Finland is recognized as one of the world’s most innovative and competitive economies, consistently ranking high in education, digital infrastructure, and quality of life. Known for its strong tech ecosystem, Finland is home to world-class companies like Nokia, Supercell, and Rovio, and has become a European hub for startups in gaming, software development, and clean technology. Helsinki, Espoo, and Tampere are key talent hubs, attracting global investors and multinational corporations.

The Finnish workforce is highly educated, with one of the highest rates of tertiary education in Europe. English proficiency is excellent, especially among white-collar professionals, making Finland an attractive location for global hiring. Employees bring strong expertise in engineering, IT, biotech, gaming, and sustainable technologies, backed by a culture that values innovation, collaboration, and work-life balance.

At the same time, Finland’s employment landscape is governed by detailed collective bargaining agreements (CBAs), employment protections, and tax regulations. Setting up a legal entity in Finland requires compliance with corporate registration, social security, and labor laws, often delaying market entry.

Many global businesses choose to simplify entry into the Finnish market by partnering with an Employer of Record (EOR). With Gloroots as your Employer of Record in Finland, companies can hire talent quickly and compliantly, while we manage payroll, taxes, and benefits in line with Finnish labor law.

Looking to hire in Finland? Contact us to explore how Gloroots can help you enter the market with speed and compliance.

What are the key facts about Finland’s economy and workforce?

Finland boasts one of Europe’s most advanced, innovation-driven economies, underpinned by its highly skilled workforce and cutting-edge digital infrastructure. While historically known for manufacturing and telecommunications, the country is now a leader in clean technology, gaming, IT services, biotechnology, and renewable energy.

The Finnish workforce is one of the most educated globally — over 40% of adults hold tertiary education, and the country produces a steady stream of STEM graduates from universities such as the University of Helsinki, Aalto University, and Tampere University of Technology. Strong public investment in research and development supports innovation across sectors.

English proficiency is very high among professionals, with Finland ranking consistently in the top 10 countries worldwide for English skills. This, combined with a transparent regulatory environment and a culture of equality, makes Finland particularly attractive for global employers seeking white-collar talent.

Key hubs include Helsinki (tech, finance, startups), Espoo (engineering, R&D, gaming), and Tampere (manufacturing and industrial technologies). The government also supports entrepreneurship with initiatives that attract foreign professionals and encourage cross-border business growth.

With Gloroots as your Employer of Record in Finland, businesses can access this deep talent pool without needing to establish a local entity.

What is the work culture and talent pool like in Finland?

Finland’s work culture is defined by equality, transparency, and collaboration. The country is widely recognized for its flat organizational hierarchies, where decision-making is shared, and employees are encouraged to voice opinions freely. Trust, punctuality, and independence are valued, and workplace interactions are typically direct and respectful.

Work-life balance is a cornerstone of Finnish culture. Employees expect reasonable working hours, flexible arrangements (including remote work), and generous leave entitlements. Finland consistently ranks high on global quality-of-life and employee satisfaction indices, making it an appealing environment for professionals seeking stability and career growth.

From a talent perspective, Finland offers world-class expertise in IT, gaming, software development, biotech, engineering, and sustainability-focused industries. The strong pipeline of STEM graduates and ongoing public investment in digitalization ensures a steady flow of highly skilled professionals.

Key hiring hubs include:

• Helsinki — financial services, technology, and startups
• Espoo — engineering, ICT, and gaming (home to Supercell and Rovio)
• Tampere — manufacturing and industrial innovation
• Oulu — health tech and wireless communications

The multicultural workforce is growing, as Finland actively attracts foreign talent through startup visas and international recruitment programs.

With Gloroots as your Employer of Record in Finland, employers can access this talent pool seamlessly while ensuring contracts, benefits, and working conditions are fully compliant with Finnish labor standards.

