Guide to employment of foreigners in Finland

Confederation of Finnish Construction Industries RT Finnish Construction Trade Union 2007

2 CONTENTS 1. Introduction 2. Concepts and definitions 3. T e foreign employee in Finland

3.1. Necessary permits for a foreigner 3.2. !pplica"le terms of employment for t e foreign employee 3.3. Ta#ation and t e foreign employee 3.$. Social security for t e posted employee 3.%. Employer&s o"ligation to pro'ide personal accident insurance 3.(. )ayment of *ages 'ia "an+ing institutions 3.,. C ec+ list for t e foreign employee

$. Su"contracting and leasing of la"our

$.1. !ct on t e Contractor&s O"ligations and -ia"ility * en .or+ is Contracted Out $.1.1. Information re/uired of t e su"contractor and company leasing la"our $.1.2. Information re/uired of t e foreign company $.1.3. . en it is unnecessary to re/uest information $.2. Foreign company&s o"ligation to appoint a representati'e $.3. O"ligation of t e company employing leased la"our to inform t e ta# aut orities $.$. 0egistration of foreign companies for )!1E and collection of ta# at source from *or+ remuneration $.%. O"ligation of contractor2foreign employer to o"ser'e t e national la"our rig ts of ot er t an E32EE! citi4ens $.(. Insuring against accidents on Finnis construction sites $.(.1. )ersonal accident insurance $.(.2. -ia"ility for damages in an accident $.(.3. 0ecommendation concerning t e supplier&s re/uired insurance protection $.,. )ersonal I5 $.6. !ccess control $.7. 3TS agreement relating to use of e#ternal la"our $.18. 5eclarations to t e ta# aut orities $.11. C ec+ list for su"contracting and la"our leasing agreement

%. Site measures re/uired in use of foreign la"our (. 3seful contact information

!ppendices
1. Terms to be included in the subcontracting and labour leasing company s agreement 2. !"ample of access pass list #. !"ample of ! 101 certificate $. !"ample of employee s residence permit %. !mployee s resident permit application form &. Registration form

1. Introduction This general guide attempts to clarify the rules relating to employment of foreigners in Finland and thereby pre'ent disruption in the (or)place. The guide is published by the Confederation of Finnish Construction Industries RT and the Finnish Construction Trade Union. The guide is intended for the entire building trade. The guide (as dra(n up according to the needs of the construction industry and attention has been paid to the special re*uirements set by legislation and agreements in this field. +egislation has been obser'ed for a period of one year up until #1.12.0&. The guide presents matters relating to employment of foreigners from three perspecti'es. The contents of ,ection # are intended for the foreign employee. ,ection $ deals (ith matters from the contractor and procurement perspecti'e. ,ection % is a set of operating instructions for site management. 2. Concepts and definitions Important regulations for the foreign employee are .liens .ct /#010200$1 2osted 3or)ers .ct /11$&014441

Foreigner . foreigner is defined as a person (ho is not a Finnish citi5en. Foreigners can be di'ided into three sub6groups 7ordic citi5ens Citi5ens of !U0!!. countries Citi5ens of third countries. !U0!!. countries !U0!!. countries are all the !uropean Union 8ember ,tates plus Iceland9 7or(ay and +iechtenstein. The same rules are also obser'ed (ith regard to ,(it5erland. In many connections the citi5ens of these countries are treated according to the same rules and for this reason the general e"pression :!U0!!. countries; is (idely used in this guide (hen referring to these countries. Third countries Third countries refers to countries (hich are not !U0!!. countries. 2osted employee .n employee normally (or)ing in a state other than Finland9 (here the company acting as employer and domiciled in another state sends the employee during the

