FINLAND
List of countries
HR Services for Finland
In recent years, Finland has become a haven for HR outsourcing. This treasure trove of talent is propelled by world-class educational institutions fostering professionals skilled in technology, engineering, and a plethora of other fields.
Recognized as a hub of talent and economic activity, Helsinki, the vibrant capital city of Finland, draws both local and international professionals. The city’s embracing attitude towards technology and startups nurtures a dynamic environment for various industries such as information technology, design, and clean technology.
According to Business Finland, “This country is a nation of designers, engineers, problem-solvers, and pioneers at the forefront of digitalization. The Finnish brain power is reshaping the way the world sees the future.”
ALL YOU NEED TO KNOW ABOUT
HR OUTSOURCING IN FINLAND
FINNISH EMPLOYMENT
REGULATIONS TO KNOW
THE BENEFITS OF
EXPANSION IN FINLAND
THE CHALLENGES OF
EXPANSION IN FINLAND
FAQ for Finland
All you need to know about outsourcing
your HR in Finland with EHRS
Comprehensive HR Management
Europe HR Solutions ensures efficient HR operations in Finland, handling payroll, recruitment, compliance, and employee management. We take care of the details so you can focus on scaling your business.
Compliance with Finnish Regulations
Navigating Finland’s labor laws, collective agreements, and tax requirements can be challenging. Our expertise ensures full compliance with Finnish and EU labor regulations.
Cost and Time Efficiency
Outsourcing your HR needs reduces overhead costs and administrative burdens, enabling your team to focus on core business operations while ensuring professional HR support.
Finland employment regulations to know
Employment Contracts
In Finland, employment contracts can be written, oral, or electronic, but a written agreement is highly recommended. Contracts must specify working hours, salary, benefits, and termination terms, often influenced by collective labor agreements (CLAs).
Working Hours and Overtime
The standard workweek in Finland is 40 hours. Overtime is regulated by law and must be compensated with higher pay or additional leave. Flexible work arrangements are common and encouraged.
Social Security Contributions
Employers in Finland must contribute to social security programs, including pensions, unemployment insurance, and healthcare. These contributions are mandatory and play a critical role in employee welfare.
The benefits of expansion in Finland
Stable and Innovative Economy
Finland is known for its stable economy and focus on innovation, particularly in technology, education, and sustainable industries. This makes it an excellent location for businesses seeking growth.
Highly Skilled Workforce
Finland offers access to a well-educated, multilingual workforce. With a strong emphasis on education and innovation, the talent pool is ideal for businesses in tech, research, and creative sectors.
Business-Friendly Environment
Ranked among the top countries for ease of doing business, Finland offers a transparent legal framework, robust infrastructure, and government support for startups and foreign companies.
The challenges of expansion in Finland
High Labor Costs
While the workforce in Finland is highly skilled, labor costs, including wages and mandatory social contributions, can be significant. Careful financial planning is essential.
Complex Collective Agreements
Many industries in Finland operate under sector-specific collective labor agreements, which dictate wages, working conditions, and employee rights. Understanding and adhering to these agreements is vital for compliance.
Adapting to Finnish Work Culture
Finnish work culture values equality, independence, and work-life balance. Employers must adapt their management styles to align with these cultural norms to foster employee satisfaction and engagement.
Most Asked Questions
About Finland
Why do I need a detailed employment contract in Finland? Aren’t verbal agreements enough?
While verbal agreements are legally binding, Finnish law requires a written statement of terms for all employees. Without it, disputes over wages, duties, or working conditions can result in fines or legal claims.
Why It’s Risk-Free: We ensure all contracts are legally compliant and clearly define employee rights and obligations, protecting your business from disputes.
Do I really need to track working hours in Finland? Isn’t flexibility more important?
Finland’s Working Hours Act limits regular hours to 40 per week or 8 per day, with overtime restrictions. Employers must document hours to avoid non-compliance fines.
Why It’s Risk-Free: We provide systems to track and manage hours, ensuring compliance while supporting workplace flexibility.
How much annual leave do I need to offer? Isn’t the statutory minimum enough?