Finland Workforce Snapshot

Q. What is the process of setting up an entity in Finland?

Setting up a business entity in Finland is relatively straightforward compared to many EU countries, but it requires strict compliance with corporate, tax, and employment regulations. The most common vehicle for foreign employers is a Limited Liability Company (Osakeyhtiö or Oy), though branch offices and partnerships are also options.

Steps to Establish a Legal Entity in Finland

1. Choose Business Structure
   • Limited Liability Company (Oy) — most common for foreign companies.
   • Branch Office — requires registration with Finnish Trade Register.
2. Register with the Finnish Trade Register
   • Managed by the Finnish Patent and Registration Office (PRH).
   • Articles of Association, board details, and share capital must be filed.
3. Minimum Share Capital
   • No minimum capital required since 2019 for a private limited company.
4. Obtain Business ID
   • Issued by the Finnish Tax Administration (Vero).
5. Register for Taxes
   • VAT (if turnover exceeds €15,000), employer contributions, and corporate tax (20%).
6. Register with Social Insurance Institutions
   • Employers must enroll employees in Kela (social security) and pension systems.
7. Set Up Payroll & Banking
   • A Finnish bank account is required for payroll, tax, and social contribution payments.
8. Employment Contracts & CBAs
   • Contracts must comply with Finnish labor law and relevant collective bargaining agreements (CBAs).

Entity setup typically takes 3–6 weeks, though compliance with payroll and labor regulations can require ongoing local expertise.

With Gloroots as your Employer of Record in Finland, you can bypass entity setup and hire employees in a matter of days, with Gloroots managing contracts, payroll, and compliance on your behalf.

Entity Setup: Direct Entity vs. Gloroots EOR in Finland

Q. What are the main benefits of using Gloroots as an Employer of Record in Finland vs setting up your own entity?

Hiring in Finland offers access to a highly skilled, innovation-driven workforce, but setting up a legal entity can be costly, time-consuming, and administratively complex. Employers must navigate corporate registration, collective bargaining agreements (CBAs), strict labor protections, payroll compliance, and high social security contributions.

By partnering with Gloroots as your Employer of Record in Finland, you can hire employees quickly without going through entity setup. Gloroots becomes the legal employer, handling contracts, payroll, benefits, and compliance, while you retain full control over employees’ day-to-day responsibilities. This model accelerates market entry, reduces overhead, and ensures compliance with Finnish employment law.

Benefits: Direct Entity vs. Gloroots EOR in Finland

Q. What are the key employment laws in Finland that employers should know?

Employment in Finland is governed by the Employment Contracts Act, the Working Hours Act, and a wide range of collective bargaining agreements (CBAs) that vary by sector. Employers must comply with both statutory law and CBA provisions, which often provide more favorable conditions for employees.

Key Employment Laws in Finland

• Employment Contracts
  • Must be in writing, outlining role, salary, working hours, and benefits.
  • Fixed-term contracts are allowed only for justified reasons; otherwise, indefinite-term contracts are standard.
• Working Hours
  • Standard working hours: 40 hours per week (8 hours/day).
  • Flexible arrangements and remote work are widely accepted.
• Overtime
  • Maximum overtime: 138 hours in 4 months or 250 hours per year.
  • Paid at 150% of base pay for the first 2 hours, then 200% thereafter.
• Minimum Wage
  • No national statutory minimum wage. Instead, wages are set by industry-specific CBAs, which are legally binding.
• Annual Leave
  • Employees accrue 2.5 days of paid leave per month worked (approx. 30 days/year).
  • Some CBAs provide additional leave.
• Sick Leave
  • Employers pay full salary for the first 9 days of illness.
  • From day 10 onwards, compensation is paid by the Social Insurance Institution of Finland (Kela).
• Maternity & Paternity Leave
  • Parental leave is highly generous: 320 working days total, which can be shared between both parents.
  • Employers are not required to pay salaries during leave, but state allowances apply.

With Gloroots as your Employer of Record in Finland, we ensure all contracts and payroll align with Finnish labor law and the relevant CBAs, reducing risk of disputes and penalties.

