A typical reason for a fixed-term position is substituting a permanent employee, for example during their family or study leave or sick leave. Legal grounds may also be based on the nature of the work, such as project work or seasonal work. In principle, a purchased service agreement of an employer signed after a tendering process, for example, does not constitute as grounds for a fixed-term employment agreement.
It should also be kept in mind that gig work carried out on the basis of a framework agreement forms a fixed-term employment agreement that requires a legal basis.
Even if a legal basis has been written into each employment agreement, a continuous need for labour may lead to the agreement being viewed as an agreement valid until further notice. In other words, unfounded back-to-back fixed-term contracts are not allowed.
The law does not determine how many fixed-term contracts can be entered into in a row, which means that this is assessed case by case. The longer these back-to-back agreements have continued, the more likely it is that the employment relationship should be reviewed as permanent. Typically, this can be the case when the same person substitutes for several different people over the years based on their periods of absence.
Is a fixed-term contract binding?
We are often asked whether it is possible to give notice in a fixed-term position, e.g. when receiving a permanent position elsewhere. It is important to remember that a fixed-term contract is also binding to the employee until the end date of the employment relationship.
In practice, however, it is often possible to negotiate with the employer on ending the employment earlier, and employers usually understand why an employee would prefer to move to a permanent position. During the validity of a fixed-term contract, it is therefore possible to agree in mutual understanding that the employment relationship will end before the date previously agreed, e.g. at the end of the current rota.
If the employee wishes to make sure that giving their notice is possible, a termination clause can be included in the employment agreement, which also allows terminating a fixed-term contract. An employee can request this to be written into the employment agreement before signing it. The collective agreement can also have clauses regarding the termination of a fixed-term contract.
Does my fixed-term contract have to be renewed if I’m about to start family leave?
If the same job is still available at the end of the fixed-term employment agreement, the employer cannot decide not to renew the temporary employee’s employment agreement based on them starting family leave. This is decreed in the Equality Act.
In practice, this means that if the new fixed-term contract offered overlaps the family leave, the employer must hire a substitute for the employee on family leave during their absence, for example.
However, the employee should express their interest in continuing the work, preferably in writing, and apply for open positions if necessary.
If the contract is not continued, this could lead to presumption of discrimination, which the employer must be able to repeal.
What to do if you suspect the legality of a fixed-term contract
First, check the grounds for your fixed-term employment contract in your own employment agreement. If there is any ambiguity, contact your own supervisor or the elected staff representative. An employer must be able to provide proof for the grounds of each fixed-term employment contract, also after the contract has ended.
If you have several consecutive fixed-term contracts, list them, their start and end dates and the grounds for fixed-term positions together in a file.
Your case could constitute as permanent need for labour, which would require the contract to be viewed as permanent. Contact your supervisor or the elected staff representative.
If any discrimination is suspected, check Tehy’s Working life guidebook for further instructions.
Will fixed-term contracts become more common in future?
According to Statistics Finland, 16.7% of all employees were in fixed-term positions in 2023. Fixed-term contracts were even more common in the public sector, where 24.8% of employees were in fixed-term positions.
The Finnish government programme states that contracts could be amended so that in future, an employment contract could be concluded for a fixed term of one year without a special reason. From the employee’s perspective, a fixed-term employment contract of one year is basically a prolonged ‘trial period’. When a fixed-term employment contract ends, the employer does not primarily have an obligation to continue it.
It is likely that more extensive use of fixed-term employment contracts will increase family leave and pregnancy discrimination even further.
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