Pay of a posted worker
NOTE! The guidelines based on the application of the old law can be found here.
The terms and conditions of employment of the posted worker are determined according to the legislation of both the country of origin and Finland. The terms and conditions of employment in the country of origin may differ from those in Finland. The purpose of the Act is to ensure that posted workers are treated equally compared to employees of companies operating in Finland. Provisions of the labour legislation and the universally binding collective agreement granting the worker more favourable work life conditions than the legislation otherwise applicable to the employment contract of the worker shall apply to the work of a posted worker.
Wages of posted workers
Posted workers must be paid at least the compensation determined on the basis of a universally binding collective agreement as referred to in chapter 2 section 7 of the Employment Contracts Act. If there is no universally binding collective agreement for the sector and no other agreement or practice in force, the employee must be paid a usual and reasonable wage. The wage agreed by the employer and the employee must not be substantially less than a wage that may be considered usual and reasonable. The above provision applies to situations where wages have been agreed in the country of origin without knowledge of the level of wages in Finland.
Wages of posted temporary agency workers
The employment conditions of temporary agency workers posted in Finland are determined in the same way as for Finnish temporary agency workers.
Posted temporary agency workers must be paid at least the compensation determined in accordance with Chapter 2 Section 9 of the Employment Contracts Act. In practice, primarily the collective agreement of the temporary work agency will be applied. If there is no such collective agreement, the minimum terms are determined in accordance with the collective agreement applied by the contracting company.
Should no collective agreement be applied to the employment of the posted temporary agency worker, the conditions concerning wages, working hours and the annual holiday must be in accordance with agreements or practices which are binding for the contracting company or generally applied by this.
The worker may agree with the employer, i.e. the temporary work agency, on those working conditions which are not determined in the collective agreements. The employment conditions of the temporary agency worker may therefore differ from those of the workers of the contracting company (for example lunch or phone benefits).
Grounds for the determination of the wages
In Finland the grounds for the determination of the wages, i.e. the minimum wages and its different components, the calcuation method for the payable wages as well as the principles for placing workers in different payment categories are normally determined in accordance with the collective agreement.
In Finland there is an universally binding collective agreement applicable to most branches. Therefore, when determining the wages, one must first determine
- which collective agreement is applied in the sector and provides the basis for
- the hourly or monthly wage and
- the taskbased payment component and
- a possible personal payment component.
The collective agreement may contain provisions on the placing in payment categories, but in a part of the collective agreements the placing in payment categories is based on a competence classification or so called rates. The collective agreements normally include more information on the placing in payment categories.
Compensations related to the working hours and the annual holiday
In Finland the minimum wages of a posted worker also include compensations related to the provisions on working hours and annual holidays. These may be based on the law or/and the collective agreement. There may be agreements differing from what is laid down in the law on certain conditions. Therefore, it is important to consider both the provisions in the collective agreement as well as in the law.
The collective agreement may for example hold provisions on the compensations or time off for shortening of working hours or compensations for work on Church Holidays. There may also be agreements on the overtime compensations.
Collective agreements may also contain agreements on the determination of the annual holiday compensation and a holiday bonus, payable in addition to the annual holiday compensation.
Based on the collective agreement the annual holiday compensation may be determined as a percentage value of the paid wages or in accordance with a coefficient determined on number of the accumulated days of annual holidays. The holiday bonus is determined as a percentage value based on the annual holiday compensation.
The employer is responsible for the payment of wages
The employer is responsible for the payment of the wages to the worker. The contractor is not responsible for the payment of the wages to the worker. However, when hiring temporary agency workers the contractor must give the employer of the temporary agency workers all the information he needs in order to fulfill his obligations.
Under the new Posted Workers Act, a construction site builder or a general contractor shall, having been notified that a posted worker has not been paid correctly,
- immediately request the employer of the posted worker, e.g. the posting undertaking, and
- send the request for information and the report submitted by the posting undertaking to the worker. At the request of the worker, the information request and the report shall also be submitted to the occupational safety and health authority.
Further information: Pay
The labour legislation forms the basis for the regulation of the employment conditions on the labour market. The trade unions and employer organizations conclude collective agreements and collective agreements on civil servants. These agreements include more detailed agreements on the employment conditions than the applicable law. Universally binding collective agreements are also binding for unaffiliated employers, i.e. employers not belonging to an employers’ organisation. Any clause in an employment contract that violates the corresponding provision in a universally binding collective agreement is null and void.
Local agreement means for example that the employer and workers may enter into a for both parties binding agreement concerning certain terms and conditions of employment. Collective agreements may however impose restrictions on local agreements; proper procedure must therefore be ensured before concluding an employment contract.
Further information: Collective agreement
Some central organisations and employees trade unions and employer´s associations
- Construction Trade Union
- Finnish Electrical Workers’ Union
- Metalworkers’ Union
- Woodworkers' Union of Finland
- Finnish Confederation of Professionals STTK
- Federation of Special Service and Clerical Employees ERTO
- Trade Union Pro
- Confederation of Unions for Professional and Managerial Staff in Finland AKAVA
- Confederation of Finnish Industries EK
- Employers' Federation of Road Transport
- Federation of Finnish Commerce
- The Finnish Hospitality Association MaRa
- Finnish Forest Industries Federation
- Service Sector Employers PALTA
- Confederation of Finnish Construction Industries RT
- The Federation of Finnish Technology Industries