Place of work

What it means

The place of work is the municipality, part of it or otherwise defined place where the employee is to work. It is a mandatory element of the employment contract, together with the type of work, start date and pay terms. Without it the contract is not validly concluded.

The place of work can be defined narrowly, such as a specific site, or more broadly, such as several municipalities or a whole region. For remote work, the employee's home can be agreed as the place of work, or a combination of office and home under a home office arrangement.

The place of work determines what counts as a business trip. The Travel Allowances Act uses the concept of a regular workplace, which can be agreed separately; if it is not, the place of work serves as the regular workplace. Travel beyond it gives rise to travel allowances.

How it works in practice

When drafting, consider how the employee will actually work. Too narrow a definition means any work elsewhere is a business trip with entitlement to travel allowances. Too broad a definition may disadvantage the employee and might not be upheld by a court in a dispute.

Changing the place of work is a change of employment terms that requires the employee's agreement in the form of a contract amendment. The employer cannot impose it unilaterally. If the employee refuses, this may lead to dismissal for organisational reasons.

For work abroad, in addition to the place of work, posting, work permits and the applicable social security system must be dealt with. Regular remote work from another country may trigger an obligation to pay contributions and taxes there, so rules are best agreed in advance.

What to watch out for

A mismatch between the contract and reality is a risk in an inspection. If an employee works elsewhere than stated in the contract for a long time, disputes over travel allowances, working time and health and safety may arise. The labour inspectorate and the tax authority can look at the actual situation, not just the contract wording.

When transferring staff to another municipality or relocating the company, the collective agreement and any obligations towards employee representatives must also be considered. For collective changes to the place of work, it is advisable to act well in advance and with legal support.