Finland regularly ranks among the best countries in the world in terms of work-life balance, employee satisfaction and overall well-being. Finland's workplace culture is a role model for other countries due to its progressive labour laws, generous parental leave policies and strong emphasis on flexibility.

It is crucial for international companies wishing to recruit staff in Finland to understand and adapt to these labour standards. The failure to comply with local labour rules might result in legal concerns as well as dissatisfaction among employees with the company. In situations like this, having an Employer of Record (EoR) is extremely beneficial because it not only assures compliance but also enables businesses to make use of Finland's highly trained workforce.

This article discusses the fundamental aspects of Finnish labor law, including how these aspects contribute to the welfare of employees and how working with an Employer of Record (EoR) can make the process of acquiring and managing talent in Finland more straightforward.

A Successful model for employee well-being and driving business success

Finland's strategy prioritises the well-being of its employees and helps to ensure that employees have enough time for leisure, family and personal hobbies without compromising their productivity. Below are some key aspects of Finnish employement law.

Flexible Working Arrangements

Finland's work-life balance is primarily based on its flexible working hours. Finnish labour laws allow employees, within acceptable limits, to change their working hours to better suit their personal lives. Employees can start and finish their working day earlier or later, depending on their needs, as long as they fulfil their contractual obligations. This adaptability is invaluable for parents who can balance their schedules with childcare commitments or school hours.

Generous parental leave system

Finland's pro-labour policy also relies heavily on its generous parental leave system. Both fathers and mothers are entitled to a considerable amount of time so that families can be close to their newborns without financial strain. Fathers get almost two months, mothers get four months of paid leave, and parents can share another six months as they wish.

Vacation time

Another area in which Finland excels is the holiday scheme. In general, employers are obliged to give their employees at least five weeks' paid holiday per year, and many companies go well beyond this. This ensures that employees have sufficient time to relax, travel and recharge their batteries, which in turn leads to increased productivity and creativity.

Strong Labor Unions

The robust trade unions that exist in Finland play an important role in maintaining a healthy balance between work and private life. Collective labour agreements are the responsibility of the unions, which negotiate industry-wide standards for wages, working hours and benefits. Under these agreements, employees in each sector have the right to protective benefits.

How does an EoR simplify the hiring process in Finland ?

For companies entering the Finnish market for the first time, understanding and complying with Finland's complicated employment laws and regulations can be challenging. In this case, an Employer of Record (EoR) has the potential to become a highly valued partner. On behalf of the company, an EoR is responsible for handling the legal and administrative tasks related to employment and ensuring that the company complies with all applicable labor laws.

• No Legal Entity Required: By working with an EOR, you are not required to register a local entity in Finland and start hiring immediately.
• Compliance with Local laws: An EOR will ensure compliance with Finnish employment laws, tax regulations, and collective agreements.
• Payroll and Benefits: An EOR will manage salaries, social security contributions, and statutory benefits according to applicable Finnish regulations.
• Contracts and Documentation: An EOR will draft legally compliant employment contracts and handle documentation.
• Parental Leave and Time Off: EOR will also take care of additional statutory leave entitlements such as holidays and parental leave.

Working with an EoR allows foreign companies to focus on team management and business expansion, free from administrative complications or legal errors.

Conclusion

Finland is a compelling example of how employment regulations can both promote employee welfare and drive business growth. The focus on fairness, adaptability and family support leads to a workplace where people thrive — and where companies benefit from happy, engaged employees.

The advice for foreign companies looking to hire new employees in Finland is obvious: either adapt to the local way of life or risk falling behind. And with the help of an Employer of Record such as Swapp Agency, the transition can be deliberate and smooth, fully in line with what makes Finland a world leader in work-life balance.