Do your work sites already know what risks are associated with inadequate supervision of legal requirements?
Several laws and regulations must be observed on a shared construction site, aimed at promoting site safety, ensuring the fair treatment of workers, and making sure that construction does not cause harm to the surrounding environment. Understanding and complying with these laws is extremely important for the main contractor of a construction site, who bears overall responsibility for the execution, safety, and quality of the project. Do you already know what legal requirements are associated with the use of external workforce and occupational safety management, and what risks inadequate supervision of these can pose for the main contractor?
The main contractor's responsibilities on a construction site
Under the Act on the Contractor's Obligations and Liability, which aims to combat the grey economy, the main contractor must ensure that contractors working on the site have fulfilled their social obligations and that their employees have the necessary permits and rights to work in Finland. It must also be possible to verify that the subcontractor has properly handled the employment, social security, and occupational healthcare agreements and payments for their employees.
Another key piece of legislation in the construction sector is the Occupational Safety and Health Act, which aims to prevent accidents and occupational diseases and to promote a healthy and safe working environment. For this reason, the main contractor must ensure that site workers have received appropriate induction and are operating according to shared rules.
What are the consequences of neglecting obligations?
If the main contractor neglects its obligations in managing external workforce on a construction site, it can lead to the materialisation of many site risks, such as:
Grey economy controls fail: If the right to work and residence permit of a subcontractor or their employees are inadequately monitored, people residing illegally in the country or without the right to work may end up on the site. Ambiguities related to pay are also common, particularly in the case of foreign workers, and as a result, underpayment and tax evasion may occur in the subcontracting chain without the main contractor's knowledge. Read more about underpayment on construction sites!
Accident risk increases: Inadequate induction and occupational safety supervision can lead to workplace accidents and hazardous situations, as workers without induction are not familiar with the site's safety regulations or practices. Site safety may deteriorate due to inadequate supervision, which in the event of accidents can cause increased costs and delays. In addition, the Regional State Administrative Agency inspects all sites where a site manager convicted of an occupational safety offence is working. Read what the consequences of repeated safety deficiencies are!
Quality deteriorates: If workers are not adequately inducted, they may not be able to carry out their tasks correctly or to a high standard. Quality deterioration resulting from a lack of documentation also increases the need for remedial work, which can cause significant delays and additional costs for the project.
Liability increases: The main contractor's liability grows if subcontractors' obligations are not properly monitored. The main contractor may, for example, become the subject of a random inspection by the Regional State Administrative Agency or the Tax Administration, and if shortcomings come to light, may be required to compensate for damages and respond to sanctions imposed by authorities.
Workers' rights are neglected: Unfair treatment can lead to employment-related disputes, such as disagreements over pay, working hours, or collective agreements, which affects wellbeing at work and consequently the quality of work. Inadequate working conditions can also cause conflicts and strikes, affecting workers' motivation and commitment. Read here about what fines a company operating in Lahti received for employment discrimination.
Reputational damage: The main contractor's reputation can be tarnished if stakeholders, clients, or authorities detect negligence on the site. Negative publicity can weaken the company's competitiveness and affect future opportunities to win new contracts.
When the risks associated with inadequate supervision of legal requirements materialise, they are extremely unpleasant from the main contractor's perspective, as under the law the work client is responsible not only for their own employees but also for the actions of contractors throughout the entire subcontracting chain and their employees. Consequently, negligence can lead to fines, criminal liability, and reputational damage directed not only at the subcontractor acting unlawfully but also at the site's main contractor. In the worst case, serious negligence can also lead to the closure of the site and even a business ban. Through proactive action and supervision, the main contractor can manage and eliminate these risks.
Avoid the tabloid headlines and ensure well in advance that the risks related to external workforce management and occupational safety do not materialise on your site!
Book a free onboarding process assessment now and make the management of legal obligations proactive and smooth!
We offer new customers a completely free assessment, in which we go through your current external workforce onboarding process together and explore how Zeroni can improve the efficiency of your projects. If you are interested in the assessment, get in touch with our sales team and let's get your workforce management and safety processes in order!
