The construction and industrial sectors are industries where international workforce plays a significant role. However, when using foreign workers, various obligations and regulations must be taken into account as part of combating the grey economy and monitoring workers' rights. In this blog post, we explain in more detail what obligations the main contractor must take into account when using foreign workforce.
Right to work — what does it require?
It is the main contractor's responsibility to ensure that foreign contractors have fulfilled their obligations under the Act on the Contractor's Obligations and Liability and that foreign workers have a valid right to work in Finland for the relevant job. Thanks to EU legislation on the free movement of workers, however, citizens of EU and EEA countries may work in Finland without a separate residence permit. When arriving at the site, a foreign worker must also have a photo ID and a tax number.
What documents must the main contractor check from a foreign worker?
It is the main contractor's obligation to collect the appropriate documents from foreign contractors and workers before they begin working. These documents include, for example, copies of workers' valid passports or other travel documents, the posted worker's A1 certificate, and a residence permit if one is required. In addition, the main contractor must verify the worker's identity and retain all documents for the authorities.
The worker must apply for a residence permit if they are not a citizen of an EU or EEA country. A residence permit is granted to a foreign worker for a specific period of time and entitles the worker to reside and work in Finland in a specific job.
A residence permit is not required, however, if all of the following conditions are met:
the worker holds a residence permit of at least one year in another EU/EEA country
work in Finland lasts no more than 90 days within a 180-day period
the foreign employer's contract on the work site lasts a maximum of 180 days
the employment relationship continues after the period of work in Finland ends
the permit entitling the person to work in another EU country remains valid for at least one day after work on the site ends
Responsibility for verifying the right to work and regulatory reporting
If workers from a foreign company or posted workers are working on the main contractor's site, the main contractor must verify the right to work of these workers arriving from abroad. For Finnish companies, no such verification is required, even if the workers are foreign nationals. However, it is advisable for the main contractor to monitor the operations of all their subcontractors to ensure that the workforce they use also has the right to work in Finland, even though the actual verification responsibility for this lies with the Finnish subcontractor.
What information do authorities require to be reported on foreign workers?
The main contractor must maintain a worker register and notify the tax authority of information on workers who have worked on the construction site. Information subject to the reporting obligation includes, for example, the worker's name, personal identity number or date of birth, tax number, start and end date of employment, pay and remuneration details, and information on the nature of the worker's employment relationship. The main contractor must ensure that this information is reported to the tax authority accurately and on time.
Why is it worth paying particular attention to the supervision of foreign workforce?
A commitment to combating the grey economy creates a reliable reputation for the main contractor, reduces risks and financial losses, and creates opportunities for collaboration in public sector projects where the requirements for partners are high. These benefits can have a positive impact on the company's success, project throughput times, and consequently growth and long-term business continuity.
Pro tip! Grab a handy infographic on obligations related to foreign workers here! Download the attachment from this link.
Are your work sites already monitoring workers' right to work digitally, or is site management's time being spent on paperwork and waiting? Get in touch with our sales team and we'll help you get started with digitalising the worker onboarding process!
