There’s a large trade union structure in Finland – around 100 unions spread across three different central organizations. In fact, over 80 percent of Finnish workers belong to a trade union. Such membership is integral to the way of working, the Finns seeing such as very important in enabling robust collective bargaining agreements for their members, including salaries, annual leave, working hours, and so on. The process is a very democratic one because if either party violates the collective bargaining agreement, the dispute can be taken to a labour court for resolution.
The Finnish people are somewhat reserved but straight-talking and are known for being modest, honest and reliable. They value frankness and openness – oral agreements are as good as written ones. Like their Nordic neighbours, being punctual is expected, and anyone running late for a meeting call ahead to say so. As for business meetings themselves, these are invariably run to tight schedule, with no unnecessary re chats which are common in other European countries. Consequently, decisions on matters are reached quickly. Then there are those little parts of Finnish business etiquette. If a host invites the use of his sauna, this should be accepted. Such an invitation is a sign of trust on the part of your host.
The most sparsely populated country in the EU, Finland is home to 5.5 million people with over a fifth of them living in the capital and home of central government, Helsinki. Finland is a parliamentary republic with the Swedish-speaking Aland Islands being an autonomous region of the country. In all, it has 311 municipalities.
Don’t be surprised to be invited to discuss business in the sauna – all part of the Finn way!
The standard work week in Finland is 40 hours, and the work day cannot go above eight hours. Regular working hours may be arranged as an average of 40 hours over a period, but not above a year. Collective bargaining agreements typically provide for shorter hours of work. Should work time limits be passed, overtime pay is compulsory. This is paid at an increased rate of 50 percent for the first two hours, increased to 100 percent for any hours beyond that but overtime wages can be exchanged for time off in lieu. A worker is entitled to refuse to work overtime and overtime work must be separately agreed between employee and employer on each occasion.
Annual leave in Finland is earned according to time spent at work during a ‘leave-earning’ month – this is any month when the employee works for at least 14 days or 35 hours. Employees can earn two days of holiday for each leave-earning month worked if they’ve been with the company for less than a year at the end of the leave-earning year (March 31). This increases to two and a half days per leave-earning month worked, after their first year. Collective bargaining agreements often provide for longer periods of annual leave.
The Finnish Government is currently proposing to limit the number of annual worker holidays to a maximum of six weeks. Its employers who decide when the annual leave can be taken, but not before discussion with employees. They must be advised of the time of the annual holiday at least one month, but no later than two weeks, before the annual holiday begins. Saturdays are generally included in the annual leave days.
Workers usually take their holiday during the annual leave period beginning in May ending in September, unless otherwise agreed to by the boss. He may agree to his employee taking a portion of his holiday that doesn’t exceed 12 weekdays in one or more periods. The employee has a right to carry over any portion of his/her holiday exceeding 24 days. The carried-over holiday must be granted to the employee in the calendar year/years that he/she decides. Standard wages are paid for annual vacations, just prior to the commencement of holiday, and will include all non-temporary bonuses. A holiday bonus is typically stipulated in the collective bargaining agreement, generally amounting to 50 percent of the pay for the annual holiday, and can be paid before or after the annual break.
Bosses must pay are obligated to pay the worker who’s off sick, based on his/her employment contract and collective bargaining agreement stipulations. The actual length of the employment relationship influences the amount of pay during illness. Anyone who’s been with a firm for a minimum of one month is entitled to full pay for a period of illness up to nine days. Those with less than one month are entitled to half wages. The Government has also proposed reducing the employees’ right to full salary for the first nine days of sickness by making the first day of sickness unpaid and compensating only 80 percent of the salary for the remaining eight days.
Both mums and dads are entitled to parental leave in Finland for the birth of a child. The length of maternity, paternity, or parental leave is altogether approximately 317 weekdays and covers roughly the first year of a child’s life. So, maternity leave works out at 105 days while paternity leave is up to 54 working days.
