Finland implements EU posted worker directive

IMPACT – MEDIUM

What is the change? Finland will begin enforcing the 2014 EU posted workers directive this week, imposing new requirements on companies that send workers to Finland for temporary assignments.

What does the change mean? Effective Friday, employers must notify the Occupational Safety and Health Administration before a posted worker begins an assignment. Companies must also appoint a representative in Finland to act as a liaison between the sending company and Finnish authorities on questions related to the assignment. Companies must retain employment-related documents, including contracts, pay slips and proof of wage payments in Finland and must make them available for inspection upon request.

• Implementation time frame: Sept. 1.
• Visas/permits affected: Posted worker notifications.
• Who is affected: Companies posting employees to work in Finland, whether they are located in or outside of the EU/EEA.
• Business impact: The changes add new administrative steps to the process of sending or receiving posted workers in Finland.

Background: Finland adopted the new rules to comply with the EU’s 2014 enforcement directive on posted workers.

Under Finland’s new rules, notification must be submitted the Occupational Safety and Health Administration before a posted worker begins an assignment. The notification process includes submitting an online form and providing (1) details about the sending company, including company contact information, foreign tax ID number and information on a person or persons in Finland who can act on the sending company’s behalf; (2) details and contact information about the hosting company; (3) details and contact information on the developer and/or primary contractor in cases involving construction workers; (4) the number of posted workers a company is sending; (5) start dates and estimated duration of assignments; (6) the location where work will be carried out; and (7) the branch or office in which the posted worker will work.

Sending companies must also update information with the Occupational Safety and Health Administration if the terms of the posted worker’s assignment change significantly.

BAL Analysis: Affected companies should make sure they follow Finland’s new posted worker procedures and documentation requirements. Failure to follow procedures correctly could result in penalties of between €1,000 and €10,000. Questions about specific cases should be directed to a BAL professional.

This alert has been provided by the BAL Global Practice group and our network provider located in Finland. For additional information, please contact your BAL attorney.

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