When in Rome do as the Romans do
Foreign people who come to Finland to work know the employment contract they have made, but usually have no
idea which country’s laws are applied to their contracts.
The Rome convention sets conditions for employment
The most common way for a foreign person to become employed in Finland is that he/she moves to Finland and signs a contract with a Finnish company. In this case the newcomer is in equal position with their fellow workers. They are working under Finnish labour legislations.
However, there are many different possibilities in international employment relationships. The Rome convention, which
Finland also has pledged to comply with, sets rules for international contracts. Based on the convention the employer and the employee can agree on which country’s laws are to be followed. If there is no agreement on this, the principal is that
the labour laws of the country where the work is carried out are applied.
Even if a foreign worker in Finland has agreed some other country’s laws to be applied in their employment contract,
these clauses may be invalid. Agreement can not violate the rights the employee would have based on Finnish legislation
without agreement. If the foreign worker has come to Finland for a specific term, the posted workers act is applied in certain cases. The act gives legal protection so that Finnish labour laws must
be followed.
Temporary residents and the employment law
The international employment is so complex that even when an employee is protected by the Rome convention, in some
cases another country’s labour legislations may be applied even if it would weaken the employee’s rights. The EU has compiled
a directive to regulate situations regarding posted workers. Due to this directive the Finnish posted worker’s legislation has been established. It regulates situations when an employee that carries out their duties in Finland is protected by the Finnish labour legislations even in situations where the employee and the employer are both foreign.
This law protects the employee when he/she has come to Finland to work for a specific length of time and the reason for
residing in Finland is the contract made by a Finnish company. For instance a Finnish company may have a contract with a
Chinese subcontractor which has an effect of a Chinese worker having to carry out their duties in Finland. The foreign
worker would now be tied, just like their Finnish colleagues, to the Finnish legislations regulating their rights and responsibilities,
the wages, the annual leave regulations, working hours, etc.
Nowadays, it is common that employees working for international companies relocate to another country within the same company. ERTO is often contacted by people who have come to Finland
in this manner. If the relocation is temporary, the law regulating posted workers is applied i.e. the Finnish labour legislations
are applied. The same applies in the case where the employee is hired and sent to Finland from a foreign recruitment agency.
If in doubt – ask!
It’s easy to see the difficulty in understanding and applying the international labour laws and why foreign members of ERTO
so actively contact us in issues regarding employment environment and legislations. But that’s what we are there for.
Next time you find yourself talking to a colleague that has come to Finland from abroad, make sure to mention ERTO!
Jarkko Pehkonen