Posted workers mean workers who work ordinarily in another state than Finland, or whom the employer in another state sends for work in Finland for a limited period of time when providing services that exceed the boundaries of the states.
When sending workers, the following situations will come up where
1. the worker is posted under the management of the sending enterprise, i.e. the worker’s employer enterprise, and for work on behalf of it on the basis of an agreement made between the employer and the receiver of services working in Finland
2. the worker is sent for work to a working place or enterprise belonging to the same conglomerate
3. an enterprise practising hiring or exchange of labour sends a worker for work for another enterprise.
Provisions on the minimum terms of employment of posted workers are laid down in the Act on Posted Workers. That legal act implements the Directive of the European Parliament and Council concerning the posting of workers to another EU member state in the framework of the provision of services (96/71/EC). For the application of the Act, it is of no significance whether the employer is from another EU country or from outside the EU. The Act is not applied to the crew working on board ships of enterprises practising merchant shipping.
Certain provisions and regulations of Finnish law have to be applied to the employment contract of workers posted to Finland in so far as they are more favourable for the worker than the provisions otherwise to be applied to the worker.
The following Acts and provisions as such are applied to posted workers:
- Occupational Safety and Health Act
- Occupational Health Care Act
- Young Workers’ Act
- Employment Contracts Act
- 4:2 Work during maternity or parental allowance terms,
- 4:8 Obligation to pay remuneration,
- 4:9 Return to work
Certain provisions of the Act on Equality between Women and Men has to be applied to the workers posted to Finland. Moreover, the provisions on working time, annual holiday and industrial safety included in the universally binding collective agreements shall be observed in the employment relationships of posted workers.
Minimum wage of posted workers
Provisions on minimum wage are included in the Act on Posted Workers. The remuneration determined on the basis of the universally binding collective agreement referred to in the Employment Contracts Act is considered the minimum wage of posted workers. The employer has to observe at least the regulations on the terms of employment and working conditions included in the national collective agreement (universally binding collective agreement) considered representative in the branch concerned. The condition of an employment contract, which is in conflict with the corresponding provision of a universally binding collective agreement, is void, and instead the provisions of the universally binding collective agreement should be observed.
The general applicability of collective agreements is confirmed by an approval committee operating within the Finnish Ministry of Social Affairs and Health. That committee examines the general applicability of all nationwide collective agreements. The committee also publishes all generally applicable collective agreements in list form on the Internet.
The Act on Posted Workers is supervised by the occupational safety and health authorities, except the provisions of the Equality Act, which are supervised by the Ombudsman for Equality (MSAH) and the National Discrimination and Equality Tribunal. The occupational safety and health authorities advise the employers and workers in questions related to legislation on employment relationships and to universally binding collective agreements. The Division of Occupational Safety and Health at The Regional State Administrative Agency for Southwestern Finland (e-mail email@example.com) is the contact authority in Finland of posted workers as required by Directive 96/71/EC.
Information on the social security of posted workers is provided by the Ministry of Social Affairs and Health. The Finnish Centre for Pensions issues E101-certificates for posted workers and makes the decision regarding applicable social security legislation. On the pages of the National Board of Taxes there is information on the taxation of posted workers.