Description
On 01 July 2023, a new amendment on the Employment Contracts Act in Finland which aims to establish new criteria to distinguish between self-employment and contractual employment relationships has come into force.
This legislative amendment has originated in a proposal prepared by a sub-group on promoting employment of the Ministry of Economic Affairs in Finland. Prior to July 2023, the Employment Contracts Act left room for interpretation when it comes to new forms of employment, as the Act only included basic criteria for defining employment relationships. However, these basic criteria did not take into account how work has evolved, especially through the platform economy. To reduce ambiguity, new assessment criteria can now be applied to cases to understand the nature of the legal relationship notwithstanding how the legal relationship has been classified:
- Terms of employment
- Conditions under which the work is performed
- Objective of the parties concerning the nature of the legal relationship
- Other factors affecting de facto status of parties in a legal relationship
The overall consideration of these aspects shifts the focus to the actual working conditions. This amendment aims to safeguard the rights and obligations of the different parties involved, and is to benefit employers, employees, as well as authorities and other stakeholders. Phenomena such as bogus self-employment can, therewith, be targeted more precisely.
- Keywords
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social protection,
taxation,
employment status,
regulatory changes
- Actors
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Government
- Sector
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No specific sector focus
Sources