4 employment relationship to (or) in Finland for a limited period of time. The posting can be based on a piece(or) agreement bet(een a Finnish and a foreign company or on a labour leasing agreement. !mployer 7atural or legal person (ho has concluded an employment contract (ith an employee. The employer is the person (ho pays the employee s (ages. 3age payment is the primary9 but not the only9 criterion by (hich the term :employer; is defined. !mployee . person (ho performs (or) for another against remuneration. 3. T e foreign employee in Finland 3.1. Necessary permits for a foreigner .ccording to the .liens .ct citi5ens of !U0!!. countries do not re*uire a residence permit for an employed person for (or)ing in Finland. Residence permit for an employed person .ccording to the .liens .ct a residence permit for an employed person means a permit re*uired from a citi5en of a third country for residence in Finland if he or she intends to ha'e such gainful employment to (hich he or she (ould not ha'e the right under another residence permit or (ithout a residence permit. Follo(ing an affirmati'e decision by the !mployment <ffice the residence permit for an employed person is issued by the =irectorate of Immigration and e"tensions of permit by the district police department. ,ections 746>1 of the .liens .ct list the e"ceptions (here employment is permitted (ithout a residence permit for an employed person /more specific regulations concerning9 for e"ample9 students and trainees1. =etails on the procedure for obtaining permits can be obtained from the 8inistry of +abour s (ebsite at (((.mol.fi9 3or)ing in Finland9 Foreigners (or)ing in Finland. Residence permit for a self6employed person .ccording to the .liens .ct a residence permit for a self6employed person means a permit re*uired from a foreigner for residence in Finland if the foreigner intends to pursue a trade. . residence permit for a self6employed person is re*uired of a citi5en from a third country. . self6employed person li'ing abroad can submit his or her application at the Finnish mission9 but the decision in the matter is ta)en by the =irectorate of Immigration. In Finland9 applications are submitted to the local police. Registration of right to reside

5 If citi5ens of !U0!!. countries ha'e been resident in Finland for more than # months their right to reside must be registered (ith the local police. This obligation does not affect 7ordic citi5ens. Registration of information relating to (or) For registration purposes9 citi5ens of the so6called ;ne(; !U countries /C5ech Republic9 !stonia9 +at'ia9 +ithuania9 ?ungary9 2oland9 ,lo'enia and ,lo'a)ia1 must inform the !mployment <ffice about their (or) latest 1$ days after its commencement. It is recommended that @ulgarian and Romanian citi5ens also register in this (ay9 although this is not compulsory. The information gi'en by the foreigner must include his or her name9 place and date of birth9 nationality and a report from the employer (hich contains the name of the employer9 the employer s business I=9 line of business9 location or locations of (or)9 duration of (or) and applicable collecti'e agreement or (or) compensation payable. . ne( report must be submitted if there is a change of employer or if there are any material changes to the information gi'en. .pplying for a social security number . Finnish social security number is necessary9 for e"ample9 for Finnish ta"ation purposes. . Finnish social security number can be obtained by presenting an employment contract and passport at the local police station9 after (hich the social security number is issued by the local register office. .n application may also be submitted at the ta" office along (ith a ta" deduction card application. If there are difficulties (ith identification the ta" office (ill refer the customer to the local register office. 3.2. !pplica"le terms of employment for t e foreign employee . foreigner directly employed by a Finnish company has the same status as a Finnish citi5en (hile he or she is (or)ing in Finland. @oth the foreign and Finnish employee9 therefore9 must comply (ith the same terms of employment in force in Finland. 3ith regard to employees posted by foreign companies9 applicable rules for the employee are specified in the 2osted 3or)ers .ct. In practice the same terms are to be applied for those sent to Finland as posted employees as for Finnish employees. .ccording to the .ct9 the follo(ing rules are applicable for posted employees arri'ing in Finland11 3or)ing ?ours .ct as regards remunerations and increased (ages /including o'ertime1 based on (or)ing hours9 (or) and rest periods and compliance (ith (or)ing hours accounting 21 !mployment Contracts .ct and collecti'e agreement as regards determination of (ages and housing benefit

6 #1 .nnual ?olidays .ct as regards annual holiday9 annual holiday pay9 holiday remunerations and annual holiday accounting $1 !mployment Contracts .ct as regards the regulation concerning family lea'e %1 regulations relating to annual holiday9 (or)ing hours and safety at (or) in generally binding collecti'e agreements are furthermore applicable to the employment contract &1 minimum (age based on the pro'isions of the collecti'e agreement 71 <ccupational ,afety and ?ealth .ct9 !*uality .ct9 <ccupational ?ealth Care .ct and Aoung 3or)ers .ct. +egislation in the posted employee s home country may include regulations affecting his or her terms of employment. 3.3. Ta#ation and t e foreign employee . foreign employee employed by a Finnish employer . person coming to Finland for a ma"imum of si" months has limited ta" liability in Finland. The employer (ithholds ta" at source from the person (ith limited ta" liability together (ith (age payment. Ta" at source is final ta" at the rate of #%B9 unless the ta" authorities ha'e recei'ed a ta"6at6source card (ith instructions to the contrary. From the beginning of 200& the employer9 before (ithholding ta"9 has been able to deduct %10 euros per month or 17 euros per day from the (age6 earner s income ta"able at source. The employer may not9 ho(e'er9 ma)e deductions independentlyC the ma)ing of deductions re*uires that the ta" card al(ays be sho(n to the (age6payer and that the ta" card contain instructions regarding deduction. Furthermore9 such a person (ith limited ta" liability coming to Finland from an !!. country9 and (hose pay in Finland amounts to 7%B or more of his or her annual gross earned income9 has been entitled since the beginning of 200& to normal progressi'e ta"ation for his or her earnings ac*uired in Finland. In practice9 progressi'e ta"ation can only be implemented in conDunction (ith standard ta"ation. In this (ay9 ta" at source is still the primary alternati'e and progressi'e ta"ation is collected later upon demand of the person (ith ta" liability. The earned income of a person coming to Finland for a continuous stay of more than si" months is subDect to the same )ind of progressi'e ta"ation as that of a person permanently resident in Finland. The employer (ithholds ta" according to the ta" card issued by the ta" authority. If the employee does not present a ta" card9 the (ithholding ta" rate is &0B.