Agents of Bradford Jacobs are totally on the ball to make your Finnish expansion processes painless and easy. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the expense of setting up a branch office or subsidiary. Our Finnish agents and our worldwide Employer of Record Platform is designed to provides you with piece of mind, allowing you to concentrate on running your business.
With Bradford Jacobs’ in-country legal experts and our experienced and trained staff, we can guide you smoothly through the many of complex laws and regulations of hiring staff in Finland. When negotiating terms of an employment contract and sending a job offer letter to an employee in Finland, it is a legal requirement to put a strong employment contract in place, in Finnish as well as English, which sets out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Finland should always state the salary and any compensation amounts in Euro rather than a foreign currency.
Here’s some hugely attractive reasons you should use Bradford Jacobs’ agency services in Finland:
- You have a contractor overseas and you want to take them on full-time as a company employee.
- As they’re a contractor, your company is currently in a non-compliant relationship with them.
- Your company wants to invest in these resources and show your commitment to them by offering then full-time work under your company banner.
- The contractors are asking for the improved status afforded by full-time employment.
- You’re seeking cost-effective solutions in upgrading contractors to employee.
- Legal complications need to be avoided when converting contractors to employees.
- Avoid the costs and risk of maintaining a foreign corporate entity. You see that the compliance and financial perspective as it stands is too high in terms of investment and just does not tie-in with your long term goals.
- It needs to be done quickly. You’d like to hire today, but are in need of an interim solution while setting up your foreign entity.
Well, our single answer to all of these dilemmas is – no problem!
For companies wishing to hire employees in Finland, our expert advisors can walk you through the nuances of employment and hiring in Finland – and indeed in every other European state. Within just 24 hours following your initial call to us, Bradford Jacobs will send you a customized proposal to match your exact specifications and requirements. You can have your employees up and running within a few days of the paperwork being signed and sealed.
Remember, whether foreign national expatriates or local national hires, Bradford Jacobs can assist with Finnish business visas, work permits, local payroll, taxes, and general employment support. Our services will drastically decrease your time to market, fully compliant and without the hassles and headaches.
If you’re considering engaging a PEO in Finland, we suggest you first check out what Bradford Jacobs Consulting can offer…
How Finland PEO works
Our aim as the Employer of Record for your international employees is to provide specific payroll, HR and ‘in-country’ compliance services.
In the first instance, Bradford Jacobs professionals will consult with you to understand your specific requirements and timeframes and assess the best model to provide our services. As these are co-employer and employee arrangements, there will be some important conditions for you to consider so that the Professional Employment Outsourcing model remains accurate, timely and – most importantly – compliant with the rules and regulations governing staff employment in a specific country. The most important thing we do is protect our clients and their workforce – which makes BRADFORD JACOBS the reliable partner you would want to work with.
Finland PEO Service Overview
Bradford Jacobs Consulting provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary say, as an example, in Finland. Your candidate is hired via Bradford Jacobs agencies in Finland in accordance with local labor laws and can be set up within a few days. One of our experts is assigned to work with your team, representing your company exactly as if he or she were your employee and working to meet your requirements in that country.
Our PEO service enables clients to run payroll in Finland while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As global PEO professionals, we manage employment contract best practices, as well as severance issues and even termination if required. We also keep you up to date of any changes to local employment laws in Finland.
Establishing a branch office or subsidiary in Finland to engage a small team is time consuming, expensive and complex. Finnish labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Our global partners make it problem-free and an easy exercise to expand into Finland. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the burden of setting up a Finnish branch office or subsidiary outfit.
Features and Benefits
- Solutions available for all nationals.
- Employment and business support provided by local professional partners.
- Contractors benefit from the highest legitimate retention through the use of tax and social security treaties, expatriate tax regimes, pension schemes, double taxation agreements and tax claimable expenses.
- Value for money and flexible fees – inclusive of Finnish tax return and expenses claims. These are charged only when the contractor is starts working. If contactors wish to use their own accountants to file income tax returns, we pay their accountants’ fees up to the amount charged by our own accountant.
