Background Checks

Employers should primarily collect personal data directly from the employee or applicant. If they need information from other sources, they must obtain the employee’s consent. However, consent is not required for collecting personal credit data or criminal record information to assess the employee’s reliability, as regulated by law.

• Employers can request a security clearance check from the Finnish Security Intelligence Service, with the applicant’s consent required.
• Employers must check the criminal records of employees who will work alone with minors.

Verification and New Hire Reporting

Employers must report new hires to relevant authorities to ensure compliance with employment laws.

Onboarding Process & Documentation

Collecting Required Documentation

• Valid travel documents are required for EU citizens staying less than three months.
• Required for non-EU citizens staying longer than 90 days.
• Necessary for short-term stays for nationals of non-visa-exempt countries

Providing Employee Rights and Obligations

Employment Contract

• Occupational Health Care Information: Details of the occupational health care services provided. Based on a Workplace Survey and Occupational Health Care Action Plan.
• Workplace Safety Information: Risk Assessment and Occupational Safety and Health Program. Procedures for reporting hazards and handling harassment or inappropriate treatment.
• Equality and Non-Discrimination Plans: Required if the company has 30 or more employees.
• Work Community Development Plan: Required for companies with 20+ employees.
• Substance Abuse Policy: Mandatory if drug testing is conducted; otherwise, recommended.
• Information on Right to Work (for international hires): Employers must verify and document the employee’s legal right to work in Finland

Healthcare

Public Health Care:

All residents have access to public health care services, funded through taxes.

• Provided by municipal health centers, including general practitioner services, maternity and child health clinics, and dental care.
• Offered by hospital districts for more complex medical needs.

Private Health Care:

• Private health care services are available and often used to complement public services.

Retirement

National Pension is provided by the Social Insurance Institution (Kela) to ensure a basic income for those with little or no earnings-related pension.

• Earnings-Related Pension: Based on the employee’s earnings and work history, managed by private pension insurance companies.
• Voluntary Pensions: Additional private pension plans to supplement statutory pensions.

The retirement age in Finland is flexible, typically ranging from 63 to 68 years, depending on the individual’s birth year and work history.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

While employment contracts can be oral, it is standard practice to provide them in writing to clearly define the terms and conditions.

Mandatory Inclusions:

• Employer and employee details
• Job description and responsibilities
• Start date and contract duration
• Work location
• Salary and payment intervals
• Working hours
• Holiday entitlements
• Notice periods for termination

Probation Period

Probationary periods cannot exceed six months.

Visas

Visa Categories

• Schengen Visa: For short stays up to 90 days.
• Long-Stay Visa (D visa): For stays longer than 90 days but less than a year.
• Residence Permit for Employment: Required for employment exceeding 90 days.

Application Process

• Schengen Visa: Complete application, ensure passport validity, attach a photo, and provide supporting documents like a business invitation letter and travel insurance.
• Long-Stay Visa: Often starts with an employment contract and requires submission of employment details and proof of accommodation.

Independent Contractors

Independent contractors work without the direction and supervision of an employer. They are responsible for their own business operations, including financial risks and profits.

• The relationship between an independent contractor and their client is governed by a contract that outlines the scope of work, payment terms, and other conditions.
• Misclassifying an employee as an independent contractor can lead to legal penalties. It’s crucial to correctly identify the nature of the working relationship.

Paid Time Off

Employees earn 2–2.5 days of leave per month, depending on their length of service, leading to approximately 24–30 days annually.

Public Holidays

• New Year’s Day
• Epiphany
• Good Friday
• Easter Sunday
• Easter Monday
• May Day
• Ascension Day
• Whit Sunday
• Midsummer’s Eve
• Midsummer Day
• All Saints’ Day
• Independence Day
• Christmas Eve
• Christmas Day
• 2nd Day of Christmas

Bereavement

Employees are entitled to short-term leave, typically a few days, to manage funeral arrangements and cope with grief.

Maternity Leave

Referred to as family leave and includes maternity leave, paternity leave, parental leave, and childcare leave. Family leave is unpaid, but this varies within the employment contract.

• A pregnant employee is entitled to 105 days of maternity leave.
• Working is allowed during maternity leave; however, the mother cannot work two weeks before the due date and the two weeks after giving birth.

Paternity Leave

Employees are entitled to 54 days and can be divided but must be taken before the child reaches two years old.

Parental Leave

See maternity leave.

Sick Leave

Duration depending on the collective bargaining agreement (CBA)

• Generally, 4 weeks of pay for employees with less than 3 years of service, and up to 5 years for those with more than 3 years of service.
• If an employee is sick for more than ten days and is eligible, their salary payment will be reduced by 50%, which will be covered as a sickness payment allowance (sairauspäiväraha) from KELA

Termination Requirements

Grounds for Termination Justified Reasons: Can include economic reasons, personal performance issues, or misconduct, with a required notice period dependent on the length of employment.