7 If the Finnish employer neglects to pay (ithheld ta"9 to (ithhold ta" or to render a ta" account9 the conse*uences of neglect are the same as in the corresponding procedure (ith a Finnish employee. 2osted employee The term :posted (or)ers; in this conte"t refers to employees of foreign subcontractors. . foreign posted employee (or)ing in Finland on an assignment in the ser'ice of a company registered abroad9 and residing in Finland for a ma"imum of & months9 does not ha'e ta" liability in Finland as the *uestion is not one of income earned in Finland. . further re*uirement is that the company does not form a permanent establishment (ith a (age burden in Finland. If the stay in Finland e"ceeds & months9 income is liable to ta"ation in Finland as a rule from the start of the employment in Finland. Income in this instance is ta"ed according to the progressi'e ta"ation scale. 2ayment of ta" is the obligation of the employee in this case9 as a foreign employer in principal has no obligation to (ithhold ta" and render ta" accounts in Finland. Foreign leased employee The scope of ,ection 10 of the Income Ta" .ct (ill be broadened from the beginning of 2007 so that a leased employee s (ages for (or) done in Finland (ould be considered as income earned in Finland9 although the (ages (ere paid by a foreign employer using leased labour. In practice9 ho(e'er9 the change (ill only affect employees arri'ing from !stonia9 +at'ia9 +ithuania and 7ordic countries9 and those states (ith (hom Finland does not ha'e a current ta"ation agreement. For e"ample9 leased employees arri'ing from Russia or 2oland continue to pay their ta"es in Finland only if their stay in Finland is longer than & months /see abo'e regarding ta"ation for a posted employee1. If through this reform the foreign leased employee becomes liable for ta" in Finland he or she9 for the purpose of paying ta" due in Finland9 must obtain a ta" card from the ta" authorities during the month follo(ing the month (hen employment began. . sanction may be ordered if application for payment of (ithholding ta" is neglected. The tas) of the go'ernment of the employee s state of domicile is to remo'e double ta"ation. 3.$. Social security for t e posted employee ,ocial security for the posted employee is normally determined by the regulations applicable in the employee s home country. .s e'idence of the employee being insured in his or her state of domicile the employee must be in possession of the rele'ant certificate concerning the applicable legislation /for e"ample9 ! 1019 appendi" #1. The certificate must be issued on the basis that the person is sent to Finland by an employer (ho normally (or)s in the person s home country.

