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Negotiate a good employment contract

An employment contract can be concluded orally, in writing or electronically. Concluding the employment contract in writing is in the interests of both the employee and employer. A written employment contract makes it possible to check what has been agreed.

The Employment Contracts Act requires that essential contractual terms and conditions are determined in writing if the employment relationship is valid until further notice or for at least a month. Employment contracts for a summer job and other short-term employment relationships should also be concluded in writing.

If necessary, contact Loimu before signing the employment contract to check that the contractual terms and conditions are appropriate. We offer you personal advice in connection with signing an employment contract. When agreeing on the job, the employment contract terms and conditions should be reviewed carefully, as it is challenging to make changes afterwards.

The employment contract must state at least the following:

  • parties to the employment contract 
  • domicile or business location of the employer and employee
  • start date of the employment relationship
  • duration of a fixed-term employment contract and grounds for the fixed-term contract
  • trial period (if agreed on)
  • working location
  • main tasks of the employee
  • applied collective agreement 
  • grounds for the determination of the salary and pay period
  • regular working hours
  • determination of annual holidays
  • period of notice and grounds for its determination

The following should also be agreed on in the employment contract:

  • holiday pay/bonus – not paid without a separate agreement, usually 50% of the annual holiday pay
  • sick pay for a period longer than stated in the legislation – paid sick pay in accordance with the legislation: first day of sickness + 9 working days
  • family leave pay (e.g. maternity leave, paternity leave, temporary parental leave) – without a separate agreement, no salary is paid for the family leave period (right to receive daily allowance from Kela).
  • education
  • salary development
  • travel expense compensation (compensating work-related travel time during free time and other travel expenses)

If the field has a collective agreement, these matters are often agreed in the collective agreement. It is prohibited to agree in the employment contract on less favourable employment terms than those laid down in the legislation or collective agreement. More favourable terms and conditions can always be agreed on locally.

Any questions? Contact us!