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Hotel, restaurant and leisure industry - key provisions of the collective agreement

Updated: 26.03.2021

The collective agreement for employees in the hotel, restaurant and leisure industry sets out minimum conditions for work in the sector, including pay, working hours bonuses, working hours and holidays.

The agreement was concluded by PAM, for the employees, and by the Finnish Hospitality Association MaRa, for the employers. Around 75,000 employees in Finland work in employment covered by the collective agreement.
 

Scope
The collective agreement for employees in the hotel, restaurant and leisure industry sets out the minimum conditions to be complied with in the sector, including pay, working hours, sick pay, working hours compensation etc. The conditions are minimum conditions that employers must comply with for all their employees. The agreement applies to employees covered by the Working Hours Act. 

The collective agreement for employees in the hotel, restaurant and leisure industry typically applies to workplaces such as: restaurants, cafes, pubs, night clubs, catering companies and staff canteens, convenience and manufacturing kitchens, hotels and other accommodation  establishments, spas and wellness centres, camping and caravan sites, holiday and cottage parks, rural tourism services, service and transport stations, bowling alleys, holiday and course centres, congress centres and promotion, sales, marketing and mediation of Finnish tourism services.

List of contents

Agreement text
What is new compared to the previous collective agreement?
•    Pay
•    Working hours reduced -  annual days off system revised
•    Coping at work promoted
o    daily rest time
o    number of consecutive night shifts reduced

Other key changes and points agreed:
Sick pay due to an accident at work
Changes resulting from the new Working Hours Act
Clarification of rule for calculating annual holiday pay
Position of shop stewards improved
Trial period extended
 

Agreement texts
The collective agreement for employees in the hotel, restaurant and leisure industry is in force from 1.10.2020 to 31.3.2022

Check out the new table and hourly wages, which will take effect on 1.2.2021.

N.B.! Due to the exceptional circumstances the negotiating parties agreed temporary changes to the provisions of the collective agreement now in place. The changes apply to a shortening of the layoff notice period, notification of sick leave, the right to care for a sick child under the age of 10 and derogation from the deadlines in the Act on Co-operation within Undertakings.

Check detailed information on the temporary changes to the collective agreements for hotel, restaurant and leisure services. 

 

What is new compared to the previous collective agreement?

In brief:
Collective agreement negotiations in the sector in 2020 were held in exceptional circumstances due to the difficulties in the industry caused by the coronavirus pandemic. In spring 2020 the previously agreed collective agreement period was extended until the end of September due to coronavirus.

An agreement was reached at the end of the agreement period and the new collective agreement is in force from 1.10.2020 to 31.3.2022. The amount of pay increases was not agreed in the collective agreement negotiations. The agreement contains two separate pay review dates in February and October 2021. Separate pay negotiations will be held at those times. If no agreement is reached in the pay negotiations, the collective agreement will end earlier.

The agreement provides for reduced working hours for employees in the sector as there are more annual days off. Changes will be made to the annual days off system that will come into force on 1.1.2022. As of that date employees will be able to earn a maximum of 9 paid annual days off, which is 2 days more than previously.

Key improvements in the collective agreement include changes to employees’ coping and wellbeing. Rest time between shifts must be at least 11 hours, unless agreed otherwise with the employee. Even if agreed with the employee, rest time must still be at least 8 hours. Previously rest time between shifts had to be at least 10 hours.  In addition, the number of consecutive night shifts is limited to five instead of seven previously. If agreed with the employee, this can be agreed differently on an ad hoc basis.

The joint PAM-MaRa working group will continue to monitor the pay system and earnings trends. In addition, a working group will be set up for the agreement period to continue work on issues related to working hours.


Pay
The agreement provides for pay review dates, but not for the amount of increases.

The first pay rise date is 1.2.2021. 

The pay settlement means that minimum wages under the collective agreement will increase by 15 – 24 euros a month. Supervisors’ minimum wages will increase by 20 – 25 euros.

Bonuses or payments in the collective agreement denominated in euros or cents will not be increased.