8 !U 8ember ,tates !U 8ember ,tates /including ne( !U 8ember ,tates1 fall under the scope of application of Council Regulation 7o. 1$0>071 on social security for migrant (or)ers. .ccording to .rticle 1$ of the Regulation the :status; of a posted employee other(ise fulfilling the criteria for posted employees (ill not be preser'ed if the anticipated duration of (or) e"ceeds 12 months or if the posted employee is sent to replace another person (ho has completed his or her term of posting. If9 therefore9 the anticipated duration of (or) for a person (ith the status of a posted employee coming to Finland from an !U 8ember ,tate e"ceeds 12 months9 the person (ill lose the status of posted employee and become subDect to Finnish legislation. ,ocial security agreements !U Council Regulation 7o. 1$0>071 on social security for migrant (or)ers is al(ays primarily applicable to social security agreements for !U0!!. states. Finnish social security agreements made (ith countries outside the !U may include regulations on ho( the status of the posted employee is defined. ,ocial insurance agreements bet(een these countries and Finland can be accessed on the 8inistry of ,ocial .ffairs and ?ealth (ebsite at For those countries (ith (hom Finland has no social security agreement9 the posted employee s status is principally defined on the basis of the legislation and pension security practices in the country of departure. 3.%. Employer&s o"ligation to pro'ide personal accident insurance Foreigners (ho ha'e an employment relationship (ith a Finnish employer are insured in the same (ay as Finnish employees. The 2osted 3or)ers .ct /4.12.1444011$&1 lists the Finnish .cts applicable to employment contracts for posted employees. The !mployment .ccidents .ct is not included in this list. Thus the posted employee s personal accident insurance obligation is defined according to the legislation of the posting country. 3.(. )ayment of *ages 'ia "an+ing institutions In Finland (ages are normally paid through ban)ing institutions. This is also the recommended method (ith regard to foreign employees. . (age paid through a ban) is an indication that the purpose is not to perform undeclared (or). Furthermore9 if (ages are paid through a Finnish ban)ing institution this gi'es the best opportunity9 if so re*uired9 to establish that the (ages paid comply (ith the standard re*uired by legislation and agreements.

9 The Finnish Construction Trade Union offers assistance in opening a ban) account for those foreign employees (ho (ish to become members of the union. 3.,. C ec+ list for t e foreign employee 1 8a)e sure that the terms of your employment are in accordance (ith legislation relating to posted employees. 2 8a)e sure that you ha'e a posted employee s certificate concerning applicable social security. # If you are not an !U0!!. citi5en9 ma)e sure that you ha'e the necessary permit for (or)ing in Finland. $ If you are not a citi5en of an !U0!!. country9 register your right to reside (ith the local police if you are remaining in Finland for more than # months. This obligation does not affect 7ordic citi5ens. % If you are a citi5en of a so6called ;ne(; !U country /C5ech Republic9 !stonia9 +at'ia9 +ithuania9 ?ungary9 2oland9 ,lo'enia9 ,lo'a)ia9 @ulgaria or Romania19 inform the !mployment <ffice about your (or) latest 1$ days after its commencement9 for registration purposes. & Aou can obtain a Finnish social security number by presenting an employment contract and passport at the local police station9 after (hich the social security number is issued by the local register office. Aou can also submit an application at the ta" office9 along (ith a ta" card application. 7 If you are coming to Finland as a leased employee from !stonia9 +at'ia9 +ithuania9 a 7ordic country9 or a state (ith (hom Finland does not ha'e a current ta"ation agreement9 obtain a ta" card from the ta" authorities for the purpose of paying your ta". The ta" card must be obtained during the month follo(ing the month (hen employment began. $. Su"contracting and leasing of la"our The follo(ing section deals (ith matters (hich must be ta)en into account (hen gi'ing in'itations to tender9 in contract negotiations and in the final agreement. $.1. !ct on t e Contractor&s O"ligations and -ia"ility * en .or+ is Contracted Out

10 .ccording to the .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut /12##0200&1 the contractor has an obligation to chec) the bac)ground of such contractual parties (ith (hom the contractor is concluding an agreement in'ol'ing leased labour or specific (or) based on subcontracting. In construction and construction6related repair9 care and maintenance operations9 the .ct is applicable both for contractors operating as construction contractors and all those in the contract chain operating as o'erall contractors for (or) on general construction sites as referred to in the <ccupational ,afety and ?ealth .ct. The .ct is applicable for both domestic and foreign subcontractors and labour leasing companies. $.1.1. Information re/uired of t e su"contractor and company leasing la"our @efore the contractor concludes a contract on the use of a leased employee or on (or) based on a subcontract9 the contractor shall re*uire from the contracting partner9 and he or she shall pro'ide the contractor (ith11 an account of (hether the company is entered in a. the 2repayment Register b. the !mployer Register c. the Ealue .dded Ta" RegisterC 21 an e"tract from the Trade RegisterC #1 a certificate of ta" payment or of ta" debt9 or an account that a payment plan has been made regarding a ta" debtC $1 certificates of pension insurances ta)en out and of pension insurance premiums paid9 or an account that a payment agreement on outstanding pension insurance premiums has been madeC and %1 an account of the collecti'e agreement or the principal terms of employment applicable to the (or). The certificates must be obtained before the contractor concludes the contract on the use of a leased employee or on (or) based on a subcontract. If9 ho(e'er9 the contractor obtains the re*uired certificates at a later date9 the contract must contain an escape clause in the e'ent that the contractor (ould not ha'e concluded the contract on the basis of the certificates obtained. Certificates and accounts may be gi'en as originals or as copies9 or the contractor may ta)e copies. .ccounts and certificates must not be older than # months. If the contractor concludes a ne( contract (ith the same contracting partner before 12 months ha'e elapsed since he or she has discharged the obligation to chec)9 the contractor is not subDect to a ne( obligation to chec)9 unless he or she has

