Obligations of foreign companies operating in Finland

29.12.2021

Checkfin specialists • Checkfin Oy

Before going for the Christmas holidays, I published a thesis on my business studies, which deals with the topic: Obligations of the Liability Act and the Posting of Workers Act for foreign companies at different stages of work in Finland. Checkfin acted as the commissioner of the thesis, and the aim of the thesis was to study the obligations of foreign companies at different stages of their work in Finland. The aim was also to find out what obligations and requirements have been defined in the Liability Act and the Act on the Posting of Workers to Foreign Companies. The topic was examined for all industries.

Foreign companies that post their employees to work in Finland are usually ordered to do work as subcontracting or temporary rental work. In those cases, the Liability Act obliges the company ordering the work (buyer) and the company performing the work (contracting partner) to perform certain checks before concluding an agreement. The Posting of Workers Act applies to employees who are posted from another country to work in Finland through subcontracting, leasing, or internal company transfer.

I have been working in the construction and energy industry for eight years and during that time I have become very familiar with the obligations imposed by different laws in the construction industry or similar activities in Finland. I’m deep in the subject and at first, it was difficult to break away from dealing with it from a general perspective instead of a construction perspective. At first, I thought that since I know the obligations imposed by these laws in practice, it would be easier to do the research work. But in the end, dealing with the subject from a general perspective without a more specific area, proved more challenging. Having the knowledge of how the laws are applied in practice had to be put to the background for a moment, in order to highlight in the theoretical part the obligations as defined by law. In reality, the inspectors of the supervising authority always interpret the law and issue statements on a case-by-case basis. As a result, guidance on compliance in practice is not always simple. Although I had a strong background at the beginning of my research, a learning process took place during the research process, and my expertise in the subject deepened further.

Ulkomaisten yritysten velvollisuudet Suomessa toimiessa

In the conclusion of the research work, it can be stated that the management of a foreign company needs to pay attention to the obligations imposed on the foreign companies, defined in Finnish legislation, and at which stage of the work the legislative measures need to be performed. If the management of a foreign company would be aware of the legal scope in place in Finland and the dates related to the implementation of various measures, it would be possible for them to plan the resourcing of work to meet the real need.

As a product of the thesis, I compiled checklists for the management of a foreign company to be utilized in different stages of the work. Checklists can be used in all industries in Finland. Checklists help the management of foreign companies understand their obligations and guide them to act accordingly.

A topic for further research arose in the thesis; clarification of obligations for foreign companies operating in the construction sector in Finland. Checkfin’s soon-to-be-launched online training Responsibilities and obligations in the construction industry in Finland address this need, and the online training course provides a comprehensive guide to the obligations in various areas of construction, including obligations for foreign companies. This online training course is a great continuation of my research.

Finally: The year 2021 is coming to an end, but looking at 2021, I am pleased with my achievements during it. I participated in the largest construction project in Finland and the project was successfully completed. I founded a company together with my business partner Marika. I graduated with a vocational degree in entrepreneurship and also got my thesis published. The year 2021 has been a great year in every way! I also believe that 2022 will bring good things to us all and we will learn something we have not been able to do before. After all, numbers 2 and 22 always brought me good luck. I want to wish everyone a very awesome year 2022!

Ps. If you are interested and want to read my thesis, here is a link to it (it is written in Finnish): https://www.theseus.fi/handle/10024/512973

Marianja Huber

Marianja Huber

Checkfin specialists • Checkfin Oy