employer's notice period under the Employment Contracts Act rises with service, from 14 days for up to one year to up to six months for more than twelve years, while the employee's notice is shorter. A collective agreement or the contract can set different periods within the law's limits.
- Are non-compete clauses enforceable in Finland?
- Only within strict limits. A post employment non-compete requires a particularly weighty reason, is limited in duration, and the employer must pay compensation for the restraint. A non-compete that does not meet these conditions is not binding.
Sources
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