Collective agreement (TES)

Detailed explanation

A collective agreement is negotiated between employer organizations and trade unions to establish minimum standards for an entire industry. In Finland, most employees are covered by some form of TES, even if they're not personally union members. When a TES is declared generally binding (yleissitova), all employers in that sector must follow it, regardless of whether they belong to an employer organization.

The TES covers many aspects of employment that go beyond basic law. While Finnish employment law sets minimum standards, collective agreements often provide better conditions including higher minimum wages, more vacation days, better overtime compensation, and additional bonuses like holiday pay (lomaraha). The agreement also defines job classifications and corresponding salary levels, which helps ensure fair pay across the industry.

Collective agreements are typically negotiated every 1-3 years. When agreements expire, there may be negotiations that occasionally lead to strikes or other industrial action. As an employee, you benefit from the TES applicable to your workplace automatically.

How it affects expats

• •Automatic coverage: You're protected by the TES even if you're not a union member

• •Salary benchmarks: Check the TES for your industry to understand minimum salary levels for your position

• •Hidden benefits: Many benefits like holiday bonuses aren't required by law but come from the TES

• •Contract reference: Your employment contract should mention which TES applies

• •Language access: Most TES documents are in Finnish, but summaries may be available in English through unions

Practical examples

• •Technology sector (Teknologiateollisuus TES): Defines salary groups, overtime rates, and travel compensation

• •Commercial sector (Kaupan TES): Sets minimum wages for retail workers, Sunday bonuses, and evening work supplements

• •Construction (Rakennusalan TES): Includes specific safety requirements and travel allowances

Related terms

• •Holiday pay (Lomaraha) — A common extra payment related to annual leave, often defined by collective agreements

• •Trade union — An organization that can provide advice, legal help, and support for employees

• •Employment contract (Tyosopimus) — Your agreement with an employer covering duties, pay, working time, and key terms

• •Shop steward (Luottamusmies) — An employee representative at the workplace, often linked to collective agreements and unions