Sending Employees to Finland
September 2019

Sending Employees to Finland

The special requirements relating to international assignments should be taken seriously and planned carefully. Due to the particular situation of the posted employee, the existing employment relationship cannot remain unchanged. At least the following issues should be taken into consideration and agreed beforehand:

Remuneration and fringe benefits

Duration of the assignment

Hierarchical structure and direction right related to work performance

Reintegration of the employee after returning from the post

Applicable law

The particular terms and conditions of the assignment should be recorded in a specific contract. Several options are open in respect of such an agreement:

The whole employment contract may be transferred to the Finnish subsidiary.

Alternatively, the existing contract may be supplemented by an assignment agreement.

Finally, the existing employment relationship may be suspended for a certain period and replaced by a new agreement that regulates the working conditions for the duration of the assignment abroad.

The way the employment relationship is arranged also has taxation and social security implications for the employee. For example, if an employee wants to remain within his or her home country’s social security and pension system, it is usually necessary for some form of employment relationship with the posting company to be maintained throughout the assignment.