Human Resources Policy

1. Purpose

The purpose of the global Human Resources Policy (the “Policy”) is to define Wärtsilä’s mandatory requirements for managing employment, people practices, and working conditions across all operations. It ensures global consistency, compliance with applicable laws, and alignment with Wärtsilä’s Code of Conduct.

2. Scope

The Policy applies to Wärtsilä Corporation and all its subsidiaries worldwide (“Wärtsilä”). All employees, line managers, leaders, and HR personnel must comply with the Policy and all relevant legislation and collective agreements. Where local requirements differ, the stricter requirement applies, unless prohibited by law.

3. Commitments to International Agreements and Human Rights

Wärtsilä respects the International Bill of Human Rights, the ILO Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights. Wärtsilä employees must treat all individuals with dignity and respect and act in accordance with Wärtsilä’s Code of Conduct. 

Requirements
Discrimination, harassment, inappropriate treatment, violence, and retaliation are strictly prohibited.
Forced labour, child labour, and any form of exploitation are strictly forbidden.

Any suspected misconduct or human rights concern must be reported through Wärtsilä’s internal reporting channels. 

4. Terms of Fair Employment and Working Conditions

Wärtsilä complies with all applicable laws and agreements governing employment, working time, data privacy, wages and hours, and employee rights.

Employment Practices
Permanent, fixed‑term, and part‑time employees must receive fair treatment and benefits as required by law and/or collective agreements.
Employment must not be influenced by personal relationships or conflicts of interest.
Employee data must be processed lawfully and confidentially.

Working Conditions
Employees must comply with all workplace policies, frameworks, guidelines, and applicable legal requirements.
Employees must be accountable for their professional conduct and protect Wärtsilä’s legitimate interests.

5. Freedom of Association, Collective Bargaining and Personnel Representation

Wärtsilä respects employees’ rights to form or join associations and to engage in collective bargaining, as recognised by ILO conventions and applicable law. 
Where local law restricts these rights, Wärtsilä provides alternative channels for employee engagement and expression. Dialogue with personnel representatives must remain open, transparent, and constructive in accordance with applicable law, collective agreements, and established practices. Employees and their representatives are informed and consulted, as required by law or agreement, on matters affecting employment, working conditions, organisational changes, and other issues within the scope of consultation obligations.
For matters with significant business or social impact—such as redundancies, transfers of operations, or structural changes—Wärtsilä complies with applicable information and consultation requirements in a timely manner. Where applicable, employee representatives, local bodies, and/or the European Works Council are consulted before decisions are made or, if not feasible, as soon as reasonably practicable thereafter.
Wärtsilä promotes regular internal communication and employee engagement through appropriate channels, including performance and development discussions, local forums, business updates, and continuous improvement initiatives.

6. Diversity and Inclusion

Wärtsilä is committed to fostering a diverse, inclusive, and ethical workplace. All employees must contribute to an environment where diversity is respected and valued. 
Employees must not engage in:
discrimination;
harassment;
exclusionary behaviour; or
conduct that undermines inclusion.

Leaders must ensure equal opportunities across all levels and functions.

7. Health, Wellbeing and Safety

Wärtsilä is committed to providing a safe, healthy, and supportive working environment and to preventing injuries, incidents, and work‑related ill‑health.

Requirements
Employees must follow safety instructions, identify and report hazards, and stop work in unsafe situations without fear of retaliation.
Leaders must implement safety responsibilities and ensure compliance with applicable requirements and laws without fear of retaliation.
Wellbeing initiatives must support sustainable performance, mental and physical health, and work‑life balance.

Employee participation in occupational health and safety matters is supported in accordance with local requirements and established practices.

8. Talent Management, Learning and Development

Wärtsilä manages talent consistently and equitably across all regions. Talent practices align individual development with business needs and strategic objectives. 

Responsibilities
Employees are responsible for their own learning, capability development, and career progression.
Leaders must ensure equal access to development opportunities and promote continuous learning.
Wärtsilä applies the 70–20–10 learning principle and provides appropriate learning tools and resources.

9. Resourcing and Recruitment

Wärtsilä conducts recruitment in a fair, transparent, and consistent manner across all regions while complying with applicable laws and Wärtsilä’s Code of Conduct. 

10. Leadership

Wärtsilä’s leadership is guided by the Wärtsilä Leadership Model. Leaders must act as role models, uphold the Policy, support team performance, and ensure compliance with all HR and legal requirements.

11. Performance Management

Wärtsilä’s performance management framework connects strategy with team and individual performance and supports development and accountability. 

Requirements
Employees and leaders must participate in mandatory performance and development dialogues.
Set goals must be specific, measurable, achievable, relevant, time-based, and aligned with Wärtsilä’s business objectives.
Leaders must apply performance processes consistently and fairly.

12. Reward and Recognition

Wärtsilä’s Total Rewards Philosophy integrates compensation, benefits, development opportunities, recognition, and work‑life balance. Reward practices follow the Pay for Performance principle and align with market conditions and legislation.
Wärtsilä is committed to fair and equitable remuneration. Employees performing the same or equivalent work are compensated without unlawful discrimination, and any differences in pay are based on objective factors such as role requirements, competence, experience, and performance.
Salaries are reviewed regularly in line with company processes and applicable review frameworks. Variable pay, bonuses, and other incentives are applied in accordance with company rules, defined criteria, and relevant agreements.
Benefits are provided in accordance with local legislation, collective agreements, company guidelines, and prevailing market practices.

13. Global Mobility

Wärtsilä manages international assignments through transparent and consistent global mobility processes. Assignments must be merit‑based and aligned with business needs. 

Requirements
Assignment terms, objectives, and duration must be documented.
Employees must comply with immigration, tax, and labour laws in home and host countries.
Repatriation and transition support must follow established procedures.

 

Approved by Executive Vice President, Human Resources, Teija Sarajärvi

Entered into force on May 11, 2026.