PEO & EOR services in Finland

PEO/EOR employment termination and notice period in Finland

As aforementioned above, in Finland, a temporary employment contract can only be terminated if previously agreed on or for misconduct from the employee side. Permanent contracts can be dismissed for gross misconduct (dishonesty, gross negligence, malicious damage, theft, serious breach of an organization’s policies, fraud, and physical violence). In this case, the work and the wages will be immediately stopped.

Another reason for dismissal is for neglect of duty (if he or she intentionally, knowingly, or deliberately fails to perform or perform work in a grossly negligent manner). In this case, the employer must inform the employee before terminating the employment contract as well as giving a warning and an opportunity to improve.

Additionally, an employee can resign, and he or she must inform the employer. The employee can also decide not to give a reason for the resignation of the contract and he or she must continue to work during the period of notice and will be paid as usual. The notice period varies if it comes from the PEO/EOR employer in Finland or the employee, and it works as follows:

When an employee resigns:

• 14 days if the employment has continued for no longer than five years,
• 1 month if the employment has continued for longer than 5 years.

When an employer dismisses the employee:

• 14 days if the employment has continued for no longer than one year,
• 1 month if the employment has continued for between 1 and 4 years,
• 2 months if the employment has continued for between 4 and 8 years,
• 4 months if the employment has continued for between 8 and 12 years,
• 6 months if the employment has continued for longer than 12 years.