11 reason to belie'e that changes re*uiring re'ie( ha'e ta)en place in the contracting partner s circumstances. If the contract is in force for more than 12 months9 the contractor s contracting partner must pro'ide the contractor9 at 12 month inter'als during the contractual relationship9 (ith certificates as referred to in the abo'e6mentioned points # and $9 and chec) the corresponding information about the foreign company. The contractor has the right to accept an account other than an account pro'ided by an authority9 pro'ided that it has been gi'en by another party generally held to be reliable that is responsible for e'aluating or maintaining information. ,uch )ind of parties include the Construction Fuality .ssociation and the Finnish Roofing .ssociation. Register entries Information can be obtained9 for e"ample9 from the @usiness Information ,ystem at . It should also be noted that for the purpose of registration mentioned abo'e there are circumstances in (hich the .ct does not re*uire the registration of all parties. This compact guide does not deal (ith these e"ceptional circumstances. !"tract from the Trade Register The e"tract from the Trade Register gi'es the company s date of entry into the Register9 area of acti'ity9 board of directors9 other management9 company signatories9 auditors9 personal details of persons in charge9 and (hether the most recent financial statements ha'e been deli'ered to the register authority according to legislation. Ta" certificate The obligation to chec) includes obtaining a certificate of ta" payment or of ta" debt9 or an account that a payment plan has been made regarding a ta" debt. The Finnish Ta" .dministration (ill only issue such a certificate directly to the company concerned9 for (hich reason it must al(ays be re*uested from the other contracting partner to the subcontract or from the company supplying the leased employee. 2ension certificates . pension institution (ill issue a certificate to a company stating that there are no outstanding pension insurance premium payments up to the date of issue. If the company has payments outstanding9 the certificate (ill only be issued if the company has concluded a payment agreement on outstanding pension insurance premiums (hich the pension institution considers feasible. In this case the certificate must state that the company has outstanding payments for (hich a payment agreement has been made. .ccount of the collecti'e agreement . contract partner has an obligation to notify the collecti'e agreement to be complied (ith in employment relationships (ith employees. If there are se'eral applicable collecti'e agreements these are to be notified according to the

12 employee groups. .s regards information on (ages9 an account of ho( the (age and its constituent parts are defined is sufficient. The items outlined abo'e comprise the statutory minimum content of the contractor s obligation to chec). ?o(e'er9 especially in cases (here the *uestion is one of an enduring and economically 'aluable large6scale agreement9 it may ne'ertheless be ad'isable to ac*uire from a potential contract partner more detailed information than that listed abo'e. $.1.2. Information re/uired of t e foreign company . foreign contract partner shall pro'ide the contractor (ith information corresponding to the accounts and certificates referred to in ,ection $.1.19 in an understandable form9 by presenting an e"tract from a register complying (ith the legislation of the country (here the enterprise is domiciled /normally also the home country1 or an e*ui'alent certificate or in some other generally accepted (ay. For the accounts to be in an understandable form they should be presented in a language understood by the contractor9 for e"ample9 Finnish. The accounts foreign companies are re*uired to gi'e by la( can be specified as follo(sRegister entries . foreign company shall pro'ide the authorities (ith a certificate of registration for E.T or the e*ui'alent. The 'alidity of the E.T number should also be chec)ed. E.T numbers of Finnish6registered companies can be chec)ed at (((.'ero.fi. Information about companies in !U 8ember ,tates can be found at http-00(((.ec.europa.eu0ta"ationGcustoms0'ies0fi0'ieshome.htm. .ll foreign companies from countries (ith (hom Finland has a ta"ation agreement can be entered in the 2repayment Register or present their ta" card to the contractor. 2ayment transactions may begin only (hen the documentation mentioned in this section has been recei'ed. !"tract from the Trade Register Contract partners are obligated to present an account issued by an authority in the country (here the company is established (hich corresponds to an e"tract from the Trade Register9 indicating the company signatories. If there is reason to suspect that there is a person on the board of the foreign company (ho is prohibited from conducting business in Finland9 the matter can be chec)ed by ordering an e"tract relating to that person from the Register on @ans on @usiness <perations. 8ore information about the register can be obtained at (((.oi)eus.fi0oi)eusre)isteri)es)us. Ta" certificate . contract partner is obligated to pro'ide a certificate issued by the ta" authorities of the appropriate country (hich sho(s that the company has paid its ta"es. 2ension certificates

