Self-employment

A freelancer may work for one or more work providers at the same time. Freelancers may be self-employed, they may be employees, or they may receive work compensation.

When working as a freelancer, you will make an assignment agreement with the employer. It is important to distinguish whether an assignment is based on temporary employment or on an assignment agreement made as a self-employed trader.

In the case of employment, your employer must comply with labour legislation and meet the costs of pension coverage.

If an assignment does not involve employment, then you are either working as a self-employed trader or receiving work compensation.

Work compensation is compensation for working that is not wages. The work provider will deduct PAYE from this work compensation in the same way as from wages, but there is no duty to pay any employment pension or other social security contributions from work compensation. If your estimated annual work compensation income exceeds a certain sum (EUR 9 423,09 in 2026), then you are required to arrange your own self-employed person’s pension insurance (YEL).

Labour legislation does not apply to recipients of work compensation. Their legal position resembles that of a self-employed person who has not sought self-employed status.

A contractor has a duty to investigate the background of any business partner using agency labour or subcontractors when the work is done on the contractor’s worksite or premises. This includes investigating whether a subcontractor has met its lawful obligations with respect to taxation, pension contributions and wages. A contractor has a duty to determine which collective agreement and what kind of terms and conditions of employment a business partner applies to its employees. A contractor who fails to investigate these matters may be fined for this negligence. The occupational health and safety authorities supervise compliance with contractor’s liability.

A staff representative is entitled to details concerning the amount of outside labour used and the identity of any agency or subcontractor, the worksite, the duties, the duration of any agreement concluded for the work, and the collective agreement and principal terms and conditions of employment that apply to employees performing agency or subcontracted work.