Finland PEO Services

Global PEO Services (GPS) helps companies hire employees in Finland without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in Finland, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Finland labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Finland. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Employment contracts can either be fixed- or indefinite term.

Fixed-term contracts are issued for:

• Seasonal work
• Substitute work
• Fixed-term projects
• One-time work

Employers must provide employees a written document with detailed employment terms before their first salary period ends. This document must contain the following information:

• • The time when the work begins
  • The duration of any temporary contract and the reason why it is temporary
  • The length of any trial period
  • The place of work
  • The main duties of employees
  • The collective agreement that applies to the work
  • The basis for determining the pay and the payment period
  • The regular working hours
  • The manner of determining annual vacation
  • The notice period in case of termination of the contract and the basis for calculating this period

Employers and employees can agree that the work begins with a probationary period. The maximum probationary period is 4 months.

Holidays

Employees are entitled to the following paid public holidays:

• Easter Saturday
• First of May
• Midsummer’s Eve
• Independence Day
• Christmas Eve

Collective bargaining agreements generally contain provisions on other holidays with full salary entitlements such as New Year’s Day, Good Friday, 12th Day, Easter Monday and Ascension Day. Employees who work on a public holiday are entitled to double pay.

Maternity Leave

Pregnant employees are entitled to 105 days of maternity leave that can start 30 to 50 days before the expected date of birth. Though Finnish law doesn’t require employers to pay salaries to pregnant employees during maternity leave, this obligation is generally specified in the collective agreement.

Paternity Leave

Fathers are entitled to a maximum of 54 days of paternity leave along with the parental allowance. Both the parents can take a maximum of 18 days from these days to stay at home. The paternity leave can either be paid or unpaid, and if unpaid, the Social Insurance Institution pays for the paternity leave.

Sick Leave

Employees are entitled to 9 days of sick leave with full pay each year and with 50% pay if working for less than 1 month. Following this period, the Finnish National Pension Institute pays employees a daily allowance for illness at 70% of regular wages.

Parental Leave

Parental leave for a maximum of 158 days can be taken following maternity leave either by the father or the mother or be divided between them. Even part-time parental leave is also available.

Child Care Leave

Under the Employment Contracts Act, employees can take child care leave after parental leave until the child reaches the age of 3. A child care benefit is paid by the Social Insurance Institution to families that choose not to enroll their child in municipal day care. The parents of small children can take temporary child care leave of 4 days in case the child gets ill suddenly, and can also request for shortened work hours until the child goes to school.