You can obtain employees via staffing companies. Leased employees are not on your company’s payroll, but they carry out work for your company.
When your company uses leased workforce, it must enter into an employee lease agreement with a staffing company. The staffing company either leases one of its existing employees or recruits an employee that meets your requirements and leases them to your company.
The staffing company acts as the leased employee’s employer. Thus, the employment contract is concluded between the employee and the staffing company. The staffing company pays the leased employee’s salary and takes care of all other employer obligations.
However, the leased employee carries work on behalf of your company and usually within your company’s premises. Your company’s task is to instruct, guide and supervise the leased employee. Your company must compensate the staffing company in compliance with your agreement.
If you wish to recruit the leased employee to your company after the end of the lease period, you may have to pay a recruitment fee to the staffing company.
If your company wishes to use leased employees, contact a staffing company. Provide them with a description of the job and your requirements for the employee. In general, staffing companies take care of the entire recruitment process on behalf of your company. Note that the collective agreements of some industries set restrictions on the use of leased employees.
Conclude a written agreement with the staffing company. The agreement should define, among other things, the leased employee’s assignments and the amount of compensation your company pays to the staffing company. The agreement must comply with the industry’s general terms of agreement, and it cannot reduce the leased employee’s rights.
Even though the staffing company acts as the leased employee’s employer, your company has the right to direct and supervise the work they perform. Treat the leased employee as if they were one of your own employees.
When you are using leased employees, your company and the staffing company providing them are jointly responsible for their occupational safety and health.
The staffing company is responsible for observing the provisions of the Occupational Safety and Health Act applying to employers, for providing the employees with occupational health care and for giving them general occupational safety and health guidance.
Your company is responsible for the employees’ daily occupational safety and health, for familiarising them with its content and for ensuring that work can be carried out safely.
Before the start of the work, you must notify the staffing company of the vocational skills required in the work and its special characteristics so that the staffing company can check the employees’ vocational skills, experience level and suitability and provide its own occupational health care with the necessary details of the employees’ working conditions.
You must also notify your own occupational health care provider and occupational safety representative of the start of the leased work.
If your company wishes to use leased employees, it must, in accordance with the Contractor’s Liability Act (1233/2006), obtain from the staffing company the following documents that may not be older than three months:
- Trade Register extract
- Certificate of paid taxes
- Certificate stating that employee pension insurance has been taken out and that pension insurance contributions are paid up or a statement on a payment agreement concerning outstanding pension insurance contributions
- Report on whether the staffing company has registered with the Prepayment Register, Employer Register and the VAT Register
- Report on the applicable collective agreement or central terms and conditions of employment
- Report on how occupational health care is provided
- If your company operates in the construction industry, a report on taking out an accident insurance is also required
However, if your company leases an employee for a maximum duration of 10 working days, there is no legal obligation to obtain the aforementioned reports and certificates. Note that work is considered uninterrupted if the working periods are consecutive or they are interrupted only for short periods of time.
If you do not obtain the reports and certificates in time or at all, you may have to pay a penalty fee of up to tens of thousands of euros.
Keep the statements and certificates for at least two years after the end of the lease period.
You must also obtain the same information if you lease an employee from a foreign staffing company. In addition, you must contact the Finnish Tax Administration to establish whether you are obligated to report the use of foreign leased employees and to withhold tax at source for the paid compensation.
Finnish laws, labour agreements and other regulations and practices apply to foreign leased employees.
Request the leased employee to provide you with a certificate of their right to work in Finland. Take a copy of the employee’s passport. If the leased employee does not have a right to work in Finland, instruct them to apply for a residence permit for an employee and fill the application’s appendix form.
Provide the TE Services with a report on the leased employee’s terms and conditions of employment. Inform a representative of your personnel such as a shop steward about the employee’s name and the applicable collective agreement.
Ensure that the company posting the employee submits a Notification of Posting of Workers to the Occupational Safety and Health Authority. Ensure also that they appoint a Finland-based company representative who can be reached during the entire duration of the leased employee’s posting.
If more leased employees are posted to your company after commencing the work, request a report on their social security from the staffing company before the employees start to work.
Provide to the staffing company with the information it requires for fulfilling its employer obligations.
Deliver the required information on the staffing company and its representative to the Tax Administration not later than within the month following the month in which the first leased employee started to work.