Signing an employment contract

An employment contract is created when the employee and the employer agree on the terms of employment, such as wages. You should always study the terms of employment carefully before signing the contract. If necessary, you can ask the union representative or Tehy to go over the contract. We are here to help our members.

An employment contract can be made orally, in writing or electronically. It can also be established silently when a fixed-term employment contract ends, but the employee continues working nonetheless.

We recommend signing a written employment contract. A written contract is clearer than an oral contract and it is easier to use as proof of what was agreed.

At least the following must be entered onto an employment contract

parties to the contract, i.e. the names of the employee and employer
employment start date
if the contract is fixed-term, the contract must contain the grounds and duration
trial period, if agreed
workplace and tasks
applicable collective agreement
wages, their basis (hourly or monthly), payday and impact of work experience on wages
working hours
determination of annual holiday.

Are you concerned about something at your new job? We are here to help our members.

We will provide advice on issues related to wages and working hours, for example. You can contact the union representative at the workplace or Tehy through e-services.

If you are not a member of Tehy, join now! You will have access to our employment advice service as a member benefit!

Join Tehy

If the employment contract is non-fixed-term or has a fixed term of more than one month, the employee must be provided a written account of the key terms of employment. The account must be provided by the end of the first pay period, at the latest. The account does not need to be provided if the terms are given in the written employment contract. Normally, the key terms of employment are agreed in the employment contract.

The employment contract is usually signed well in advance before work starts. If the employee has second thoughts and does not want to start work as agreed, the only way to be released from the contract is to comply with the period of notice.

Otherwise, the employer may be entitled to compensation from the employee for breach of contract.

The employment contract also binds the employer. The employer can also not withdraw from the contract unless they have grounds for the termination in accordance with the Employment Contracts Act and they comply with the period of notice. If there are no valid grounds, or the employer does not comply with the period of notice, the employer is obliged to compensate for the damage to the employee.

If the employment contract specifies a trial period, neither party can cancel the contract evoking the trial period before the work has started.

In business transfer scenarios employees are transferred as so-called old employees to the service of the new employer, i.e. the recipient of the business transfer.

The employment and related rights and responsibilities, including the employment contract, are automatically transferred to the new employer and new employment contracts do not need to be drafted.

However, if the new employer offers new contracts to be signed after the transfer, you should have the union representative or Tehy go over the contract. Employment advice services are your member benefit.

What does your employment contract specify as your working hours?

Are you about to sign a zero-hours contract? Will you be working general working time, period-based working time or office hours? Do you only want to work day shifts? Do you agree to additional work, overtime or being on call?

Signing an employment contract

At least the following must be entered onto an employment contract

Are you concerned about something at your new job? We are here to help our members.

Binding nature of the contract before work starts

Business transfer and employment contracts

What does your employment contract specify as your working hours?