Labor law
Employer’s Rights and Responsibilities under Finnish Labor Law
Under Finnish employment law, employers have both rights and legal obligations when managing their workforce. Understanding these correctly is key to avoiding disputes and maintaining compliant employment practices.
Employer’s Rights
Employers in Finland have the right to:
Choose and hire the most suitable candidate for the position
Manage and direct work (so-called managerial right)
Set working hours, work methods, and define tasks
Terminate an employee and end the employment relationship, when justified by law
This managerial right includes the ability to issue instructions on how work should be performed and interpret how legal or contractual rules apply in practice. However, such interpretations must be reasonable and based on existing laws and agreements.
Employer’s Responsibilities
Employees have the right to challenge decisions they consider unlawful or unfair. If the employer misinterprets a legal rule or contract, it can lead to:
Legal disputes
Compensation claims from the employee
Damage to employment relations or reputation
Employers are expected to act fairly, apply rules consistently, and ensure they understand the legal framework around employment contracts, termination procedures, and workplace obligations.
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Employer Obligations under Finnish Employment Law
Under the Employment Contracts Act (ECA) in Finland, employers have legally binding obligations – even if the individual employment contract does not explicitly state them. These responsibilities are essential for maintaining fair and lawful employment practices.
Key Employer Duties Include:
Paying wages: The employer’s primary obligation is to pay agreed compensation for work performed, on time and in full.
Equal treatment and non-discrimination: Employers must comply with non-discrimination laws and ensure that no employee is treated unequally based on personal characteristics.
Occupational safety: Employers are legally responsible for providing a safe and healthy working environment, in line with occupational safety regulations.
Providing employment terms in writing: The employer must inform the employee of the key terms of employment, typically in writing, including job description, pay, working hours, and notice periods.
Adhering to collective agreements: If a generally applicable collective agreement covers the sector, the employer must follow its terms regardless of whether the company is a member of an employer association.
These obligations are designed to balance the rights and duties of both the employer and the employee, promoting fair and consistent treatment across all industries.