13 . contract partner is either obligated to present the ! 101 certificate for its employees or a certificate to sho( that the contract partner has ta)en out pension insurance9 or the e*ui'alent9 complying (ith the legislation of the appropriate country. .ccount of the collecti'e agreement The contract partner is obligated to notify (hich generally binding Finnish collecti'e agreement is applicable to its employees. The Confederation of Finnish Construction Industries RT and the Finnish Construction Trade Union monitor the scope and necessity of accounts re*uired of foreign companies and pro'ide more detailed guidance (here appropriate. $.1.3. . en it is unnecessary to re/uest information The la( lists the cases (here accounts are not re*uired for reasons concerning the contract partner. It is also appropriate to chec) the information demanded by la( in cases (here the la( does not specifically re*uire this to be done. !"tent of contract The .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut is not applied if11 the duration of the (or) by the leased employee or employees does not e"ceed a total of 10 daysC or 21 the 'alue of the compensation is less than 79%00 euros (ithout E.T. 3hen calculating the limit 'alues9 the (or) is considered to ha'e continued (ithout interruption if the (or) or (or) outcome performed for the contractor is based on successi'e9 uninterrupted contracts or contracts (ith only short brea)s bet(een them. $.2. Foreign company&s o"ligation to appoint a representati'e In case the employer of a posted (or)er /the company posting the (or)er1 does not ha'e a business location in Finland9 they shall ha'e a representati'e in Finland (ho is authorised to act for the company posting the (or)er in a court of la( and to recei'e on behalf of this company (rits of summons and other documents issued by the authorities /,ection $a of the 2osted 3or)ers .ct1. The representati'e shall be selected no later than at the date (hen the posted (or)er starts (or)ing and the authorisation shall be 'alid for a minimum of 12 months after the date at (hich the posted (or)er ceases (or)ing in Finland. . representati'e need not be selected in case the posting of the (or)er is no more than 1$ days in duration. Representation in Finland is re*uired9 but Finland need not be the representati'e s domicile. The representati'e can be either a pri'ate indi'idual or

14 a company. It is not recommended that the person (ho commissions the (or) embar)s upon the role of representati'e. The main responsibility for selecting a representati'e lies (ith the foreign company. Companies acting as contractor must ensure9 ho(e'er9 in in'itations to tender9 during contract negotiations and in the final agreement9 that the foreign company selects the re*uired representati'e. The obligation can be fulfilled by incorporating a clause in the contract (ith the foreign contractor or company pro'iding leased employees9 according to the model attached to this guide. $.3. O"ligation of t e company employing leased la"our to inform t e ta# aut orities From 1.1.2007 the Finnish company9 i.e. the company commissioning the (or)9 must pro'ide the ta" authorities (ith a notification of the foreign company supplying the leased employee9 and that company s representati'e in the case (here such a representati'e has been selected according to the 2osted 3or)ers .ct. The notification must be gi'en during the month follo(ing the month (hen the employment began. The information must be first submitted to the ta" authorities on #1.>.2007. It is only necessary to gi'e information on the company supplying leased labour9 not on subcontractors. $.$. 0egistration of foreign companies for )!1E and collection of ta# at source from *or+ remuneration From 1.1.2007 a broader opportunity has been granted to foreign companies for prepayment registration. In future all foreign companies from countries (ith a ta"ation agreement (ith Finland ha'e the opportunity of being entered in the 2repayment Register. The pre'ious conditions for registration re*uired a foreign company to establish a business location in Finland. !ntry in the 2repayment Register is not compulsory for a foreign company9 but ta" deductible at source from compensation paid on the basis of (or) in construction9 installation and assembly9 shipbuilding and transport9 cleaning9 care (or) and nursing must be (ithheld in future unless the foreign company is entered in the 2repayment Register or can pro'ide a ta" card stating other(ise. For this reason the most straightfor(ard practice (ould be to re*uire all foreign companies to apply for entry in the 2repayment Register. The abo'e6mentioned obligation relates to compensation paid on the basis of (or) principally or solely carried out in Finland. The *uestion may be one of the hiring of leased labour or of subcontracting. The duty to inform the Finnish ta" authorities has also been prescribed for the foreign company or that company s representati'e appointed according to the 2osted 3or)ers .ct. Information must be gi'en about leased labour as (ell as about other posted (or)ers in the case (here Finland has the po(er to le'y ta"es on their (age income.

