In Finland, annual leave is governed by the Annual Holidays Act and any relevant collective agreements. Employees qualify for paid vacation based on the vacation they've earned during the previous holiday year, which runs from April 1 to March 31.
Key points:
Employees in Finland accumulate annual leave on a yearly basis, based on the number of full vacation credit months worked within the holiday credit year, which runs from April 1 to March 31. The accrual of annual leave is also determined by the duration of their employment:
Thus, the statutory annual leave can amount to either 24 or 30 days per year, depending on the employee's length of service.
In Finland, the carry-over policy for annual leave allows an employee to agree with their employer that any portion of their accrued vacation days exceeding 24 days can be taken in subsequent years. Additionally, an employer and employee can agree to carry forward a portion of vacation days exceeding 18 weekdays, or to take the portion exceeding 12 weekdays within a year following the end of the holiday season. It is important that carrying over vacation days does not cause serious harm to the production and service activities of the workplace. This policy is in accordance with the Annual Holidays Act, No. 62 of 2005, as amended.
In Finland, paid time off (PTO) is calculated using the following formula:
This ensures that supported employees receive appropriate compensation during their PTO.
Supported employees in Finland should follow these steps to request annual leave:
Yes, in Finland, time off usage is required in set increments. The employer must grant 24 weekdays of the annual holiday to be taken during the holiday season, which is between May 2 and September 30. The remaining portion of the holiday, known as the winter holiday, must be taken before the start of the following holiday season. Both the summer holiday and the winter holiday must be granted as uninterrupted periods.
In Finland, offering employees unlimited Paid Time Off (PTO) is generally not advisable due to concerns regarding the employer's lack of control over employee time management.
It is not necessary to track leave accrual on employee payslips in Finland; however, it is a common practice.