Employer of Record Finland
Skuad’s Finland Employer of Record (EOR) solution helps your business expand without the need for an entity setup. Our unified and automated global human resource (HR) platform enables you to expedite the onboarding of your remote team, manage their payroll, benefits, taxation, probation, and termination in compliance with the local laws. In addition, we help you streamline the global expansion process with the able assistance of our international network of experts from over 150 countries. Book a demo with Skuad to kick-start your expansion into Finland.
Finland At a Glance
Population: 5,549,886 people (in 2024)
Capital City: Helsinki
Languages Spoken: English, Finnish, Swedish
GDP: $320.26 billions (2024)
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Employment in Finland
Since the year 2015, Finland has witnessed a slow yet steady rise in the employment rate, with over 2.531 million people employed in Finland in the year 2020.
The Ministry of Economic Affairs and Employment of Finland is responsible for the labor legislation governing the employment contract law and employment in Finland. Employing international employees is not vastly different from local employees in Finland, apart from certain extra obligations to be fulfilled by the employer.
However, the Finland employment laws are extensive and confusing for companies from other countries. It is advisable to partner with a local Employer of Record, Finland, well-versed with the laws of the land to minimize the potential for conflict.
Let us understand a few aspects of employment in Finland:
To ensure your expansion endeavors are in compliance with the Finland employment laws, Contact Skuad today.
Kinds of Employment Contracts Finland
The employment contracts in Finland can either be open-ended or temporary for a full-time job and part-time jobs.
Usually, employment contracts do not specify a time limit, meaning that the arrangement can be terminated by either party upon serving the agreed-upon notice. Temporary contracts are entered into for specific reasons, and they end when the requirement is met without either party serving any notice.
Apart from these, agency employees can also be employed by the employers wherein the employee works for the agency’s client under the supervision of the client. Legally, agency employees and regular employees have the same duties. Agency contracts are also open-ended and can be terminated in the same manner as conventional employment contracts.
Employers can also hire employees in Finland for on-the-job training and apprenticeships.
As a generally accepted best practice, a strong employment contract must spell out the terms of employment such as compensation, benefits, and the conditions for termination. Joining hands with an Employer of Record, Finland, is the best way to go about it.
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Hiring in Finland
Hiring and onboarding of employees in Finland must be done in compliance with Finland labor laws and employment laws. Along with the written rules and regulations, collective bargaining also plays a major role in the job market of Finland.
The top talents in Finland can be recruited using the following process:
- Once there is a reasonable understanding of the intricacies of Finland’s job market and workplace culture, you can begin by advertising your jobs on relevant job search websites such as Careerjet, Work in Finland, Indeed, etc.7 Be sure to design well-defined and to-the-point job descriptions for the maximum impact.
- After shortlisting the best job applications, prepare to organize personal interviews. Personal interviews offer prospective employees a chance to understand your organization’s work culture.
- Arguably the most important aspect for the hiring companies in Finland is drafting a solid employment contract. It should stipulate every small detail about the employment, right from salary to the rights and obligations of the employer and as well as the employee.
- Upon hiring an employee, the next step is to conduct an in-depth onboarding where the employee is introduced to the code of conduct and other aspects of the job description.
This long-drawn and time-consuming process can be outsourced by partnering with an Employer of Record, Finland. Skuad can help you find the best talents in the country and hire them for you, on your behalf, so that you can get to business, quickly and efficiently.
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Probation & Termination
The standard probation period in the employment contracts in Finland can be six months, during which, either party can terminate the contract without serving any notice period.
After the probationary period ends, the employer can opt for termination of the employment contract if the employee displays grave negligence and fails to perform the duties, upon giving due notice.
The duration of notice varies with the length of employment. If the employment has lasted for 5 years or less, the notice period is 14 days and if it has lasted for more than 5 years, the notice period is a month. However, the employer and the employee can agree to a shorter notice period in case the employee finds another job before the date of termination.
Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Finland, you can fast-track the expansion process. Employer of Record Finland (EOR) solutions by Skuad can make expansion to Finland much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Finland.
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Types of Visas in Finland
To expand your business to Finland, you will need to ensure that your employees obtain work visas in Finland. There are several categories of Finland work visas:
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With local partners in Finland, Skuad can sponsor the work permits for immigrating workers. As Employers of Record, Finland, you can trust Skuad to take care of all the required documentation for work permits. Skuad’s HR platform enables your organization to handle your employees’ Finland work visa requirements and day-to-day management.
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Payroll & taxes in Finland
If you are planning to take your business to Finland, there are several rules and regulations that you must take into consideration. For instance, as a foreign company operating in Finland, you must abide by the country’s payroll and taxation laws such as income tax, VAT, withholding tax, and other employee compensation regulations. There are two ways to go about it – you can either set up an entity with an in-house team that looks after these matters or you can hire the services of an Employer of Record, Finland, thereby making the management easier and ensuring absolute compliance with Finnish laws.
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Taxes in Finland
Bonuses are popular, but no official guidelines exist. Discriminatory incentive plans are not permitted.
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You can expand your business in Finland by setting up a subsidiary company. Before opening a subsidiary company in Finland, you must consider a few questions. What industry do you operate in? What kind of business will prove the most beneficial for you? Where will the subsidiary be headquartered? Are there any other matters that need consideration?
The process is governed by the country’s Limited Liability Companies Act and is as follows:
- Decide whether you should opt for a private or a public limited company.
- Freeze your management composition.
- Deposit the minimum share capital in a bank account (newly opened).
- Submit all the requisite documents – Memorandum of Association, information about the directors and shareholders, etc.
- Submit your LLC’s Start-up Notification Application along with the required documents.
- Register for social security and statutory contribution.
The local laws and regulations governing a subsidiary in Finland can be complex and overwhelming. Rather than risking non-compliance due to ignorance of the law, partner with Skuad, an Employer of Record, Finland – so that your expansion into the international horizon can be smooth and hassle-free.
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A Professional Employer Organization (PEO) can lease employees to an employer by way of a joint employment relationship. This allows you to share and manage all the employee-related responsibilities by outsourcing the core HR functions such as payroll outsourcing. And while the Professional Employer Organization in Finland can significantly relieve you of the many burdens of HR management, it comes with its own set of disadvantages.
It can lead you to lose control over one of the key aspects of your business administration – employees. It brings in an outsider’s influence into your company and can compromise the security of your employee paperwork.
Skuad's EOR solution is a good way to expand your business in Finland without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing and complete management work to us. Connect with Skuad to know more.
If you think your company is ready to expand its operations to Finland, you don’t need to go through the entire process alone. Skuad’s HR platform and Employer of Record services can help you every step of the way. Want to know more about how Skuad can help your business?
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