What is an employment relationship?

An employment relationship is a legal relationship that arises between an employer and an employee based on an employment contract. The employment relationship defines the rights and obligations of the employer and the employee, as well as compliance with the terms of employment. The basic features and conditions of the employment relationship are laid down in Finnish labor legislation, especially in the Employment Contracts Act.

Parties of the employment relationship

There are two main parties in the employment relationship:

  • Employer: A person or organization that offers work and pays for it.
  • Employee: A person who does work on behalf of an employer and gets paid for it.

Employment contract

The employment relationship is based on an employment contract, which can be written, oral or electronic. The employment contract includes, among other things:

  1. On tasks and the content of tasks
  2. Salary and other benefits
  3. On working time and working time arrangements
  4. The duration of the employment relationship (for the time being or temporary)
  5. Other terms of employment

Terms and obligations of the employment relationship

In an employment relationship, both the employer and the employee have certain rights and obligations:

  • Obligations of the employer: The employer must pay the agreed salary, take care of the employee’s safety and health at the workplace, and comply with labor legislation and collective agreements.
  • Employee’s responsibilities: The employee must perform his work carefully and follow the employer’s instructions and regulations. The employee must also keep the employer’s trade secrets confidential.

Termination of employment

An employment relationship can end in many different ways, such as:

  • Dismissal: The employer or the employee can terminate the employment relationship. The notice period is determined by the employment contract or the law.
  • Termination: The employment relationship can be terminated immediately if the other party substantially violates the employment contract.
  • Termination of a fixed-term employment relationship: A fixed-term employment relationship ends when the agreed deadline expires.

Sources

More information about the employment relationship and related regulations can be found in the following sources: