Annual leave/weekday public holidays in the commercial sector

Accrual of annual leave entitlement

Accrual of annual leave entitlement will start when the employment relationship has lasted 6 months.

Annual leave is accrued for each calendar year by virtue of: the actual number of hours worked; any other time that is to be considered as working time as specified in Chapter 2, section 4 of the Working Hours Act; training required by the employer to the extent that the employer pays for loss of earnings from regular working hours; time during which shop stewards and occupational health and safety representatives are released from work; and trade union training undertaken by staff representatives in accordance with a training agreement and falling within the scope of employer subsidy insofar as the employer pays for loss of earnings from regular working hours.

The employee earns annual leave in accordance with the table below:

Number of             Number of days          Number of hours
hours accrued        of annual leave          of annual leave

200                                           1                                         7,5

400                                           2                                         15

600                                           3                                         22,5

800                                           4                                        30

1 000                                        5                                        37,5

1150                                          6                                         45

1300                                          7                                         52,5

1430                                          8                                         60

1 560                                          9                                         67,5

Granting annual leave

Annual leave will primarily be granted during the year of accrual, however, no later than by the end of April of the following year.

On the employee’s initiative, it is possible to agree in writing that leave days be granted no later than by the end of the calendar year following the year of accrual.

Annual leave must not coincide with annual holidays or other time off.

Whenever possible, annual leave should be granted in conjunction with other time off. However, leave may also be granted as single days, such as a weekday public holiday.

Employees must be consulted when granting annual leave days. Periods of three or more consecutive days of annual leave must be agreed with the employee.

Annual leave must be entered into the schedule of work shifts. No work shift may be scheduled to begin or end on a calendar day that coincides with annual leave.

Annual leave must be granted as full days off.

Absences will not alter annual leave planned in the schedule of work shifts.

Annual leave will be granted in the form of a 7.5-hour working day.

Pay for a period of annual leave

For periods of annual leave, employees will receive pay and fixed bonuses, excluding any hourly bonuses for working conditions and working time bonuses.

Employees paid a monthly salary or a proportional monthly salary receive their normal salary regardless of the length of annual leave taken.

Employees paid by the hour receive pay for the period of annual leave according to the length of annual leave taken.

Employees working on commission receive their average daily commission during periods of annual leave.

Payment of cash compensation in lieu of annual leave

Once an employee’s employment relationship has lasted 6 months, an agreement can be made in writing to pay cash compensation instead of granting annual leave (in accordance with Collective Agreement section 23). Whenever an employee earns annual leave, the employee will be paid cash compensation corresponding to the duration of the annual leave on the following pay day.

On the employee’s initiative, an agreement may also be made to pay cash compensation for an individual period of annual leave or part thereof. Such compensation will be paid on the following pay day.

The amount of cash compensation is calculated by multiplying the duration of annual leave by the hourly wage. The hourly wage includes the fixed bonuses normally included in the employee’s wage on the payment date, excluding any hourly bonuses for working conditions and working time bonuses.

The hourly wage of an employee paid a proportional monthly salary is calculated by dividing the amount corresponding to the salary for full-time work by 160.

Annual leave at the end of an employment relationship

When an employment relationship ends, cash compensation is paid in lieu of any annual leave that has not been taken.

If an agreement has been made on the employee’s initiative to take annual leave before the employee has accrued it, the employer is entitled to reclaim the compensation paid to the employee for the period of annual leave at the end of the employment relationship. Such reclamation is only possible in the event that the employment relationship ends for a reason attributable to the employee.

Mid-week public holiday system

An employer can in lieu of the annual leave system take into use the mid-week public holioday system.

The chosen system will remain in force at least one calendar year at a time, which means that the working hours system may not be changed in the middle of the year.

The weekly working hours of full-time employees is 37.5 hours. Consequently, the shortening impact of a single weekday public holiday on working hours is 7.5 hours. If using a 40-hour week, the shortening is 8 hours per mid-week public holiday.

Mid-week public holidays that shorten the working week

• Good Friday
• Easter Monday
• Ascension Day
• Midsummer’s Day

Days that shorten working hours if on Monday through Friday:

• New Yeat's Day
• Epiphany
• May Day,
• Finnish Independence Day
• Christmas Eve
• Boxing Day

In the commercial sector, working hours may be reduced for full-time employees by giving them a day off in a public holiday week or within the two preceding or two subsequent weeks. The day off may also be given during the adjustment period within which the above-mentioned day falls.

The cash compensation or working hours reduction for part-time employees will be calculated by dividing the number of weekly working hours specified in the employment contract by 5. Example: weekly working hours agreed at 30 hrs ÷ 5 = 6 hours. A reduction may be implemented by paying a cash compensation equivalent to the reduction or by giving a paid period off corresponding to the reduction during the reduction period.

Each employee is entitled to a weekday public holiday reduction, provided that their employment has lasted at least a month prior to the public holiday in question. An employee is likewise entitled to a working hours reduction for Independence Day, provided that their employment has lasted at least 6 working days prior to Independence Day.

Compensation for working on weekday public holidays and eves of such holidays

Any work performed when a shop is open after 6 pm on Epiphany Eve, Maundy Thursday, Ascension Day Eve, Midsummer’s Eve, Halloween, Christmas Eve and New Year’s Eve will be compensated with an increase in pay equivalent to a Saturday bonus.

Any work performed on Sundays and Church holidays, Independence Day (6 December) and May Day (1 May) will be compensated with a 100% increase in pay.

Other provisions relating to weekday public holidays

Work may only be assigned on Sundays or Church holidays where this was agreed in the employment contract or where the employee has specifically consented to this work.

Sunday work should be assigned impartially with particular regard to the employee’s skills, expertise and aptitude for the assignment.