15 $.%. O"ligation of contractor2foreign employer to o"ser'e t e national la"our rig ts of ot er t an E32EE! citi4ens 3hen the main contractor concludes a subcontract9 or a contract relating to the hiring of leased labour9 (ith a company operating abroad9 the obligations described belo( to pro'ide (ritten information and an assurance apply9 according to ,ection 7$ of the .liens .ct9 directly to the main contractor. In practice the main contractor must therefore confirm that employees ha'e the re*uired 'alid residence permits for employed persons /see permit obligations abo'e1 and that the terms of employment are in accordance (ith Finnish employment legislation and the current collecti'e agreement. The obligation to )eep information imposed upon the employer is in this case (ith the representati'e described in ,ection $.2. .ccording to the .liens .ct a permit is re*uired from a citi5en of a third country for residence in Finland if he or she intends to ha'e such gainful employment to (hich he or she (ould not ha'e the right under another residence permit or (ithout a residence permit /see ,ection #.1 abo'e1. 3hen the employer of a foreign (or)er applies for a residence permit for an employed person9 the employer must9 according to ,ection 7# of the .liens .ct9 attach the follo(ing account to the residence permit application (ritten information on the principal terms of (or) referred to in Chapter 29 ,ection $ of the !mployment Contracts .ct /%%0200119 an assurance that the terms are in accordance (ith current legislation and the collecti'e agreement9 and upon re*uest by an employment office9 a statement confirming that the employer has met and (ill meet his or her obligations as an employer. .n employer shall submit the same account to the employment office (ithout delay if employing a person from a third country (ho is already residing in Finland. .n employer shall )eep the information on the foreign (or)ers in his or her employment9 and on the grounds for their right to (or)9 easily a'ailable at the (or)place for inspection by occupational safety and health authorities9 if necessary. Upon the termination of the foreign (or)ers employment the employer shall store the information for four years. 3hen citi5ens from a third country /for e"ample9 Russians1 are posted to (or) in Finland by a company operating in an !U0!!. country9 the contractor has an obligation to submit an account in accordance (ith ,ection 7# of the .lien s .ct to the employment office (ithout delay9 e'en though a residence permit for an employed person (ould not be necessary for the duration of the employment. $.(. Insuring against accidents on Finnis construction sites $.(.1. )ersonal accident insurance

16 .ll Finnish employers in Finland are obligated to ta)e out so6called statutory accident insurance for their employees against accidents occurring at (or) or in (or)6related circumstances9 in accordance (ith the !mployment .ccidents Insurance .ct /&0>014$>1. The Finnish system of handling compensation for accidents occurring at (or) by pri'ate accident insurance companies pro'iding insurance separate from general social security de'iates from those of many other countries. <ur neighbours ,(eden9 the @altic ,tates9 2oland and Russia9 among others9 operate a system (hereby accidents at (or) and occupational illnesses are compensated through social security in the same (ay as any other accident or illness. The legislation in these countries does not prescribe an obligation for companies to ta)e out separate insurance for accidents at (or). The Finnish 2osted 3or)ers .ct /4.12.1444011$&1 lists the Finnish .cts applicable to employment contracts for posted employees. The !mployment .ccidents .ct is not included in this list. The posted employee s accident insurance obligation is defined according to the legislation of the posting country. $.(.2. -ia"ility for damages in an accident . posted employee suffering an accident at (or) in Finland (hile in the ser'ice of a foreign employer recei'es compensation primarily through the social security system in his or her home country. In addition the employer may ta)e out 'oluntary personal accident insurance to supplement compensation. The person inDured may apply to his or her employer or the proDect super'isor on the basis of the Finnish Tort +iability .ct or the !mployment Contracts .ct for that part of the compensation entitlement not paid by the accident insurance or due to a lac) of insurance. .ccording to the Finnish Tort +iability .ct the employer is liable to compensate for damage caused by an employee through an error or negligence at (or) /so6called 'icarious liability1. The employer is al(ays primarily liable for damages9 not the indi'idual employee9 for e"ample9 a super'isor9 e'en if on the basis of Dob title he or she (ould ha'e been a representati'e of the employer. The company may protect itself against liability for damages caused by accidents through liability insurance. Finnish liability insurance policies also co'er damages caused to employees9 both the company s o(n employees and those of other companies9 for (hich according to la( the company has liability for damages. 3ith international liability insurance full co'erage should be ensured through inclusion of an !mployer s +iability clause. $.(.3. 0ecommendation concerning t e supplier&s re/uired insurance protection It is ad'isable for the foreign contractor or company hiring leased labour to ta)e out personal accident insurance to complement the social security for its posted employees ta)en out in the company s country of domicile. The e"istence of

