Statutory Notice Periods Under the Employment Contracts Act (TSL 6:3 §)
The Finnish Employment Contracts Act (Työsopimuslaki 55/2001) establishes mandatory minimum notice periods that apply automatically unless an applicable collective agreement (työehtosopimus or TES) or individual contract provides terms more favorable to the employee.
1. Notice Periods When the Employee Resigns
When an employee voluntarily terminates an open-ended (permanent) employment contract, the statutory timeline is straightforward:
- 14 calendar days: If continuous employment has lasted 5 years or less.
- 1 month: If continuous employment has lasted more than 5 years.
Employees are not required by law to provide any reason or justification for their resignation. However, voluntary resignation triggers a 45-day waiting period (karenssi) for Finnish unemployment benefits unless valid medical or contractual grounds exist.
2. Notice Periods When the Employer Terminates
Employers face escalating notice tiers designed to provide financial and transition security to staff based on their length of continuous service:
- 14 calendar days: Employment has continued for at most 1 year.
- 1 month: Employment has continued for over 1 year but at most 4 years.
- 2 months: Employment has continued for over 4 years but at most 8 years.
- 4 months: Employment has continued for over 8 years but at most 12 years.
- 6 months: Employment has continued for over 12 years.
Collective Bargaining Agreements (TES) and Industry Exceptions
In Finland, over 85% of employment relationships are governed by sector-specific collective agreements (TES). Common industry agreements (such as PAM for service/retail, Technology Industries for software/engineering, and the Municipal sector) can agree upon custom notice periods.
Always check your written contract and referenced TES. However, remember the golden rule of Finnish employment law: freedom of contract is restricted. An employer can never enforce a notice period shorter than the statutory minimum upon dismissal, nor can they hold an employee to a longer notice period than the employer is bound to give.
Garden Leave (Työntekovelvoitteesta vapauttaminen)
In executive, technical, or client-facing roles, employers frequently release departing employees from their daily work duties during notice (commonly referred to in English as "garden leave").
Under Finnish law, being placed on garden leave does not shorten your employment or alter your compensation. The employer remains legally obligated to pay your full regular salary, contractual fringe benefits (phone, company car, meal vouchers), and pension contributions until the final official day of employment.