Employment Law: Direct Entity vs. Gloroots EOR in Finland

Q. What types of work visas are available in Finland, and how can Gloroots help?

Foreign nationals who want to work in Finland must obtain a residence permit for employment or self-employment. The process is overseen by the Finnish Immigration Service (Migri) and varies depending on the nature of employment. EU/EEA citizens do not need a work permit but must register their right of residence if staying longer than 90 days.

Main Types of Work Visas in Finland

1. Residence Permit for Employment (Työntekijän oleskelulupa)
   • The most common permit for foreign employees hired by a Finnish employer.
   • Requires a confirmed job offer, proof of salary, and compliance with collective bargaining agreement (CBA) wage levels.
   • Valid for 1–4 years, renewable.
2. Specialist Residence Permit
   • For highly skilled professionals (e.g., IT, engineering, biotech).
   • Processing time is faster than standard permits (approx. 2 weeks with Fast Track).
   • Requires proof of higher education and a salary above a minimum threshold (€3,473/month in 2024).
3. EU Blue Card
   • For highly qualified professionals from outside the EU.
   • Requires a higher education degree and an employment contract with a salary at least 1.5 times the average gross wage in Finland.
   • Valid for up to 2 years, renewable.
4. Startup Entrepreneur Permit
   • Designed for entrepreneurs founding innovative startups in Finland.
   • Requires an endorsement from Business Finland.
5. Intra-Corporate Transfer (ICT) Permit
   • For managers, specialists, and trainees transferred within multinational companies.
6. Seasonal Work Permit
   • For temporary workers in agriculture, forestry, and tourism (up to 9 months).

How Gloroots Helps with Finnish Work Visas

Setting up and sponsoring visas independently requires a registered Finnish entity, compliance with CBAs, and coordination with Migri. For global companies without a local presence, this is often a barrier to hiring.

With Gloroots as your Employer of Record in Finland:

• We sponsor your employees’ residence permits under our Finnish entity.
• We ensure visa applications meet CBA wage and employment requirements.
• We handle end-to-end immigration compliance, from applications to renewals.
• We help employers choose the right permit type (e.g., Specialist vs. Blue Card) based on role and qualifications.
• We support relocation, family sponsorship, and employee onboarding in Finland.

This allows global employers to hire top Finnish and international talent without the need to set up a local entity or navigate immigration complexities.

Q. What are the risks of misclassification in Finland?

In Finland, the distinction between an employee and an independent contractor is tightly regulated under the Employment Contracts Act. Misclassifying employees as contractors to avoid paying social security contributions, benefits, or complying with collective bargaining agreements (CBAs) can expose employers to severe legal, financial, and reputational risks.

Criteria for Determining Employment vs. Contracting

A worker is generally considered an employee if:

• They perform work personally and cannot freely subcontract it.
• The employer exercises direction and supervision over how, where, and when work is performed.
• The worker is integrated into the company’s operations, using its tools, systems, or working at its premises.
• They receive a regular salary, not project-based payments.

If these conditions are met, the worker must be classified as an employee, not a contractor.

Penalties for Misclassification in Finland

• Retroactive Benefits & Contributions: Employers may be required to pay unpaid social security contributions, pension payments, and holiday pay.
• Fines & Penalties: Labor authorities may impose fines for non-compliance with CBAs and labor law.
• Tax Liabilities: Employers may face back taxes, penalties, and interest charges.
• Reputational Risks: Misclassification can damage employer credibility in Finland’s tight-knit labor market.

With Gloroots as your Employer of Record in Finland, you avoid misclassification risks. We ensure proper worker classification, issue compliant contracts under Finnish law, and manage payroll, social contributions, and benefits.

