Attorneys at Law Kim Åstrand
Employment Law
Employment relationships require employers to be familiar with labor law regulations and to ensure a fair and safe working environment. At the same time, restructuring and disputes are critical moments where a company’s resources and reputation may be at stake. By hiring a lawyer experienced in labor law, businesses can navigate these challenges and create sustainable solutions that benefit both employers and employees.
Key Legal Points
Employment law encompasses several critical aspects that are essential for managing the relationship between employers and employees while ensuring compliance with labor regulations. Here are some of the most important areas:
Employment Contracts and Working Conditions
Drafting and Content
An employment contract forms the foundation of the relationship between employer and employee. It regulates terms such as salary, working hours, duties, vacation, and notice periods. The contract must be clear, fair, and legally valid to minimize the risk of future conflicts. A major challenge for employers is creating contracts that comply with labor law and any collective agreements while ensuring the company’s needs and interests are protected. A lawyer can assist in drafting or reviewing the contract to ensure it meets all requirements and mitigates legal risks.
Conflicts and Breaches of Contract
Disputes can arise when one of the parties fails to fulfill the contract, such as non-payment of wages, assigning incorrect duties, or breaching confidentiality or non-compete clauses. Such conflicts can escalate quickly and damage the relationship between employer and employee. A lawyer can help interpret the contract’s content, provide guidance on how to handle the situation, and, if necessary, represent the employer in legal proceedings.
Termination of Employment Contracts
An employer may terminate a permanent employment contract only if there are valid and justified grounds.
Termination Due to Employee’s Personal Conduct
Valid and justified grounds may exist if the employee seriously breaches or neglects their obligations under the employment contract or the law. This applies particularly when the breaches are significant for the employment. Termination may also occur if the employee’s personal work capabilities have changed in such a way that they can no longer perform their duties.
Termination for Economic or Operational Reasons
An employer may also terminate an employment contract if work has significantly and permanently decreased due to economic reasons, operational reasons, or reorganization of the business.
In both cases, the employer must carefully assess and document the grounds for termination. In situations where reassignment is possible, it can be particularly challenging to determine whether termination is justified. Mishandling the situation can lead to legal disputes and claims for damages.
A lawyer can assist the employer in planning and implementing terminations in a lawful manner, reducing the risk of legal issues.
Dismissal
In cases of severe contract breaches, such as a serious violation or neglect of the employee’s obligations, dismissal may be appropriate. However, these situations are legally sensitive and require thorough investigation and documentation. A lawyer can provide guidance in evaluating whether dismissal is justified.
Collective Agreements
Collective agreements regulate many key aspects of working conditions and must be followed by employers bound by them. Understanding and correctly applying these agreements can be complex, especially in industries with detailed regulations. A lawyer can assist in interpreting agreements and ensuring the company complies with them to avoid conflicts with labor unions.
Non-Compete Agreements
A non-compete agreement is an agreement between an employer and an employee that restricts the employee’s right to take employment with a competitor or start a competing business after the employment ends. The purpose of the agreement is to protect the employer’s trade secrets and investments in personnel.
Under Finnish law, particularly strong reasons are required to enforce a non-compete agreement. The employer must also pay compensation to the employee for the restriction and the compensation must constitute a certain percentage of the employee’s salary:
- For binding periods of up to six months, the employer must pay 40% of the employee’s salary.
- For binding periods exceeding six months, the compensation must be 60% of the employee’s salary.
The maximum binding period is one year after the termination of employment.
To ensure a non-compete agreement is properly drafted and complies with current legislation, it is wise to seek legal assistance. A lawyer can also help interpret the terms of the agreement should questions or disputes arise.
Schedule a Meeting
Do you need assistance with labor law? Attorneys at Law Kim Åstrand has extensive experience in employment law and can support your company with advice and legal assistance in matters such as terminations, workplace safety, collective agreements, and much more. Contact us today to ensure your company complies with all labor law regulations and avoids future disputes.