What is an employment contract?

In the contract, you and the employer agree on what work you will do, when you will start work, and what the terms and conditions of the job are. The terms and conditions include how much you will be paid, for example. You must always have an employment contract when you do paid work.

When should you enter into an employment contract?

Always enter into an employment contract with your employer in the following situations:

  • You are starting a new job.
  • Your fixed-term employment contract is ending and you will continue working under a new contract.
  • There will be big changes in your employment relationship. For example, your job responsibilities may change.

How can you enter into an employment contract?

An employment contract can be oral or in writing.

If the contract is in writing, it can be on paper or in electronic form, such as a PDF file. Tehy recommends that employment contracts should always be in writing. This makes it easy to check what has been agreed.

Watch the video to find out what an employment contract is

What must an employment contract include?

An employment contract should include at least the following:

  • the names of the employee and employer
  • when the work will start (start date)
  • whether the contract is fixed-term or permanent
  • a fixed-term contract must state how long the job will continue and why it is fixed-term
  • probationary period, if agreed
  • where the employee will work
  • what kind of work the employee will carry out
  • which collective agreement applies to the workplace
  • how much the employee will be paid and whether they will be paid by the hour or month
  • the date on which the employee will be paid and how work experience affects their pay
  • working hours
  • how much holiday the employee will earn.

You can find more information on collective agreements on the plain English page Collective agreement.

Generally, the most important terms and conditions of employment are set out in a written employment contract. If this is not the case and your job is continuous or lasts for at least a month, the employer must give you a written statement of the terms and conditions of employment. You must receive this statement at the latest before the end of your first pay period, meaning before you receive your first pay.

Do not sign an employment contract if you do not understand or accept it

For example, the employer is not allowed to offer you a fixed-term contract if the job is actually continuous. A continuous job means that someone always has to carry out the work agreed on in the employment contract.

More information on employment contracts

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Ask Tehy about your employment contract or employment relationship

Do you have any questions about your employment contract or employment relationship? You can ask for help from the union representative at your workplace or contact Tehy.  We help all Tehy members!

A Tehy expert can check your employment contract. We can also advise you on issues such as 
pay or working hours. 

If you are a member of Tehy, please contact us through Tehy’s e-services. The e-services are not available in plain English.