Misclassification Risk: Direct Entity vs. Gloroots EOR in Finland

Q. How does an EOR help you run payroll in Finland?

Running payroll in Finland requires careful adherence to tax regulations, collective bargaining agreements (CBAs), and social security obligations. Employers must ensure timely salary payments, accurate deductions, and compliance with reporting to multiple authorities. Errors in payroll can lead to fines, employee disputes, and reputational harm in Finland’s highly regulated labor environment.

Payroll Compliance Requirements in Finland

• Salary Payments
  • Salaries must be paid monthly, usually on the last working day.
  • Payslips must clearly show gross pay, deductions, and net pay.
• Tax Withholding
  • Employers must deduct progressive income tax at source, based on employee-specific tax cards issued by the Finnish Tax Administration (Vero).
  • Income tax rates range from 12% to 44%, depending on earnings.
• Employer Contributions
  Employers must make significant contributions in addition to gross salary, including:
  • Pension insurance (TyEL): ~16.95% (split between employer and employee).
  • Health insurance contribution: ~1.34% (employer).
  • Unemployment insurance: ~0.52%–2.06% (employer, depending on payroll size).
  • Accident insurance: varies by sector.
  • Group life insurance: required in most CBAs.
• Collective Bargaining Agreements (CBAs)
  • Many CBAs mandate specific pay scales, bonuses, and overtime rules. Employers must integrate these into payroll.
• Reporting
  • Employers must report salary and contribution data in real-time to the Incomes Register, a national digital reporting system.

How Gloroots Simplifies Payroll in Finland

With Gloroots as your Employer of Record in Finland:

• We process salaries accurately and issue compliant payslips.
• We withhold and remit income taxes in line with employee tax cards.
• We manage all employer and employee social security contributions.
• We ensure compliance with CBAs covering your industry.
• We handle reporting to the Finnish Incomes Register, minimizing risk of penalties.

This allows you to focus on managing your workforce while Gloroots ensures seamless, compliant payroll operations.

Payroll in Finland: Direct Entity vs. Gloroots EOR

Q. How does tax compliance work in Finland?

Tax compliance in Finland is structured, transparent, and highly regulated. Employers play a central role in ensuring compliance since they are responsible for withholding taxes, paying social contributions, and reporting income to authorities.

Personal Income Tax in Finland

Income tax in Finland is progressive, combining municipal and state taxes, plus mandatory social contributions.

2024 State Income Tax Rates (on annual taxable income):

• Up to €19,900: 0%
• €19,901 – €29,700: 12%
• €29,701 – €49,000: 19%
• €49,001 – €85,800: 31.25%
• Above €85,800: 44%

In addition, municipal tax rates range between 16.5%–23.5%, depending on location. Employees also pay pension and unemployment contributions.

Employer & Employee Contributions

Employers must contribute significantly to social security in addition to employee gross wages.

Employer Contributions (approx. 20–25% of salary):

• Pension insurance (TyEL): ~16.95% (employer & employee share).
• Unemployment insurance: ~0.52%–2.06% (employer share, varies by payroll size).
• Health insurance: ~1.34% (employer share).
• Accident insurance: varies by industry.
• Group life insurance: required under most CBAs.

Employee Contributions (deducted from salary):

• Pension insurance: 7.15% (age 17–52 & 63–67), 8.65% (age 53–62).
• Unemployment insurance: 1.50%.
• Health insurance: ~1.54% (includes medical contribution).

Reporting Obligations

• Employers must report all salary, tax, and benefit data to the Finnish Incomes Register in real-time.
• Annual income statements must be submitted to the Finnish Tax Administration (Vero).
• Non-compliance can result in penalties, back payments, and interest charges.

How Gloroots Simplifies Tax Compliance in Finland

With Gloroots as your Employer of Record in Finland:

• We ensure accurate withholding of progressive income taxes.
• We manage all employer and employee contributions.
• We handle reporting to the Incomes Register and Vero.
• We integrate CBA-specific obligations into payroll and tax filings.
• We minimize risks of misfilings, ensuring full compliance with Finnish tax law.