• Employer Obligations: Must provide written reasons for termination upon request and adhere to collective agreements regarding dismissals.
• Unjustified Dismissals: Employees may contest dismissals they deem unjustified, potentially leading to compensation or reinstatement.

Notice Period

Although the notice period has been agreed on in the collective agreement. The amount of notice is also dependent on the length of service as follows:

• Up to one year employment – 14 days’ notice
• One to four years of employment – one month’s notice
• Four to eight years of employment – two months’ notice
• Eight to 12 years of employment – four months’ notice
• Over 12 years of employment – six months’ notice

If the employee resigns, they have to notify as follows:

• Up to 5 years of employment – 14 days’ notice
• More than five years of employment – 1-month notice

Severance Pay

Severance pay is influenced by several factors, primarily the length of service and the employee’s salary. Here’s a detailed breakdown:

• Short-term Employment: Employees with shorter service periods may receive a smaller severance package. The notice period for employment less than one year is typically 14 days.
• Long-term Employment: Employees with longer service periods are entitled to longer notice periods and potentially higher severance pay. For example, if an employee has been employed for over 12 years, the notice period can extend up to six months.

The severance pay would be calculated as follows:

• Severance Pay=Monthly Salary×Notice Period

Unemployment Insurance

Unemployment compensation is provided through two main systems: Kela and unemployment funds.

• Basic Unemployment Allowance: This is provided by Kela and is available to those who meet the general conditions for unemployment benefits. The basic allowance is approximately €37.21($42.08 USD) per day.
• Earnings-related Unemployment Allowance: This is provided by unemployment funds and is based on the individual’s previous earnings. To qualify, you must have been a member of an unemployment fund for at least 12 months and meet the working condition.
• Labor Market Subsidy: This is available for those who do not qualify for the basic or earnings-related allowance, often due to insufficient work history.

Anti-Discrimination Practices

Non-Discrimination

The Non-Discrimination Act ensures that everyone is treated equally regardless of age, ethnic or national origin, nationality, language, religion, beliefs, opinion, disability, health, sexual orientation, or other personal characteristics. Key points include:

• Discrimination in any form, including direct and indirect discrimination, harassment, and denial of reasonable accommodation, is prohibited.
• Employers must make necessary adjustments to enable people with disabilities to work on an equal basis with others.

The Act on Equality between Women and Men aims to promote gender equality and prevent gender-based discrimination. It covers:

• Ensures equal treatment in recruitment, working conditions, and career advancement.
• Defines and prohibits gender-based harassment and sexual harassment.

The Equality Act mandates that employees performing the same work or work of equal value must receive the same pay, irrespective of gender. Key initiatives include:

• Employers with at least 30 employees must prepare a gender equality plan, which includes a pay audit, at least every two years.
• Pay audits help identify and address unjustified pay differences between men and women.

The Equal Pay Program is a collaborative effort between the government and labor market organizations to reduce the gender pay gap. It focuses on:

• Creating transparent and fair pay structures.
• Addressing occupational segregation to ensure equal opportunities.

Pay Gap Reporting Employers are required to report on gender pay gaps as part of their gender equality plans. This includes:

• Information on the number of men and women by job classification.
• Analysis of pay differences and corrective actions if unjustified disparities are found.

Workplace Safety Standards

The Occupational Safety and Health Act mandates employers to ensure that work does not endanger the safety or health of employees. Key provisions include:

• Employers must identify and mitigate workplace hazards, provide necessary safety equipment, and ensure proper training.
• Employees must follow safety instructions and use provided protective equipment.

Occupational Health Services Act (1383/2001)

Workers’ Compensation

The Workers’ Compensation Act defines compensable events, such as occupational accidents and diseases, and outlines the benefits payable from the insurance. Key points include:

• Employers must insure their employees against occupational accidents and diseases if the annual salary exceeds EUR 1,300 ($1,471.50 USD).
• Covers medical expenses, loss of income, rehabilitation, and permanent disability. In case of death, a survivor’s pension is provided to next of kin.
• Self-employed individuals can opt for voluntary insurance to cover occupational accidents and diseases (Ref: Workers’ Compensation Act (459/2015))

Labor Law Sanctions

Working Hours Act: Employers who fail to comply with regulations on working hours, overtime, and rest periods may face fines and mandatory adjustments to work schedules.

Annual Holidays Act: Non-compliance with paid annual leave and holiday pay regulations can lead to fines and compensation for lost holiday entitlements.

Occupational Safety and Health Act: Unsafe working conditions or failure to provide necessary safety equipment can result in significant fines and orders to rectify the situation.

Discrimination and Harassment (Republic Act No. 10911): Breaches of anti-discrimination measures can lead to fines, compensation, and corrective measures.