Collective agreements and local bargaining

There is no general collective agreement in Finland that everyone should comply with.

Collective agreements can be

• universally binding or normally binding national agreements
• company-specific local agreements.

There are also public sector employees whose wages and other terms of employment are agreed in collective public-service collective agreements.

If a collective agreement is universally binding, all companies operating in the applicable sector must comply with its regulations even if the company is not part of an employers’ association.

If a collective agreement is normally binding, it only applies to companies that belong to an employers’ association that has signed the agreement or companies that have signed the agreement directly.

If a collective agreement is company-specific, it only applies to the company that has signed the agreement.

If there is no collective agreement binding on a company, the terms and conditions of the employment relationship are based on Finnish labour legislation.

All employers can conclude local agreements regardless of whether they comply with a universally or normally binding national collective agreement.

Employers can always agree with their personnel on

• matters listed in a national collective agreement to be agreed between the employer and the personnel or a personnel representative
• matters for which local bargaining is possible on the basis of labour legislation.

The employer and a national employee organisation or its member association can also conclude a company-specific collective agreement where all the terms of employment are agreed.

When concluding a local agreement, personnel at the workplace are represented by

1. a representative in accordance with the national collective agreement, such as a shop steward
2. an alternative representative agreed in the national collective agreement if a representative referred to in the national agreement has not been appointed
3. an elected representative, if a personnel representative or an alternative in accordance with the collective agreement has not been appointed.

Considerations for local bargaining:

• the personnel representative needs to have all the necessary details concerning the agreement
• if personnel are represented by an elected representative, the employer must promote their capacity to act in said position
• personnel must have enough time to process and consider the agreement
• employees not represented by a shop steward are also entitled to participate in the processing of the agreement
• if the employer has temporary agency workers, the local agreement may not put them at a disadvantage.

Both sides of local bargaining have a three-month period of notice on the agreement, unless a shorter period has been agreed separately.

For normally binding agreements, the employers’ association that signed the agreement supervises that its member workplaces comply with the agreement. 

Occupational safety and health authority ensures that companies that are not members of an employers' association comply with universally binding collective agreements. Occupational safety and health authority ensures also local agreements made on the basis of universally binding collective agreements.

A local agreement must always be submitted to the occupational safety and health authority within one month. Failing to do so may result in a negligence fee (EUR 1,000–10,000).

Occupational Safety and Health Administration's services and contact information

If you are not sure which collective agreement concerns your workplace and how the agreement should be applied, you can ask for advice from

• your employers’ association, if the employer is a member of one
• the national telephone service of occupational safety and health authorities.

Additional information:

• Telephone Service of the OSH authorities
• Collective agreement - Tyosuojelu.fiOpens in a new window.
• Local agreement - Tyosuojelu.fiOpens in a new window.
• Generally applicable collective agreements - Finlex.fiOpens in a new window.