Employees in Finland are entitled to 4 weeks (24 days) of annual leave, plus an extra week after one year of employment. Offering more than the minimum can improve retention and satisfaction.
Why It’s Risk-Free: We help you balance compliance with competitive leave policies to attract and retain top talent.
Parental leave in Finland seems excessive. How can I maintain productivity while employees are on leave?
Finland offers generous parental leave, with each parent entitled to 160 days of paid leave. Proper planning and temporary hires can ensure business continuity during absences.
Why It’s Risk-Free: We assist with workforce planning and leave compliance, helping you maintain stability while supporting employee well-being.
Do I need to follow collective agreements (CAs)? Can’t I just create my own policies?
CAs are not mandatory, but they often govern wages, benefits, and working conditions in Finland. Ignoring them can harm employee relations and competitiveness.
Why It’s Risk-Free: We identify applicable CAs and align your policies with Finnish standards, ensuring compliance and smooth operations.
How do payroll taxes work in Finland? What if I make an error?
Employers must deduct income tax, social security contributions, and pension payments. Mistakes can lead to audits, penalties, and reputational damage.
Why It’s Risk-Free: We manage payroll compliance, ensuring accurate deductions and timely filings with Finnish authorities.
Do I need to worry about health and safety in Finland? Isn’t it already a safe country?
Employers are required to ensure a safe work environment under Finland’s Occupational Safety and Health Act. Risk assessments and safety measures are mandatory.
Why It’s Risk-Free: We conduct risk assessments and develop safety policies, keeping your workplace compliant and employees protected.
Is compliance really worth the investment? Won’t it just increase my costs?
The cost of non-compliance—fines, lawsuits, and employee turnover—far outweighs the investment in doing things right. Compliance builds trust and operational stability.
Why It’s Risk-Free: We streamline compliance, saving you time and money while helping you maintain a secure and employee-friendly workplace.
Are probation periods necessary? Can’t I just terminate new hires if they don’t perform?
Probation periods, capped at six months, allow for easier termination if an employee isn’t a good fit. Without one, standard termination protections apply, making it harder to part ways.
Why It’s Risk-Free: We design compliant probation terms, giving you flexibility during the evaluation period without legal risks.
Is overtime pay mandatory? Can’t I offer extra leave instead?
Overtime pay is required by law unless a collective agreement or contract allows compensatory time off. Failing to comply can lead to legal claims for unpaid wages.
Why It’s Risk-Free: We help you structure overtime policies that align with Finnish regulations, preventing disputes and ensuring fairness.
Do I need to pay employees during sick leave? Isn’t this handled by the government?
Employers must pay full salary for the first 9 days of sick leave. After that, the state sickness allowance covers the absence, but proper documentation is required.
Why It’s Risk-Free: We manage sick leave processes, ensuring timely filings and compliance with Finnish laws.
Termination laws in Finland sound complicated. What if I need to reduce staff quickly?
Terminations must comply with Finnish Employment Contracts Act, requiring valid reasons and adherence to notice periods. Improper terminations can result in costly claims or reinstatement orders.
Why It’s Risk-Free: We guide you through lawful termination processes, minimizing risks while ensuring compliance and fairness.
Are pensions mandatory in Finland? What are the benefits of offering them?
Employers are required to contribute to statutory earnings-related pensions. Offering additional pension benefits can enhance your attractiveness as an employer.
Why It’s Risk-Free: We ensure all pension contributions are compliant and help design packages that support employee retention.
Can I hire non-EU workers in Finland? Isn’t the process too complicated?
Non-EU workers can be hired with a Finnish Residence Permit for work, but the process requires proof of salary compliance and proper documentation.
Why It’s Risk-Free: We handle the permit application process, ensuring compliance and smooth onboarding for international hires.
What happens if I fail a compliance audit in Finland? Could it disrupt my operations?
Non-compliance with Finnish labor laws can result in fines, legal claims, or operational restrictions. Inspections typically review payroll, contracts, and workplace safety.
Why It’s Risk-Free: We proactively review your policies and processes, ensuring you’re prepared for inspections and fully compliant.