- EUR 5,000,000 cover for employers’ and business liabilities.
- Single point of contact, so contractors can focus on their job.
- Extensive expertise in Finnish tax and social security issues.
For the Employer
- Fast international employee engagement solution.
- Controls operating budgets as all employer costs are provided at the outset to ensure full transparency.
- Time efficient with minimal paperwork required compared to the red tape often encountered when setting up your corporate entity.
- Professional assistance with employment and compliance matters.
- Reduced legal and accounting costs.
- All statutory professional insurances are provided as part of the Bradford Jacobs service.
For the Employee
- Compliant local employment contract.
- Payroll on-time and 100 percent accurate.
- Professional HR assistance with employment related enquiries.
- Up-to-date information on tax regulations and compliance.
Contract of Employment
- Each worker is issued with a comprehensive contract of employment in dual language – in this example case, Finnish and English.
- An overview of the statutory provisions in Finland will be made available to you prior to contract offer. Bradford Jacobs will appraise you of all the salient in-territory HR rules to ensure you have a thorough understanding of Finnish laws and protocols.
- In conjunction with in-country expert advisors, Bradford Jacobs will recommend where these provisions can easily be enhanced enabling you to provide a fully competitive salary and benefits package for all your employees.
- Salary, commissions/bonuses and all benefits are agreed with the ‘workside’ employer and are contractually included.
- Fully managed service to assist with routine HR tasks such as absence management and expense processing.
- Guidance on in-territory compliance requirements – such as any legal obligation to record time and overtime provisions.
- Ad-hoc support available around the clock to support you when you need it most in the event of any disciplinary, grievance or other HR matters requiring urgent attention.
- Regular updates provided and advice available to ensure that you are made aware of not only significant changes to existing laws but also to ensure ongoing compliance with all aspects of Finnish employment law.
- Bradford Jacobs will bring any issues to your early attention and, where appropriate, work with you to ensure internal policies and handbooks are updated accordingly.
- Accident insurance covering occupational accidents, commuting accidents, and occupational diseases as required by Finnish law is provided as standard.
Payroll & Settlement
- Fully compliant international payroll funding process ensuring that employees and competent authorities are paid on time, electronically into the relevant bank accounts
- Statutory filing, submissions and end of year reporting completed as standard.
- Liability payments made in line with local territory requirements to the respective competent authorities well in advance of deadlines.
- Staff payments made to employees on a fixed weekly/bi-weekly/or monthly basis as required in local currency.
- Electronic pay slips provided to employees.
- We hope that you enjoy a long and mutually beneficial relationship with all your employees. If your employee decides to move on, however, you can rest assured that all leaving documentation required by him or her will be issued efficiently. According to the labour law of Finland, your employees will be at risk of having their work permit revoked if they (i) do not perform the works for which they are employed and (ii) lose vital qualifications that are required to execute the job.
- Our BRADFORD JACOBS’ employment solutions helps you have your mobile workforce officially employed in Finland by our company instead of setting up your own legal entity there. You just choose the right candidate that you need to have working for you in Finland and then leave it to us to handle all the rest – fast and hassle-free.
Once the contractor registers with us, we take care of all work-related permits and registration formalities. He or she sends us completed timesheets and any approved expenses. We invoice the end client. When the invoice is settled, we deduct all contributions due to the Finnish authorities and transfer the remaining salary into the contractor’s bank of choice.
Finally, at the end of the financial year, we prepare the year-end accounts and, at the end of the assignment, we de-register the contractor.
We appreciate each situation and business is different. That is why Bradford Jacobs offers a consultative and bespoke solution to every client. Personalized job specifications, job offers, and benefits packages are all agreed with you during the set-up process. We know one size does not fit all and rest assured we can accommodate all bespoke requirements.
Sounds good? Then do contact us to arrange an initial consultation with our team.