Employment relationships are formed when employers and employees agree on work, for example, in a contract of employment. In employment relationships, employees work under the leadership and supervision of their employers. Their compensation for work is salary. An employment relationship can also last for a fixed term, for instance, when it covers a short project or the employee substitutes someone on parental leave.

In part-time employment, the employee’s working hours are shorter than the regular working hours of a corresponding full-time employee’s hours. An employment relationship can be part-time based on a contract or a unilateral decision by the employer. The employee is also entitled to transfer to part-time employment in certain situations, for example, if they begin a partial child-care leave.

Contract with variable working hours

An employer and an employee can agree on an employment relationship in which the working hours are not fixed but the employee will work on demand. The offered working hours can vary from zero to full-time work. This is also called a zero-hour contract. It is a common type of contract, for example, in personnel service companies. Zero-hour contracts are now allowed in all industries.

Formal employment contract

When you work as a light entrepreneur through an invoicing service, no employment relationship is formed. The companies only make a formal employment contract with you. It is actually closer to a “service contract” than an employment contract. Employment contracts cover matters that are not agreed on when you use invoicing services. For example, the users of invoicing services usually commit to paying a service fee to the invoicing service.

Collective agreement

Employees’ rights are determined in labour laws and collective agreements (TES in Finnish). These instruments determine, for instance, minimum wages, working hours, leaves, sick pays and the terms of ending a contract of employment. However, minimum wages are not specified in the labour laws but in the collective agreement of your industry, if there is one. The employers’ association and the trade union in each industry agree on the conditions of employment. That is how industry-specific collective agreements are crafted.

Local bargaining

All industries do not have industry-wide collective agreements. The terms of employment relationships can also be negotiated locally. Usually, a local agreement refers to an agreement encompassing the whole staff or a certain staff group at a certain workplace. If the industry has a collective agreement, it defines what terms can be agreed on locally. Local bargaining can be a sensible solution for both employers and employees. For employees, it is important that they are represented by a professional shop steward in local bargaining.

Fringe benefits

Employment relationships may involve fringe benefits for employees. They can include employer-provided accommodation, a company car, meals or a telephone. Fringe benefits are taxed as income.

Employee’s social security

Employers are legally obliged to take care of their employees’ social security. The costs of social security are paid by both employers and employees. Some of social security is tax-funded. Employers deduct employees’ social security contributions directly from their gross salary.

Trade union

Find out which trade union you can join. The union can advise you on such matters as employment contracts, working hours and pay.

https://tyoelamaan.fi/en/employment/
https://www.tyosuojelu.fi/web/en/employment-relationship
https://www.expat-finland.com/employment/employment_contract.html#contract