Tax Compliance: Direct Entity vs. Gloroots EOR in Finland

Q. What benefits and entitlements do employees in Finland receive?

Finland has one of the most comprehensive social protection systems in Europe. Employee entitlements are safeguarded by the Employment Contracts Act, the Annual Holidays Act, and collective bargaining agreements (CBAs) that apply across industries. In addition to generous statutory benefits, employers often provide extra perks like meal allowances, health services, and flexible working arrangements to remain competitive.

Core Statutory Benefits in Finland

• Annual Leave
  • Employees accrue 2.5 vacation days per month, totaling about 30 days of paid annual leave per year.
  • Leave must be scheduled in consultation with employees, and CBAs may provide additional leave.
• Public Holidays
  • Employees enjoy 12–15 public holidays annually, depending on the calendar year.
• Sick Leave
  • Employers pay full salary for the first 9 days of illness.
  • From day 10, compensation is provided by the Social Insurance Institution of Finland (Kela).
• Parental Leave
  • Parents are entitled to 320 working days of parental leave, which can be shared between them.
  • Leave is paid by Kela, though many CBAs require employers to top up part of the pay.
• Health & Social Insurance
  • Finland provides universal healthcare through the public system, but many employers offer supplementary occupational healthcare and wellness benefits.
• Pensions & Unemployment Insurance
  • Employers and employees jointly contribute to statutory pension (TyEL) and unemployment insurance.
• Other CBA-Mandated Benefits
  • Many CBAs guarantee meal allowances, bonuses, and group life insurance.

With Gloroots as your Employer of Record in Finland, you can provide locally compliant statutory benefits while also offering global perks tailored to attract and retain talent.

Benefits & Entitlements: Direct Entity vs. Gloroots EOR in Finland

Q. What’s involved in hiring and onboarding employees in Finland?

Hiring in Finland requires strict compliance with labor laws, collective bargaining agreements (CBAs), and tax/social insurance registrations. The onboarding process emphasizes transparency, employee rights, and integration into Finland’s collaborative work culture.

Key Steps in Hiring & Onboarding Employees in Finland

1. Drafting the Employment Contract
   • All employees must receive a written employment contract.
   • Contracts must specify role, working hours, salary, leave entitlements, and reference the relevant CBA.
2. Employment Registration
   • Employers must notify the Finnish Incomes Register of new hires.
   • Employees must also be registered with Kela (Social Insurance Institution) and pension providers (TyEL).
3. Work & Residence Permits
   • EU/EEA nationals do not require a work permit but must register their right of residence if staying longer than 90 days.
   • Non-EU nationals require an appropriate residence permit for employment.
4. Payroll & Tax Setup
   • Employers must request an employee’s tax card from the Finnish Tax Administration (Vero).
   • Payroll must account for progressive tax rates, social contributions, and CBA entitlements.
5. Probationary Period
   • Typically up to 6 months (or 12 months for senior roles under CBAs).
   • Both employer and employee may terminate during probation with shorter notice.
6. Onboarding & Orientation
   • Finnish workplaces emphasize independence and trust. Onboarding often includes team integration, IT setup, and health/safety training.
   • Many employers also provide occupational health checks as part of onboarding.

With Gloroots as your Employer of Record in Finland, you don’t need to worry about these complexities. We issue compliant contracts, manage registrations with Vero, Kela, and TyEL, and ensure your employees are set up for success from day one.

Hiring & Onboarding: Direct Entity vs. Gloroots EOR in Finland

Q. How do you successfully manage a workforce in Finland?

Successfully managing a workforce in Finland requires a blend of compliance, cultural awareness, and employee engagement. Finnish professionals value independence, equality, and transparency, while expecting employers to respect labor rights enshrined in law and collective bargaining agreements (CBAs).

