Employer of Record (EOR) in Finland in 2024

Hire Globally, Pay Locally, Expand Effortlessly

We serve as your Employer of Record in Finland. This country, celebrated for its innovative economy and high quality of life, presents substantial opportunities for international businesses seeking new markets. However, the complexity of Finland’s regulatory environment, including evolving labor laws and tax regulations, can pose challenges beyond simply navigating them in the Finnish language. An Employer of Record (EOR) in Finland can be your strategic local partner, facilitating smooth market entry and ensuring ongoing compliance with all necessary regulations.

Want to have a Team in Finland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to Have a Team in Finland TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in Finland Gets You Up and Running in Only 3 Steps

Step 1: Initial Planning & Needs Assessment

Your collaboration with an Employer of Record in Finland, such as INS Global, starts with a detailed consultation to understand your business objectives. This involves discussing the number of local employees required, their roles, and your expansion timeline, allowing the Employer of Record to customize their services to meet your specific needs.

Step 2: Streamlined Setup, Recruitment & Onboarding

Whether you are building a new team in Finland or transferring existing employees, an Employer of Record handles all legal processes by legally hiring staff locally on your behalf. This includes managing visas and work permits, organizing payroll, contract management, and ensuring full compliance with Finnish labor regulations.

Acting as your legal employer from the start, the Employer of Record eliminates the need for you to establish a local entity, instantly saving you valuable time and resources.

Step 3: Ongoing Management & Compliance Assurance

Once your employees are operational in Finland, an Employer of Record oversees ongoing HR and payroll functions. This includes processing salaries, managing employee benefits, and ensuring compliance with health insurance and social security contributions.

Employer of Records continue to act as the HR interface between you and your Finnish team as your projects grow and change, thereby handling administrative tasks, addressing employee concerns, and allowing you to focus confidently on business growth.

The Advantages of a Finnish Employer of Record

Top-Class Setup

An Employer of Record helps you navigate the complexities of Finland’s tax system and labor laws, simplifying the setup process and ensuring compliance from the outset.

Compliance Management Expertise

Finland’s regulations can be intricate, but Employer of Records in Finland possess the expertise and experience to keep your business compliant with local tax laws, Finnish labor law regulations, and social security contributions.

Risk and Liability Assurance

By acting as your legal employer in Finland, EOR experts reduce the risks associated with employment regulations and ensure compliance.

Core Business Objective Focus

Delegating HR tasks such as recruitment, payroll processing, and tax management to your Employer of Record allows you to concentrate on core business activities.

Cost Efficient Structures

Employer of Record services can be more economical than establishing a local subsidiary, especially for smaller teams or temporary needs, by helping you avoid initial incorporation costs and ongoing administrative burdens like hiring in-house HR staff.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

Choosing Between an Employer of Record vs. Company Incorporation in Finland

While setting up a subsidiary in Finland is often considered the default option for local expansion, opting for an Employer of Record offers several comparative advantages:

Speed – The business setup process in Finland is expedited with an Employer of Record like INS Global, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks or even days.
Compliance – Both Employer of Records and subsidiaries must comply with Finnish tax laws and labor regulations when employing local staff. However, Employer of Records already have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
Cost – For small teams or temporary needs, Employer of Record services are often more cost-effective than establishing a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, Employer of Records offer specialized streamlining options that help efficiently integrate new markets into multi-country payroll systems.
Control – While incorporation offers full control over HR, finances, and operations, Employer of Records can provide the same level of organizational control over your workforce while reducing your administrative responsibilities and liability.

5 Essential Factors for Selecting the Best Employer of Record in Finland

Choosing the right Employer of Record in Finland is critical for successful market entry. Consider these five key factors:

Industry Experience and Track Record – Look for an Employer of Record in Finland with proven experience and a strong industry reputation like INS Global. Client testimonials and industry accolades can be indicators of reliability.
Comprehensive Service Offerings – Ensure the Employer of Record in Finland provides all necessary services or can customize their offerings to suit your needs, including visa and work permit support, payroll processing, and tax compliance.
Scalability Options – Opt for an Employer of Record in Finland that can scale its services as your business grows. Their staff should be capable of managing an increasing workforce and evolving business requirements.
Clear Communication and Transparency – Choose an Employer of Record in Finland known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to essential information.
Cost Structure Transparency – Compare the pricing models of different Employer of Record providers in Finland. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your Employer of Record in Finland.

Finland: Labor Law Overview

Employment Contracts – Contracts must be in Finnish or English and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record in Finland ensures your contracts comply with Finnish labor law and protect your interests.
Probationary Periods – Probation periods in Finland typically last up to 6 months. An Employer of Record in Finland can help set up probation periods that comply with local laws while allowing you to assess new employees.
Working Hours – Standard work hours in Finland are usually 40 hours per week with limits on overtime. Employer of Record services assist in tracking work hours and ensuring compliance with overtime regulations to prevent penalties.
Paid Leave – Employees in Finland are entitled to various types of paid leave, including public holidays, annual leave, sick leave, and maternity leave. An Employer of Record manages leave requests and ensures proper compensation according to Finnish labor laws.
Health Insurance and Social Security – Both employers and employees contribute to health insurance and social security schemes. Your Employer of Record handles these contributions as part of the payroll process.
Severance Pay – Severance pay is legally required in certain situations, such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.

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Recruitment Agency in Finland

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FAQs

How does an Employer of Record assist in entering the Finnish market?

An Employer of Record handles all legal, HR, and compliance tasks when employing workers abroad, allowing businesses to enter the Finnish market quickly without needing to establish a local entity.

What are the financial benefits of using an Employer of Record in Finland?

Using an Employer of Record in Finland can be more cost-effective than setting up a local subsidiary, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Can an Employer of Record manage visa and work permit processes in Finland?

Yes, a Finnish Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

What types of businesses benefit most from Employer of Record services in Finland?

Employer of Record services are beneficial for businesses of all sizes, especially those seeking rapid market entry, cost savings, and reduced administrative burdens.

How does an Employer of Record ensure compliance with Finnish labor laws?

Employer of Records in Finland have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Finnish labor laws.

What level of control do I retain over my employees when using an EOR in Finland?

While the Finnish Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.