Right to holiday and holiday bonus
The length of annual leave and a holiday bonus are not self-evident. The unions have negotiated significant annual leave-related benefits for their members that are better than the legislation in terms of collective agreements.
The Annual Holidays Act guarantees employees the right to earned leave and holiday pay. Holiday accrues for 2 or 2.5 weekdays per month, depending on the duration of the employment relationship. Of the days of holiday accrued during the holiday credit year, i.e. 1 April-31 March, summer holiday is mainly taken in May-September and winter holiday in October-April.
The right to annual leave, its length, annual leave pay and holiday bonus are agreed in more detail in the collective agreements. From the employee’s point of view, they have always been subject to better rights and conditions than those provided for by law; agreements worse than those laid down by law cannot be made. There are some differences in the agreements on holidays in the agreements of different sectors. Among other things, the length of annual leave has been agreed in several agreements so that a long-term employment relationship also entitles to a longer annual leave.
”For example, in employment relationships with the state that have lasted less than a year, holiday is earned for 2 days per month, i.e. a maximum of 22 days during the holiday credit year. Those who have served for at least one year but less than 15 years earn a maximum of 30 days and those who have served for 15 years or more earn a maximum of 38 days during the holiday credit year,” says Outi Parikka, Chief Negotiator at Loimu’s government sector.
At universities, the length and method of implementing the holiday depends on whether the employer is part of the university’s teaching and research personnel or other expert or support personnel.
”Most of Loimu’s employees are part of the teaching and research personnel, and they must agree on their working hours and how to use them for tasks according to the work plan. Other than the hours agreed in the working hours plan are the employee’s free time and can be used for holidays, for example,” says Maija Holma, Chief Negotiator at the university sector.
Therefore, it is always a good idea to check the collective agreement to which you belong.
”If you are not covered by any collective agreement, you should try to negotiate with the employer on improvements to the statutory terms and conditions to be recorded in your own employment contract,” advises Anna Kytömaa, Loimu’s lawyer.
Holiday bonus is not statutory
The payment of holiday bonus is not based on the law, but on a collective agreement, employment contract or workplace practice. The unions representing employees have negotiated holiday bonus in several collective agreements that apply to everyone covered by the agreement.
The holiday bonus is paid to the employees at the state, municipality, wellbeing services county and university in accordance with the provisions of the collective agreements, and it is 4, 5 or 6 per cent of the monthly salary. Which month’s salary is used to calculate the bonus varies slightly depending on the contract.
“The amount of the holiday bonus is also influenced by how long the employment relationship has lasted. In other words, employees or civil servants who have served for more than 15 years in the state, for example, receive more holiday bonus than those who have served for less than 15 years,” explains Outi Parikka.
At universities, teaching and research personnel are paid holiday bonus for as many days of holiday as the person in question would receive annual leave on the basis of the collective agreement.
In the private sector, holiday bonus is typically 50 per cent of the holiday pay, which means that the holiday bonus is paid in addition to the normal holiday pay. Sometimes it may also be possible to exchange the holiday bonus for days off.
“For example, in terms of the number of members of Loimu, the largest collective agreement in the private sector, the Chemical Industry Federation of Professional and Managerial Staff, states that holiday bonus is 50 per cent of the holiday pay, unless otherwise agreed locally,” says Aaro Riitakorpi, Chief Negotiator of Loimu’s private sector.
Unfortunately, not all Loimu sectors yet have a universally binding collective agreement. This is the case in the food and forest industries, for example, which employ many of Loimu’s employees. Some companies still pay holiday bonus to their employees.
Remember to check the details on holidays when you sign a new employment contract!
The holiday bonus is not paid unless it has been expressly agreed. If you are starting an employment relationship in an industry that does not have an applicable collective agreement at all, ask whether the company pays holiday bonus when negotiating the employment contract. You can try to negotiate a holiday bonus in your own employment contract.
Loimu’s advocacy team can provide support for concluding an employment contract. You can also send your employment contract to Loimu’s lawyers for review before signing it.