Key Considerations for Workforce Management in Finland

• Work-Life Balance
  • Finland consistently ranks among the top countries for work-life balance. Flexible working hours, remote work options, and respect for vacation time are standard expectations.
• Flat Hierarchies & Transparency
  • Workplaces are typically non-hierarchical, with collaborative decision-making and open communication. Managers are expected to lead by consensus rather than authority.
• Unionization & Collective Agreements
  • Trade union membership remains strong. Employers must respect CBAs, which cover salaries, overtime, benefits, and working conditions across industries.
• Employee Engagement & Retention
  • While Finland offers a highly skilled talent pool, retaining top talent requires competitive benefits and career development opportunities. Wellness perks, training, and supplementary health insurance are common retention tools.
• Compliance & Administration
  • Employers must track working hours, overtime, leave accruals, and ensure compliance with the Working Hours Act and CBAs.

With Gloroots as your Employer of Record in Finland, you can manage your workforce effectively while we handle the compliance, payroll, and HR administration, freeing you to focus on building trust, innovation, and engagement with your Finnish team.

Workforce Management: Direct Entity vs. Gloroots EOR in Finland

Q. What are the key steps and requirements in terminating employees in Finland?

Termination in Finland is governed by the Employment Contracts Act and is more restrictive than in many other countries. Employers must have valid grounds for dismissal, follow strict notice rules, and respect employee protections outlined in law and collective bargaining agreements (CBAs).

Key Termination Requirements in Finland

• Grounds for Termination
  • Acceptable grounds include serious misconduct, redundancy, or employee incapacity.
  • Poor performance must be well-documented with prior warnings and opportunities for improvement.
• Notice Periods
  • Based on length of service:
    • 14 days (less than 1 year)
    • 1 month (1–4 years)
    • 2 months (4–8 years)
    • 4 months (8–12 years)
    • 6 months (12+ years)
• Severance Pay
  • No statutory severance. However, CBAs or company policies may require redundancy compensation.
• Probationary Period
  • Up to 6 months (12 months for senior roles under some CBAs).
  • Termination during probation is easier but still must be justified and not discriminatory.
• Employee Protections
  • Special protection applies to pregnant employees, employees on family leave, shop stewards, and elected representatives.
• Documentation
  • Employers must provide written notice of termination and reasons.
  • Final salary, accrued vacation pay, and benefits must be settled at termination.

Gloroots helps employers manage terminations lawfully, ensuring notice periods, documentation, and settlements are handled correctly to avoid disputes or penalties.

Termination in Finland: Direct Entity vs. Gloroots EOR

Q. What is the offboarding process in Finland?

Offboarding in Finland must comply with the Employment Contracts Act, collective bargaining agreements (CBAs), and tax/social security regulations. The process is not only about ending employment but also ensuring legal compliance, accurate settlements, and a respectful exit that maintains the employer’s reputation.

Key Steps in Offboarding Employees in Finland

1. Notice of Termination
   • Written notice must specify reasons for termination and the applicable notice period.
2. Final Payroll & Settlements
   • Employers must pay:
     • Final salary (up to the last working day)
     • Accrued but unused vacation pay
     • Any redundancy or CBA-mandated compensation
   • Payments must be made no later than the final working day unless otherwise agreed.
3. Documentation
   • Employees must receive:
     • Written notice of termination
     • A Certificate of Employment, confirming job title, duration, and type of duties
     • Payslip and final settlement statement
4. Social Security & Pension Updates
   • Employers must update records with pension providers (TyEL) and the Finnish Incomes Register.
5. Return of Company Property
   • Employees must return laptops, keycards, phones, and other equipment.
6. Exit Interview & Knowledge Transfer
   • While not legally required, many Finnish companies conduct exit interviews to ensure a smooth transition and gather feedback.
7. Post-Employment Benefits
   • Employees remain entitled to state benefits (e.g., unemployment support) once employment has officially ended.

With Gloroots as your Employer of Record in Finland, we manage compliant offboarding end-to-end, ensuring all legal requirements are met, documentation is issued, and settlements are processed accurately.

Offboarding in Finland: Direct Entity vs. Gloroots EOR

Q. What costs and financial planning do you need with an Employer of Record in Finland?

Hiring in Finland requires employers to plan for more than just base salary. The cost of employment includes high social contributions, holiday pay, pensions, and insurance premiums, all of which must align with Finnish labor law and collective bargaining agreements (CBAs). Companies setting up a local entity also face significant administrative and compliance costs.

Key Employment Cost Considerations in Finland

• Base Salary
  • Salaries are often benchmarked against CBAs, which set industry-specific minimums.
• Employer Contributions (~20–25% of salary)
  • Pension insurance (TyEL): ~16.95% (employer share).
  • Unemployment insurance: 0.52%–2.06% (based on payroll size).
  • Health insurance: ~1.34%.
  • Accident insurance: varies by sector risk.
  • Group life insurance: required under most CBAs.
• Holiday Pay
  • Employees are entitled to ~30 days of annual leave.
  • Holiday pay is typically 100% of salary, with some CBAs providing holiday bonuses (50% extra pay).
• Sick Leave Costs
  • Employers cover full pay for the first 9 days, after which Kela takes over.
• Parental Leave Costs
  • Employers must allow up to 320 working days of parental leave. Salary is paid by Kela, but CBAs may require employer top-ups.
• Administrative Overheads (Direct Entity only)
  • Payroll software, legal advisors, HR staff, and compliance systems.

Gloroots helps you forecast and manage costs by providing a transparent EOR fee structure. We cover payroll, contributions, and benefits, reducing financial uncertainty and enabling accurate workforce planning.

Cost Planning: Direct Entity vs. Gloroots EOR in Finland

Q. What challenges might you face, and how do you solve them using EOR in Finland?

Finland is an attractive destination for global employers thanks to its skilled workforce, innovation-driven economy, and transparent regulations. However, companies entering the market face several legal, cultural, and financial challenges. Without a local partner, these can delay hiring, increase costs, or expose companies to compliance risks.

Common Challenges in Hiring & Managing Employees in Finland

1. Complex Collective Bargaining Agreements (CBAs)
   • CBAs set industry-specific minimum wages, leave entitlements, and benefits. Non-compliance can lead to fines and disputes.
2. High Employment Costs
   • Employer contributions (~20–25% of salary) and holiday bonuses increase the total cost of employment.
3. Strict Termination Rules
   • Employers must have just cause, follow statutory notice periods, and respect employee protections, making terminations challenging.
4. Payroll & Tax Compliance
   • Employers must integrate progressive tax rates, pension contributions, and unemployment insurance into payroll while reporting in real-time to the Incomes Register.
5. Administrative Burden
   • Running payroll, handling Kela reimbursements, and navigating immigration for non-EU hires require significant HR resources.

How Gloroots EOR Solves These Challenges

With Gloroots as your Employer of Record in Finland:

• We ensure CBA compliance, drafting contracts and payroll in line with sector-specific agreements.
• We manage payroll, taxes, and contributions, eliminating administrative overhead.
• We reduce risk by ensuring lawful terminations and settlements.
• We simplify hiring for non-EU workers by sponsoring residence permits under our entity.
• We provide transparent cost structures with predictable EOR fees.

This allows you to enter the Finnish market quickly and compliantly without building a local HR or legal team.

Challenges in Finland: Direct Entity vs. Gloroots EOR

Conclusion

Finland offers a highly skilled workforce, a stable economy, and a culture of innovation that makes it a strategic destination for global employers. However, strict labor protections, collective bargaining agreements, and high employment costs can create complexity for companies hiring directly.

With Gloroots as your Employer of Record in Finland, you can tap into Finland’s talent market quickly and compliantly, without the burden of setting up a local entity. From drafting compliant contracts to managing payroll, benefits, and immigration, Gloroots ensures your operations run smoothly — allowing you to focus on growth while we handle compliance.

Gloroots makes hiring in Finland simple, compliant, and cost-effective.