Hiring an expert

Three people talking and smiling at the office

Credits: Markus Pentikäinen / Keksi

The international expert must obtain a personal identity code immediately.

Have you found an international expert for your organization? Great! Next, delve into the steps of hiring.

Review the key aspects of the employment relationship with the international expert as early as possible since they may be completely unfamiliar with them. Such aspects include the employment contract, probationary period, taxation, and grounds for dismissal. You can demonstrate your skills as a leader of a diverse team by introducing the new employee to the Finnish work legislation. For detailed and in-depth information on the topic, see the International recruitment guide.

Employment contract

The employment contract sets out the duration and conditions of the employment relationship within the framework of labor legislation. Many sectors have a collective agreement. The international expert may not be familiar with the terms of employment in their own sector. Consequently, it is good to summarize the most important aspects in the job advertisement so that the applicant can investigate the topic in advance.

Write the employment contract in a language that both parties understand. A written agreement is recommended.

Send the employment contract to the new employee immediately after confirming the employment relationship. The employee may need the employment contract to apply for immigration documents, for example. We recommend including in the contract things you have agreed upon regarding moving to Finland, such as accommodation arrangements or expenses related to relocation.

Probationary period

The probationary period may not exceed six months. During this period, the employer can evaluate the employee’s suitability for the job and the employee can evaluate their suitability for the workplace.

It is good to point out to the employee that both parties can terminate the employment contract during the probationary period. If you as an employer find yourself in this unpleasant situation, handle it in a matter-of-fact and friendly manner and justify the decision well. The grounds for the termination must not be discriminatory or inappropriate in relation to the purpose of the probationary period. Learn more about responsible recruitment.

Credits: Markus Pentikäinen / Keksi

Personal identity code

International employees must apply for an official Finnish personal identity code as soon as possible. It may already be needed for the employment contract and at the latest for paying the salary. In Finland, the personal identity code is used, among other things, for authentication in various services and transactions with the authorities, and it is required when opening a bank account, taking out insurance, and opening a phone plan, for example.

When opening a bank account, the employee should also apply for online banking credentials, which are used for authentication in many public e-services. See the bank-specific instructions on, for example, the websites of the largest banks in Finland: Osuuspankki, Nordea or Danske Bank.

If a person has previously lived in Finland and they have been granted a personal identity code, they can still use it. The employer should ask the employee to report the official personal identity code to, for example, the payroll administration as soon as possible.

Personal identity codes are issued by Digital and Population Data Services Agency (DVV), the Finnish Immigration Service, and the Tax Administration. We recommend checking which is the appropriate authority for applying for the personal identity code. For example, a personal identity code issued by the Tax Administration does not entitle you to obtain a place of residence in Finland. For this purpose, you need a personal identity code issued by the Digital and Population Data Services Agency.

The prerequisite for obtaining a personal identity code is a residence permit, residence card, or the registration of the right of residence, which are applied for in the EnterFinland service. So start the process from there.

Taxation and Incomes Register

International employees may be new to the Finnish taxation system and they need support in becoming familiar with it. It is a good idea to offer personal assistance at the beginning of the employment relationship, as this also helps to build a good employer image.

You can arrange brief annual events on filling out the tax return. Simple written instructions also make it easier for international experts to become familiar with the Finnish tax system.

Mention that the employer is obliged to withhold tax from the employee’s income and that the employee must provide their tax card for this purpose. Moreover, mention that the employer reports the employees’ salaries and deductions to the Incomes Register, in which the employee can access their personal data.

The employer must verify whether the employee is a resident taxpayer or a non-resident taxpayer in Finland.

The employee must ensure that they submit their tax card or tax number to the employer in time. Remind the employee that if the tax card has not been submitted before the salary payment, the employer is obliged to use a 60% withholding rate for the payment.

Wage subsidies

You can get wage subsidies for hiring employees, and employment is not the only way to arrange the work. Other options include municipal subsidies, international EURES subsidies, subsidized employment, F.E.C. programs, internships, employee leasing, subcontracting, project work, scholarship work, cooperation with other companies, and Business Finland’s subsidies. Read more on our website or the International recruitment guide.

Credits: Markus Pentikäinen / Keksi

Termination of employment and furloughs

It is also good to inform the international expert of how employment is terminated and what furloughs are, so that they are aware of the legislation and practices. It is also important to provide the expert with the contact details of the TE Services. For example, the Finnish furlough system does not exist in other countries and companies are often just forced to dismiss their personnel directly. At the end of the employment relationship, the employer has a duty to explain to the employee dismissed what the grounds for termination of employment are and the alternatives.

Suspension or cancellation of recruitment

Sometimes the planned recruitment or employment relationship does not take place for unexpected reasons. Even if the employment contract has already been signed, it is good to know that there is no obligation to pay salary if the criteria for the employment relationship are not met. Such situations may arise if the person cannot come to Finland as agreed or their permit matters are not in order, for example. In these situations, it is advisable to consult a labor law professional.

Useful links

The Enter Finland online service of the Finnish Immigration Service enables you to apply for a residence permit or citizenship electronically.

InfoFinland.fi provides a lot of information about moving to Finland, both for EU citizens and those coming from outside the EU.

International recruitment guide

Check out our comprehensive International recruitment guide. The guide offers detailed information, instructions, and links for each step of the recruitment process.