1. Making formal work more attractive in Finland
Jan Hjelt
Ministerial adviser

2. 1 THE GOVERNMENT’S DECISION-IN-PRINCIPLE
A strategy to step up the activities to prevent grey economy activity and white-collar crime for
Includes 22 projects
Enhacing Contractor´s Liability Act
Wages to bank legislation
Introduction of tax number and monthly notification procedure.
Jan Hjelt

3. 1 The Contractor´s Liability Act
Entered into force at the beginning of 2007
Construction sector legislation in september 2012
The objetives:
To promote equal competition
To ensure minimun terms of the employment relationship
To prevent the negative effects of the grey economy
Main instruments:
Obligation to check
Negligence fee
Jan Hjelt

4. Obligation to check
The contractor must have the information before concluding a contract.
The preliminary tax register, the employers' register and VAT (value-added tax) register
An extract from the Trade Register
A certificate or report of tax payments
A certificates confirming that pension insurances have been taken out
Information on the collective agreement
Accident insurance (in construction sector)
Jan Hjelt

5. The negligence fee The negligence fee will be charged:
If the contractor has neglected their obligation to check
If the contractor has signed contract with an entrepreneur who has been barred under the Act on Business Injunctions
If the contractor has signed a contract, despite the fact that they should have understood that the contracting party had no intention of fulfilling their statuatory obligations
Minimun EUR and maximun EUR.
Increased negligance fee minimum EUR and maximum EUR (points 2 and 3, only in construction sector)
Jan Hjelt

6. Enhancement of The Contractor´s Liability Act (January 2015)
Increasing negligence fee
Negligence fee minimun EUR maximum EUR
Increased negligence fee minimum and maximum EUR
Widening the scope of Increased negligence fee
Increased negligence fee will apply in all sectors
Expandin of Obligation to check
Occupational health care
Detalied rules on posted workers
Jan Hjelt

7. 2 Wages to the bank legislation
Entered in to force July 2013
Wage must be paid to financial institution appointed by the employee.
Can be paid in cash only if it is necessary because of compelling reasons.
When the payment is made in cash the employer shall have a receipt signed by the employee verifying the payment.
Employer has obligation to attach the receipt to the bookkeeping
Violation of obligations is penalized
Jan Hjelt

8. 3 Tax number and monthly notification procedure (construction sector)
Obligation to use Tax Number in construction sector (September 2012)
Every employee must ware tax number (photo ID) in construction site
Monthly notification procedure (July 2014)
contract information, (contractor who order a construction service) must report details of the contract (including contracting parties, total amount, and duration) every month to the Tax Administration
employee information, (The main contractor) details on all people working at a shared construction site, regardless of the type of their employment relationship or employer. Employers has obligation to inform the main contractor.
Jan Hjelt

9. Thank you!