Check out the new table and hourly wages, which will take effect on 1.2.2021.

The second pay rise date is 1.10.2021. Separate negotiations on pay rises will be held in September 2021. If no agreement is reached in the pay negotiations by 30.9.2021, the collective agreement will end on 31.10.2021.

Working hours reduced – annual days off system revised 
PAM’s objective was to remove the unpaid working hours brought in by the competitiveness pact of 2016. This was achieved. Working hours will be reduced from 1.1.2022 by revising the annual days off system.
•    The reduction of working hours will be implemented from the start of 2022 by increasing the number of annual days off. As of 1.1.2022 employees will be able to earn a maximum of 9 paid annual days off instead of 7 previously.
- The annual leave earning limit is changed to 200 hours, after 1400 hours a shorter staggering so as to produce a maximum of 9 days off.
• For part-time, the day off is given primarily as a day off, by agreeing on compensation.
•  The annual leave taken as leave is earned from the time of taxable employment.
•  106.5 system will be reset in 105 hours.
- Earnings for 90 hours of annual leave are adjusted accordingly (returned to 8 days with a pot of 6 hours)
•  Office hours will be returned to 37.5 hours.

Any amendments to the agreement on the reduction of working hours will nevertheless enter into force, even if the collective agreement expires before 1.1.2022.


Coping at work promoted
•    The collective agreement contains provisions on employees’ coping and the timing of shifts. The changes come into force from 1.1.2021.
•    Daily rest extended. Daily rest between shifts is 11 hours. Employees at individual workplaces can decide to shorten daily rest to 8 hours.

•    Reduction in consecutive night shifts. A maximum of 5 night shifts can be agreed instead of 7 previously. Individual workplaces can, however, agree this with employees on an ad hoc basis.

Other key changes and points agreed:

These textual changes come into force from 1.1.2021

Sick pay due to an accident at work
The collective agreement improves the position of the employee during the payment of sick pay. The new paragraph on sick pay introduces fairness in cases where employment has lasted less than one month and an employee goes on sick leave due to an accident at work.
 
•    If an employee has an accident at work, their right to wages during sick leave due to the accident is improved.
 •    In future sick pay is payable for a period of at least 4 weeks regardless of the length of the employee’s employment relationship.


Changes resulting from the new Working Hours Act 
The collective agreement provides for the changes brought in by the new Working Hours Act by revising the working hours reference period to 12 months.

Clarification of rule for calculating annual holiday pay 
The entry in the collective agreement on the rule for calculating holiday pay was corrected.

•    A section was added to take into account the changes brought in by the Annual Holidays Act. In future holiday pay will be calculated as a percentage, also when the employee’s working hours and form of remuneration have changed during the holiday credit year. There is no adjustment of holiday pay.

Position of shop stewards improved 
Within the collective agreement negotiations, agreement was also reached on measures related to the position of shop stewards as part of the annexes to the collective agreement.

•    A new form of co-operation - annual discussions - to improve dialogue between employees and employers. It was agreed in the collective agreement negotiations that discussions will be held annually at workplaces with staff representatives on the objectives set for the workplace negotiating system and how well the system is working.
 
•    Better time-management for shop stewards in exceptional circumstances. Agreement to be reached locally on sufficient additional release time for shop stewards if for example there are repeated co-operation negotiation procedures at the workplace. Additional release time is justified by situations where co-operation negotiations take up a significant proportion of a shop steward’s release time, thereby making it difficult for the shop steward to carry out his or her other duties.
 
•    In groups that operate nationwide, the agreement unions can, together with the local parties, agree on the appointment of a group shop steward.
 
Trial period extended
The maximum length of a trial period is extended to the 6 months permitted in law from 4 months at present. In fixed-term employment relationships shorter than 6 months, however, the trial period may be no longer than half of the length of the employment relationship.

 

Old agreements

Pay scales from 1.5.2018 and 1.5.2019 (workers)

Pay scale 1.5.2018 (supervisors)

Member benefits