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How to hire remote employees in
Hiring in Finland? That’s excellent. There are two options: You can hire your talent as employees, or you can hire them as contractors. Because of Finland’s labor law structure, there are benefits and disadvantages to each approach.
If you want to successfully hire in
Finland
, you have two options:
Laws about hiring contractors are significantly more simple in
Finland
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Finland
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Finland
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Finland
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Finland
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Finland than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Finland.
Annual leave is calculated from the period of April 1st through March 31st of the following year. Vacation is typically taken between May 2 -September 30 (4 weeks in the summer and 1 week in the winter).
Employees earn 2 vacation days per month or 2.5 days per month for continuous employment of over a year. Employees who have at least 15 years of service receive 3 vacation days per month.
There are 10 public holidays.
Employees who have been employed for at least a month receive full sick pay for 9 working days. After 9 days, the employee must provide a medical certificate from a doctor.
Pregnant employees are allowed to choose when maternity leave begins with a maximum of 50 days before the expected due date. Once maternity leave begins, the employee receives benefits for 105 working days (Monday-Saturday, excluding holidays).
The employee must notify the employer and apply for maternity pay at least 2 months before starting maternity leave.
Fathers are given 54 days of paternity leave, with a maximum of 18 days to be used at the same time as the mother. The remaining days are to be taken in more than two periods.
Both parents are allowed to take parental leave with benefits up to 158 days and ends when the child is approximately 9 months old. Parents are to agree when each takes the leave since it cannot be taken by both simultaneously.
None.
None.
None.
An employer must provide valid reasoning for the termination of an employee. If an employee has performed poorly, the employer must first receive a warning and an opportunity to improve before being terminated.
An employee must provide written notice to the employer and honor the notice period before ending work.
Fixed-term employment cannot be terminated.
Notice period when the employer initiates the termination:
Notice period when employee initiates the termination:
There is no statutory severance pay unless the employee’s termination is unjustified, or the employer has decided voluntarily to provide it.
6 months.
A full-time workweek is 40 hours, or 8 hours per day.
Overtime work requires the employee’s consent for each overtime period, and to be considered overtime, must be under the employer’s initiative and approval. Overtime hours cannot exceed 138 hours over a 4-month period and 250 hours annually. Additional 80 hours of overtime may be agreed upon if it is necessary.
Overtime increases pay to the rate of 150% of the regular pay for the first two hours and 200% for the following hours. Weekly overtime is paid at the rate of 150% of the regular pay. Any work performed on Sunday is compensated at 200%.
Overtime pay can differ depending on collective agreements.
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