Date
1 July 2023

Tag

Active

Country
Finland Finland
Geographical scope
National
Type
  • Type

    Provision of insurance and social protection

    Legal
  • Type

    Employment contract

    Legal
  • Type

    Working conditions

    Legal
View Initiative

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:

  1. Terms of employment
  2. Conditions under which the work is performed
  3. Objective of the parties concerning the nature of the legal relationship
  4. 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.


Additional metadata

Keywords
social protection, taxation, employment status, regulatory changes
Actors
Government
Sector
No specific sector focus

Sources

Citation

Eurofound (2023), Amendment to Finnish Employment Contracts Act, new criteria for distinction between self-employment and dependent employment (Initiative), Record number 4279, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/amendment-to-finnish-employment-contracts-act-new-criteria-for-distinction-between-selfemployment-and-dependent-employment-110042.