Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Finland and hire employees without the need to establish a new corporate entity.
We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion.
Interested in doing business in Finland? Here are the top five things you need to know:
1. Social security
Employer social contributions total approximately 25% of the gross remuneration. Employee social contributions total approximately 10.5% of the gross remuneration.
2. Employment contract details
There are no specific rules governing the language for employment contracts as long as the employee understands the contract language. Bilingual wording is recommended for employees without the relevant language skills. Contracts must be in writing.
3. Fixed-term contract extensions
There is no statutory limit to the duration of a fixed-term employment contract or the number of times it may be renewed as long as the nature of the undertaking is not one that can be performed by a permanent employee or be deemed indefinite in itself.
A fixed-term contract may not be terminated by the employer before the agreed end date, unless the parties have agreed on a trial period and termination occurs within that period.
4. Termination costs
Termination costs are a maximum of 6 months’ salary according to seniority. Additionally, untaken vacation must be compensated by payment in lieu as well as any unpaid commission or bonuses. The employer may be required to pay a lump sum compensation equivalent to 24 months’ pay if the employee successfully challenges the dismissal in court.
5. Probation Periods
The maximum probation period is 4 months. During the probation period the contract may be terminated by either party without notice.
If you are looking to expand your workforce in Finland (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com.
Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.
For more detailed information on employment matters in Finland, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation.