Posting workers to Finland and Sweden requires not only compliance with European labour regulations, but also a thorough understanding of local specificities. One of the key tools to ensure compliance and foster cooperation with labour authorities is the Local Agreement – a local company agreement often provided for in collective agreements.
- Local Agreements in Finland
- Obligations for companies posting workers to Finland
- Information to be submitted to the occupational health and safety authority
- Local Agreements in Sweden
- Obligations of employers posting workers to Sweden
- Information to be included in the Local Agreement for postings to Sweden
- Regulatory Framework
- Global Mobility Services
1. Local Agreements in Finland
A Local Agreement is a written arrangement between the employer and employee representatives, allowing for flexibility on certain aspects of the collective agreement (e.g. working hours and shifts, holidays, pay), within the limits set by law or the applicable national contract.
As of 1 January 2025, all EU/EEA employers seconding staff to Finland may negotiate a Local Agreement— even if they are not members of employers’ associations— on matters permitted by the relevant national collective agreement. This reform aims to increase local bargaining flexibility to improve operational efficiency and productivity.
The reformed legislation also ensures that local bargaining rights are equally available to all companies, regardless of their membership in employers’ associations or the presence of employee representation at the workplace.
Once concluded, the Local Agreement must be submitted to the Occupational Safety and Health Authority (OSH).
1.1 Obligations for companies posting workers to Finland
During the period of employment in Finland, employers must comply with the following obligations under Finnish labour and occupational safety legislation:
- To draw up and maintain in writing throughout the posting period:
- the details of the posting company and the responsible persons in the country of origin
- the identification data of the posted workers
- the working conditions applicable to posted workers
- working time records, pay slips and verification of the payment of wages by a financial institution
- To ensure the following:
- Organisation of statutory occupational health care
- Valid accident insurance for all posted workers
- General occupational safety measures
- Application for Tax Number and Vallti card for employees working in construction and shipyards
- With the posted employee’s consent, to provide:
- Information on working conditions to employee representatives
- A copy of the Local Agreement to the OSH Authority (if based on a universally binding collective agreement) within one month of signing
- A report to the contractor, during the work, on the social security status of posted subcontractors and agency workers
Finally, the posting company must apply for a portable A1 certificate, which confirms that posted workers remain subject to the social security legislation of the home country.
1.2 Information to be submitted to the occupational health and safety authority
The Local Agreement must be submitted in writing to the OSH Authority within one month of its conclusion. The relevant division is determined by the location of the worksite where the employees are posted.
The local agreement may be submitted via the electronic platform provided by OSH. If electronic submission is not possible, the documents can be sent in paper form to the regional OSH Authority or the Occupational Safety and Health Division of the Regional State Administrative Agency.
The information to be submitted to the occupational health and safety authority is as follows:
- Employer details
- Information on the submitting party
- Contact person (if different from the submitting party)
- Details of the local agreement
- Date of conclusion of the agreement
- Start and end date of the agreement
- Reference to the collective agreement, including, if necessary, the section of the collective agreement on which the agreement is based
- Staff representative or party with whom the agreement was concluded (e.g. trade union representative, elected representative, other party specified in the collective agreement)
Failure to comply may result in administrative fines ranging from EUR 1,000 to EUR 10,000, with higher penalties (up to EUR 15,000) in cases of repeated violations.
2. Local Agreements in Sweden
In Sweden, collective agreements (Kollektivavtal) are central. The so-called “Swedish Model” relies on negotiations between trade unions and employers, featuring extensive employee participation. This ensures both flexibility and sector-specific relevance.
Foreign companies posting workers to Sweden may also conclude binding Local Agreements with Swedish trade union representatives.
For instance, in the metal and technology sector, foreign employers can enter into Local Agreements with IF Metall, the primary union in the industry. These agreements allow the negotiation of company-level terms, provided they do not worsen conditions established in the collective agreement.
The agreement is valid only for the duration of the posting.
2.1 Obligations of employers posting workers to Sweden
As outlined above, foreign companies posting employees in Sweden are also required to comply with a number of obligations, including:
- Notify the posting and appoint a contact person who can provide information to the local authority.
- Ensure compliance with Swedish legislation on:
- Health and safety at work
- Equal treatment and non-discrimination
- Working hours, holidays, parental leave, pay.
- Draw up and retain for the duration of the posting:
- Identification of posted workers
- Applicable working conditions
- Working time records, pay slips and proof of payment of wages.
- In the case of postings to construction sites, request an ID06 card for workers.
2.2 Information to be included in the Local Agreement for postings to Sweden
Employers who post employees to Sweden in the context of international service provision may sign collective agreements with a Swedish workers’ representative organisation or become members of a Swedish employers’ representative organisation and thus be bound by a Swedish collective agreement.
Workers’ representative organisations have the right to take industrial action to induce posting employers to sign collective agreements.
Many unions offer templates specifically for posted workers. Required information typically includes:
- Employer details (company name, identification number, registered office address, telephone number, e-mail address)
- Name of the representative of the posting company, with power of signature
- Registration number of the posting company with the Swedish tax authorities Skatterverket
- Details of contact person in Sweden
- Start and end date of the agreement
- Place of provision of services in Sweden
- Swedish client information
- Collective agreement on which the agreement is based
- Details of the trade union representation with which the agreement was concluded
It should also be indicated whether the posted workers will be temporarily placed under the supervision and direction of user undertakings during the posting.
Finally, the posting company must provide a copy of the service contract concluded with the receiving company in Sweden.
The conclusion of Local Agreements is a strategic tool for companies posting workers to Finland and Sweden, ensuring not only compliance with national and EU labour rules but also fostering effective cooperation with social partners. The proper management of these agreements makes it possible to avoid penalties, facilitate relations with the authorities, and adapt working conditions to the company’s operational needs.
