Probation period is a very popular option for a work start in Finland. Almost all companies offer trial periods for both employees and employers to check if the new work position, workstyle, performance, and demands are suitable for the employee, and if the employee is a good fit for the company. Those periods last from a few weeks to a few months.

According to Finnish labor law, probation periods have regulations on how and when the probation period can be set and how long the probation period can last. Employers or employees who don’t know these rules may get into legal trouble.

Definition of a Probation Period in Finland

Probation period in Finland, or koeaika in Finnish, is a time at the start of an employment relationship when the employer and the employee are testing each other out.

The employee will do the work and become familiar with the tasks of the new position, the new work environment, and familiarise themselves with the future co-workers. The employer will have the time to monitor the employee’s skills and decide whether they are a fit for the company.

Probation period in Finland is not required by law, so it is optional. The Finnish Employment Contracts Act clearly states that if the probationary period is not mentioned in the contract, then the trial period is not valid.

Lengths of Probationary Periods in Finland

Probation periods in Finland have a defined maximum limit set by the Finnish Employment Contracts Act, which is 6 months for both permanent and fixed-term contracts. Employers can’t extend the probationary period longer than this maximum.

The act also states that the probation period cannot be extended because the employee was absent due to illness, parental leave, military service, etc.

Permanent or Indefinite Contracts

Probation for a permanent or indefinite contract in Finland may be set for up to 6 months. After this period, the contract is considered permanent.

The contract must have a written probation statement at the beginning of the employment. In the probation statement, it is required by Finnish labor law that the employer also notify the employee of the provisions and requirements set during the probation period.

Fixed-Term or Definite Contracts

Probation for a definite or fixed-term work contract must be stated in the employment agreement and cannot be set for more than half the total employment period.

For example, the probation period for a 4-month fixed-term contract cannot exceed 2 months. But, it is possible for a fixed-term work contract of over 6 months to have a longer probationary period.

Legal Considerations for Probation Periods in Finland

Probation is regulated by the Finnish Employment Contracts Act, which ensures that employees are not unlawfully fired from work or discriminated against during the probationary period.

Legally, the employer or the employee can terminate the contract during the probationary period with no reason. This must not be based on age, ethnicity, religion, or any other type of discrimination.

The employer must give notice to the employee during the probationary period as per the legal notice period.

Pay and Working Conditions

An employee has the right to receive the same wages and working conditions as any other employee working under a regular employment contract performing the same work.

Employers cannot pay the employee lower wages during the probationary period than employees under a regular employment contract, or refuse the employee the benefits.

According to the latest statistics from Statistics Finland, the average gross monthly earnings in Finland are €3,800. There is no specified minimum wage, but it is set by collective agreements.

A probationary employee is entitled to the same working hours and overtime work payment. They are entitled to occupational health care and insurance from the first day of employment, as an employee under a regular employment contract.

Termination and Notice

The employer and the employee have the right to terminate the contract during the probation period without giving reasons. Although no legal notice period is required, it’s a good practice. Both the employer and the employee are recommended to give at least a few days’ notice to the other side.

Termination during the probation period must not be based on unlawful reasons such as discrimination or harassment. 

If an employee is fired unlawfully, they can challenge the employer in court.

Vacation / Holidays

Finland employees earn vacation days from the first day of employment, even during the probation period. According to the Finnish Annual Holidays Act, employees earn 2.5 days of paid leave for each full working month. However, they may not take leave until the first month of work.

Public holidays are also paid. Employees receive the same holiday pay during the probation period as regular employees. For example, all employees, including those in the probation period, are entitled to receive holiday pay on Independence Day and Midsummer Day.

Benefits of Probation Periods in Finland

Probation periods benefit both the employer and the employees in Finland. Without them, an employer can offer a long-term contract to the wrong worker, and the employee can be committed to a job they don’t like.

  • For Employees

A probation period is useful for employees as it allows them to try out the new work environment and tasks before being committed to a long-term work contract. This trial period is an opportunity for employees to show their skills.

If the new work is not as the employee had expected, they can leave easily without having to give a reason or to follow the lengthy termination procedure that is required for the termination of regular employment.

The probation period does not prevent the employee from being eligible for unemployment allowance from Kela, the Finnish Social Insurance Institution.

  • For Employers

The employer also benefits from the probation period as it allows them to test and evaluate a new employee before offering them a long-term contract.

The new hire’s work ability, attitude to work, and overall performance can be evaluated during the probation period. If there are warning signs, such as poor work performance or problems with attitude to work, the employer can terminate the employment contract without following the entire Finnish termination procedure.

Conclusion

The probation period in Finland is important for both employees and employers. It gives both sides enough time to decide whether to proceed with a long-term contract. 

The Finnish Employment Contracts Act has set many rules that regulate probation periods. The purpose of the act is to protect the rights of the employee and the employer during this period and to prevent abuse. It protects against any unethical behavior, such as unlawful and discriminatory termination. During the probation period,  all employees have equal pay and are entitled to all employment benefits from the first day of the probation period, regardless of whether it’s a fixed-term or permanent employment contract. Employers who violate the regulations can face serious legal consequences.

If you are looking to hire talent in Finland or want to build a remote team without dealing with contracts, probation rules, and local employment laws, let Remote People help you. We can support you with the legalities and HR tasks while you focus on growing your business.

Frequently Asked Questions

Probation periods are not mandatory in Finland. If they are not specified in the employment contract, then they are invalid.

Probation periods can last no more than six months for permanent and fixed-term contracts.

Yes, probationary employees in Finland earn vacation days from their first day of employment. Public holidays are also paid during probation according to the Finnish Annual Holidays Act.