What are the standard working hours in Finland?

Under the Finnish Working Hours Act, standard working hours are limited to 8 hours per day or 40 hours per week.

However, this Act does not apply to employees in executive or independent roles, or those whose working hours are not supervised, such as:

• Employees working outside the employer’s premises.
• Mobile workers.
• Employees with schedules set by agreements with customers.

Examples of these roles include sales representatives and real estate agents. It is important to note that working from home alone does not exclude someone from the Act, and each case is assessed individually.

Most Collective Bargaining Agreements (CBAs) in Finland set working hours at 7.5 hours per day and 37.5 hours per week.

Is overtime governed by law in Finland? If so, what are the specifics outlined by law?

Overtime in Finland is governed by law and collective agreements. It encompasses any work performed beyond the normal maximum hours set by these regulations. The following specifics are outlined by law:

• Overtime must be agreed upon each time, and employees have the right to refuse it.
• The total working hours, including overtime, cannot exceed 48 hours per week when averaged over a period of 4 months.
• Compensation for overtime is structured as follows:

- A 50% pay increase for the first 2 extra hours.

- A 100% pay increase for any additional hours beyond the first 2.

• Alternatively, employees and employers may agree to trade overtime pay for equivalent time off.

How is overtime payment calculated in Finland?

Overtime in Finland is calculated as follows:

• A 50% pay rate increase for the first 2 overtime hours worked.
• A 100% pay rate increase for any additional hours worked beyond the initial 2 hours.

There is an option to negotiate an agreement to exchange the wages owed for overtime work, either entirely or partially, for an equivalent amount of time off in lieu instead of monetary payment.

What are the eligibility rules for time off in lieu in Finland?

The eligibility rules for time off in lieu in Finland are as follows:

• The amount of time off in lieu is determined based on the increment percentages applicable to overtime pay.
• Unless otherwise agreed, any paid time off given in lieu of monetary compensation must be taken within a period of 6 months from the date on which the overtime hours were worked.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Finland?

In Finland, for payroll purposes, the employment agreement should ideally be signed before the payroll cutoff date. However, it is permissible for the agreement to be signed by the actual start date of employment at the latest. If necessary, payments can also be backdated to accommodate any delays in signing the agreement.

Can employment agreements be backdated in Finland?

Employment agreements in Finland cannot be backdated.