Employing in Finland
An employer of record, sometimes known as an international PEO can help you quickly hire and onboard workers in Austria – often with just two weeks’ notice. Establishing your own local entity without risk and saving costs, this type of service makes an EOR in Austria worth checking out!
Finland – the land of the midnight sun. Throughout June and July, Finland enjoys a permanent sunrise — and thanks to around 180,000 islands, over 188,000 lakes and an abundance of emerald green forests, there’s plenty of natural beauty to discover. If you’re a coffee-lover, you’ll also fit right in. The Finnish are renowned caffeine fanatics, with each Finn consuming an average of 12 kilograms of coffee per year!
But there are plenty of other reasons for expanding your business into Finland. The Nordic nation has an industrialised and mostly free-market economy, with a developed infrastructure, skilled workforce, competitive operating costs, and a highly conducive business environment. Finland is also one of the least corrupt countries in the world and has minimal red tape to cut through.
Despite its skilled workforce, Finland is facing a future labour shortage due to its ageing population. The tech industry, in particular, has taken a hard knock. So, if you’re a tech company looking to expand overseas, Finland could provide an excellent opportunity to bring your talent with you and give your employees’ careers a boost in this sought-after field.
And convincing them to make the move won’t be too hard, either! Even with an average 40-hour working week, those working in Finland enjoy a high standard of living with plenty of time to explore the country’s extraordinary landscapes. Most workers get five to six weeks of annual leave, and Finland currently leads the way in terms of flexible working. The 2019 Work-Life Balance Index even ranked Helsinki as the best city for work-life balance!

Salary information for Finland

Social security system
The Social Insurance Institution of Finland, Kela, is responsible for providing social security coverage for both Finnish residents who live in Finland on a permanent basis and, in certain situations, to Finns living abroad.
The social security benefits offered by Kela are family benefits, health insurance, rehabilitation, basic unemployment security, basic social assistance, housing benefits, financial aid for students, disability benefits and basic pensions. These benefits are funded by a combination of taxes and insurance contributions.
Public healthcare
Public healthcare in Finland includes:
- Promotion of health and prevention of diseases, as well as care and rehabilitation
- Maternal and child healthcare
- Vaccinations
- Doctor, dentist and nurse appointments
- Mental health services
- Emergency and on-call service
- Hospitals
- Home care
- School and student healthcare
- Occupational healthcare
Statutory benefits
Holiday & leave

Contractual provisions
Non-competition
There has recently been an update to Finnish legislation regarding non-competition agreements with employees, which will result in the employer having to pay the employee a monetary compensation during the time of the non-competition restriction. These changes will take effect on 1 January 2022. For non-competition agreements entered into before the new legislation takes effect, the new rules would apply after a one-year transition period i.e. 1 January 2023. During the transition period, the employer is entitled to terminate any unnecessary non-competition agreements that have been made before the new law comes into force, without the notice period set out in the new legislation.
Termination
The employment contract can be terminated under two scenarios:
- Production, financial and reorganisation related grounds
- Employee’s person related grounds
To terminate the employment under option one, the available work has to have reduced substantially and permanently, and there must be no other suitable positions vacant. If the employer employs regularly at least 20 employees, the employer has to undergo consultation negotiations before making decisions about termination(s).
To terminate with option two, the employee has to have seriously breached or neglected their substantial obligations arising from the employment relationship. Option two also offers the possibility to terminate employment with immediate effect without notice if there’s a serious breach of obligations on the part of the employee.
Statutory insurances
Keen to engage an EOR in Finland? At TopSource Worldwide, we work with local experts to help you navigate the various admin and cost obstacles you may come across along your expansion journey
To find out how we can help your business with our employment solutions in Finland, contact us today.
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