Regulations for working in Finland

Overview

Whether it’s a business trip, secondment, or workation – working in Finland requires compliance with country-specific regulations. Companies must fulfill reporting obligations, adhere to Finnish labor standards, and consider the minimum wage in Finland as well as social security and tax laws. Finland places strong emphasis on transparent working conditions, fair pay, and compliance with employment legislation. This guide explains what employers need to consider when arranging a posting to Finland or enabling remote work on-site – legally compliant and practical.

EU Posted Workers Directive

What are the requirements?

Foreign employers posting workers to Finland must submit an online notification before the work begins. Notification is not required if the workers are posted within a corporate group for no more than five working days, unless the company operates in the construction sector. In construction, notification is always mandatory for each posting.

Required Documents

Foreign employers must keep the following information available in written form during the assignment in Finland:

Details of the foreign employer posting the workers
Details of the posted workers
Description of the workers’ legal right to work
Information about the working conditions of the posted workers

If the posting lasts longer than 10 days, the following documents must also be kept available:

Working time records
Payslips
Proof of wage payments from the financial institution

These documents must be retained for two years after the end of the assignment. They may be stored abroad but must be submitted to the authorities upon request without delay.

Representative in Finland

Foreign employers must appoint a representative in Finland who is available to liaise with both the posted workers and the Finnish authorities during the assignment. This representative can be a natural or legal person. Appointment is not required if the assignment lasts no longer than 10 days.

Exceptions

Business travelers who do not provide services or act as subcontractors during their stay are not required to register.

Penalties for violation

Violations such as failure to notify, incomplete notifications, lack of a representative, or failure to maintain the required documents and information can result in fines ranging from €1,000 to €10,000.

Labor Law

Minimum Wage

There is no statutory minimum wage in Finland. Wages are determined by universally applicable collective agreements negotiated between Finnish employer associations and trade unions. If no such agreement exists, posted workers must be paid a reasonable normal wage, especially if the salary agreed with the foreign employer falls significantly below local standards.

Working Time

Working time must not exceed 8 hours per day or 40 hours per week. It may be averaged over a longer period. Stricter limits may apply under applicable collective agreements.

Important Hints

Failure to comply with Finnish labor law may result in financial liabilities, fines, or claims under local termination and working time laws.

Social Security

For employees posted to Finland from another EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate provided: The worker remains covered by the social security system of their home country.‍
No A1 certificate: Finnish social security rules apply, and the foreign employer must act like a local Finnish employer.

Important Hints

Violations can lead to significant administrative obligations, back payments (with interest), audits, and substantial penalties. Reputational damage is also possible.

Income Tax

Generally, there is no “de minimis” period during which remote workers are exempt from paying personal income tax in Finland. However, under applicable double taxation agreements, non-residents can avoid taxation of employment income in Finland if their stay does not exceed 183 days and all other conditions are met.

Important Hints

Violations can lead to immediate obligations to file a tax return in the host country, often resulting in extensive consequences for both the employees and the employer.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints