More and more workers want to work in other countries, and many Finnish companies operate internationally. Some employees might want to move to a different country where their company also has offices. What does this mean for the company? And what if the employee goes to a country where the company doesn't have an office?
In this article, you will learn about employee responsibilities when posting workers abroad.
Notification of posting workers
When sending an employee to work within the EU, EEA, or a country with a social security agreement, they will need an A1 certificate. This certificate demonstrates that the employee is still covered by Finnish social security during their overseas assignment, preventing the company and the employee from making duplicate insurance payments.
If the assignment is in a third country, sending an employee to work outside the EU requires notifying Kela (Social Insurance Institution of Finland) about the start and end of the work abroad.
Social security for employees during work posting
When people relocate from Finland to another country, they typically lose their eligibility for Kela benefits if they stay abroad for more than six months. However, posted workers, civil servants, and development cooperation workers may retain their eligibility for Kela benefits for longer.
The entitlement to Kela benefits of a person leaving for local employment in another EU or EEA country or Switzerland usually ends when work in another country begins, regardless of the duration of the work.
International Taxation
The employer needs to establish the country in which the employee is liable to pay taxes and whether the salary is exempt from taxes in Finland according to the six-month rule. It is recommended that the employer seek advice from tax experts on international taxation issues.
As part of our Easy Employment services, Finland Relocation Service provides international tax guidance in collaboration with our partners.
Employee's settling in a new country
When someone moves to a new country for work, it's important to help them and their family adjust to the new place. It can be hard to adapt, and if things don't go well, it could even lead to them losing their job. Relocation services can help with things like getting the right paperwork, settling into daily life, and understanding the new culture.
In international jobs, it's critical to make sure you have the right permission to work and live in a new country. FRS and our partners ensure that everything is done correctly worldwide.
It's important to know that things can be very different in different countries, like housing, schools, official rules, and things to do in your free time. With our global network, we can help with everything in each country you're moving to
EOR Services -Posting an employee to a country where you don’t have a business unit
If you are posting an employee to a country where your company does not have a branch, you can use the EOR (Employer of Record) service. The EOR service provider acts as the formal employer of the employee abroad and handles payroll administration, employee benefits, withholding taxes, and local employer reporting on behalf of the company. In practice, the employee works under your company's management and supervision in a similar way as in Finland.
We operate as an EOR service provider in ten countries, and with the help of our partners, we can offer EOR services almost anywhere in the world.
Posting workers in Finland
When an employee is sent to Finland from another country for work as a subcontractor, internal transfer, or temporary worker, the foreign company sending them must handle the necessary notifications.
Finland Relocation Services offers relocation assistance for people moving to or leaving Finland for another country. With our wide international network, we have partners in over 120 different countries, allowing us to provide smooth relocation services worldwide.
