Minimum requirements
The WEA requires the employment contract to be in writing and must contain, at a minimum, certain elements pertinent to the employment:
- Identification of the parties to the employment.
- The place of work.
- A description of the work or the employee’s title, post or category.
- Date of commencement.
- Estimate of the employment duration for temporary
- The basis for temporary status must appear from the temporary work contract.
- Work hours.
- Probationary period (if any).
- Total number of holiday days and holiday pay rate, the provisions concerning the fixing of dates for holidays, and any right to other paid leave from the employer
- Notice periods
- The applicable procedure if one of the parties wishes to terminate the employment relationship and if the employer wishes to dismiss an employee. The wage and wage payment procedures as well as other supplements and remunerations not included in the pay, if any. The different elements must be specified separately.
- The duration and disposition of the agreed daily and weekly working hours. In case the work is performed periodically or the daily and weekly working hours will vary, the employment contract shall stipulate or provide the basis for calculation of when the work shall be performed.
- Length of breaks.
- Arrangements concerning a special working-hour arrangement
- Arrangements for shift changes and work exceeding the agreed working hours, including payment for such work
- Applicable collective agreement.
- The identity of the hirer if the employee is hired out from a temporary-work agency
- The right to competence development that the employer may offer
- Social security benefits under the auspices of the employer as well as the names of institutions that receive payments from the employer in this regard.
Permanent vs. temporary employment
The main rule is permanent employment. If a person is employed on a temporary basis, certain requirements under the WEA must be fulfilled, for example that the employee shall work for someone who is temporarily absent or that the nature of the work justifies the use of a fixed term contract. If the requirements are not met, the legal consequence is that the employee is deemed to be permanently employed. The same applies for employees who have been engaged on a fixed term contract for more than three consecutive years in the same company.
Trial Period
An employment contract may include a “trial period” for a maximum of six months. However, for temporary appointments shorter than 12 months, the trial period may not exceed half the duration of the employment relationship.
To be valid, the trial period must be regulated in the written employment contract. During the trial period, the threshold for a legal dismissal with a notice period due to circumstances related to the employee is considered to be somewhat lower. The notice period within the trial period cannot be shorter than 14 days, and runs from day to day. The trial period may be extended if the employee is absent during parts of the trial period, and such absence is not caused by the employer, provided that the employee has been informed of this extension possibility in writing at the time of his appointment. This is normally done by including a clause in the written employment contract. Also, the employee must receive written information about the prolongation prior to the expiration of the trial period.
Notice Period
During the trial period, the notice period is only 14 days. The employment contract may provide for a longer notice period. The notice period may also be agreed upon through collective agreements. Notice of termination given during the trial period runs from the date the employee received the notice.
Notice of termination given to the employees hired on a permanent basis must be minimum one month and starts on the first day of the month following the date the employee has received the notice in writing. For employees who have been employed for at least five consecutive years with the same employer when termination is given, a mutual period of notice of at least two months applies. If an employee has been employed for at least ten consecutive years with the same employer when terminated, the mutual period of notice is at least three months. It is common for employment contracts to have a mutual notice period of three months.
If an employment contract is terminated after at least ten years of continuous employment with the same employer, the notice period is prolonged to at least four months if it takes place after the employee has reached 50 years of age, at least five months after the age of 55, and at least six months after the age of 60.
