1. ANNUAL HOLIDAYS

2. PROVISIONS Annual Holidays Act (AHA) (182/2016) Collective agreements
Mandatory provisions to the benefit of the employee
Applied in employment relationships
Exceptions: domestic work, teachers, employer’s family members as only workers
Fines imposed for violation of provisions to the employer
Collective agreements
Override the act provisions
Often provisions on ”holiday bonus”

3. DETERMINING ANNUAL HOLIDAY
Holiday is earned during the holiday credit year (HCY)
=> 1.4. – 31.3.
By holiday credit months (HCM)
Every month with at least 14 days/35 hours of work
If employment relationship has lasted by the end of the holiday credit year at least a year, earned holiday
2.5 days / month
Otherwise
=> 2 days / month

4. EARNING AND TAKING ANNUAL HOLIDAYS
Calendar year
Calendar year
Calendar year
HOLIDAY CREDIT YEAR
HOLIDAY
SEASON
WINTER
VACATION
PERIOD
Lähde (soveltaen): Kivelä-Nordell: Yrittäjän oikeutta

5. Earned holiday or free time Payment
Earning rules
Earned holiday or free time
Payment
A = 14 day rule
Full HCM = minimum 14 working days
Earned holidays
Either 2,5 or
2 week days
for each full HCM
Holiday pay based on weekly wages or monthly salary, or
Holiday pay based on average daily wages
B = 35 hour rule
Full HCM= minimum 35 working hours
3. Percentual holiday pay 9% or 11,5% of the pay of the HCY
C = Excluded from the earning rules
Each calendar month working days under 14 and working hours under 35
Right for free time
2 week days / calendar month
Holiday compensation 9% or 11,5 % of the pay of the HCY
Lähde: Kivelä – Nordell. Yrittäjän oikeutta.

6. TIME OF HOLIDAY (1) Determined by the employer
Must hear the employee
The time must be told the employee 1 month, but at the latest 14 days in advance
The employer may not, without the employee’s consent, determine the holiday to begin on the employee’s free day, nor a holiday shorter than 4 days, for free days of the employee
24 days must be granted during the holiday season (summer holiday)
In seasonal work, summer holiday can be given outside the holiday season during the same calendar year, if necessary for the employer to avoid essential difficulties in business operations
Rest of the holiday (winter wacation) must be granted before the beginning of the next holiday season
Summer holiday and winter holiday must be granted uninterrupted
If necessary for carrying the work, the part of the summer holiday which exceeds 12 days, can be cut into parts if determined by the employer

7. TIME OF HOLIDAY (2) The employee and employer may agree to
Grant the annual holiday at any other time within the same calendar year or postpone it to the following year before the beginning of the holiday season
Postpone the portion of the holiday in excess of 12 days to the following year by the end of Sept
Divide into parts the amount of the holiday on excess of 12 days
On the initiative of the employee, the employer and the employee may agree on converting the amount of annual holiday in excess of 24 weekdays into shortened working hours
By written agreement

8. INCAPACITY
Employee may have the annual holiday postponed because of incapacity due to illness, accident, child birth etc.
In the beginning of the holiday
During the holiday
For days exceeding 6
The above mentioned six waiting days must not decrease the employee’s right to a four-week annual holiday
Employee must request postponing without undue delay

9. SAVING ANNUAL HOLIDAY
Must be negotiated at the latest when the employer provides the employee with an opportunity to express an opinion on the time of his holiday
Employee is entitled to carry over the portion exceeding 24 days of his annual holiday days
Employer may refuse if such accumulation causes serious inconvenience at the workplace
By mutual agreement between employer and employee, the part exceeding 18 annual holiday days can be carried over
The carried-over holiday must be granted to the employee in the calendar year(s) he decides
Must inform employer 4 months in advance

10. HOLIDAY PAY General principle: Different grounds of payment:
Employee has the right to receive at least his regular or average pay for the time of his holiday
Different grounds of payment:
Pay agreed on weekly and monthly basis
Pay based on average daily basis
Percentage based holiday pay
The calculation ground subject to the payment basis at the end of the HCY
Service charges and other regular payments are taken into account when calculating the coliday pay
Fringe benefits which are part of the salary must be paid also during the holiday
Holiday pay must be paid before the holiday

11. 1. Holiday pay based on weekly or monthly pay
Applied to employee who
Is receiving weekly or monthly pay and
Works at least 14 days per calendar month
Pay is calculated on basis of weekly or monthly pay
Holiday pay is based on the regular salary of the beginning of the holiday
How to calculate
Monthly/weekly salary is divided by the working days of the calendar month/week of the holiday period (several collective agreements define 25/6 as divisor)
The daily pay derived from this is multiplied by the working days of the holiday period

12. 2. Holiday pay based on average daily pay
Applied to employee who
Is not receiving weekly or monthly pay and
Works at least 14 days per calendar month
How to calculate:
Total pay earned during the holiday credit year
Is divided by the working days of the HCY
The average daily pay is multiplied by a multiplier stipulated by the AHA 11§

13. 3. Percentage based holiday pay
Applied to
Employee working fewer than 14 days per calendar month
How to calculate
Eployment relationship lasted at least for a year by the end of the HCY: 11,5% of the pay during the HCY
Otherwise: 9% of the pay during the HCY

14. HOLIDAY COMPENSATION
Employee not earning holiday receives 2 free days / each month of the employment relationship
Not mandatory to take the days off
The time of the days off is determined in the same way as the time of a holiday
Instead of holiday pay, holiday compensation is paid
9%/11,5% of the pay during the HCY

15. HOLIDAY COMPENSATION AT THE END OF EMPLOYMENT RELATIONSHIP
Holiday not received is compensated at the end of an employment relationship
2 / 2.5 days per HCM
Compensation is equivalent to the annual holiday pay not received
Compensation is calculated in compliance with the holiday pay provisions
Fringe benefits are not compensated at the end of an empl. relationship

16. KEEPING RECORDS
Employer must keep records of the employees’ annual holidays and carried-over holidays
Neglecting the duty is an annual holiday offence
Fines or imprisonment up to 6 months
Occupational safety and health authorities are entitled to request to see the records
Employee has the right to see the records conserning him
Records must be maintained for 2 years