17 personal accident insurance is appropriate for reducing employees need to resort to legal proceedings in order to obtain compensation from employer or employee9 and thus promotes smooth operation on the construction site. 2ersonal accident insurance /2.1 should co'er at least the follo(ing one6time payment of compensation for death due to an accident one6time payment of compensation for disability due to an accident compensation for medical e"penses due to an accident

2rotection corresponding to that pro'ided by personal accident insurance can also be arranged through tra'el insurance9 (here the abo'e6mentioned safeguards and insurance also co'er accidents occurring during (or)ing hours /these are often e"cluded from the terms of tra'el insurance1. For e'idence of the e"istence of insurance an insurance policy9 or preferably a certificate of insurance signed by the insurance company or a recognised insurance bro)er should be re*uested9 sho(ing the amounts insured9 the period of 'alidity of the insurance9 confirmation that the insurance co'ers (or)9 the persons insured /list of names attached1 or the insured group /for e"ample9 the entire personnel of the company9 or the personnel of the company concerned that ha'e been posted or are to be posted to a specific construction site19 and that the insurance premiums ha'e been paid. $.,. )ersonal I5 ,ection %2 a of the <ccupational ,afety and ?ealth .ct charges the parties directing or super'ising a shared construction site (ith the obligation to ensure that each person (or)ing on the site (ears 'isible pictorial identification (hile mo'ing on the site. The identification shall indicate (hether the person is a (or)er in an employment relationship or a self6employed person. The minimum legal re*uirement is fulfilled by the identification of the person in *uestion bearing his or her name and photograph9 and the name of his or her employer. The (earing of identification concerns shared construction sites9 i.e. sites in'ol'ing se'eral employers (or)ers9 or self6employed (or)ers. The regulation refers to both construction of housing and to ci'il engineering construction9 as (ell as special contracting. Identification is not re*uired for persons temporarily carrying goods to the site9 nor is it re*uired for persons (or)ing on a site (here a building or a part thereof is built or reno'ated for the personal use of a pri'ate indi'idual. ?o(e'er9 in the case (here the construction contractor is a housing association9 identification must be (orn e'en (here the completed construction (ould be for the use of pri'ate indi'iduals.

18 Furthermore9 ,ection %> of the Heneral Conditions for @uilding Contracts /A,! 144>1 states that all persons on the construction site in the ser'ice of a contractor must display identification of themsel'es and their employer. The Heneral Conditions for @uildings Contracts delegate the responsibility for management of personal identification to the proDect super'isor. .ccording to la(9 ho(e'er9 the obligation rests (ith the construction contractor. =uring procurement it must be confirmed that the subcontractor is a(are of the use of compulsory identification9 and of the access control system in operation on the construction site. $.6. !ccess control The Ho'ernment =ecision on the ,afety of Construction 3or) re*uires that the proDect super'isor maintain a list of (or)ers employed on the construction site. To this end a reliable access control system should be created for construction sites. .ccording to ,ections 7# and 7$ of the .lien s .ct the proDect super'isor must )eep information on the grounds for the right to (or) of the foreign (or)ers in his or her employment at the (or)place for at least the duration of the construction (or). This information should also be sho(n on the pass list. . pass list template is attached to this guide. In 'arious terms and conditions and in legislation the proDect super'isor has been prescribed the obligation to ta)e care of the general direction of the construction site. In order to carry out the obligations stipulated9 access to the construction site of unauthorised persons must be pre'ented. This obDecti'e may be implemented by ma)ing use of an access control system on the site9 (hereby a pass is issued to persons ha'ing a right to access9 and a log )ept of passes issued. .long (ith the issuing of a pass the (or)er is gi'en a site guide and care is ta)en that the (or)er becomes familiar (ith it. The access control system can be implemented in such a (ay that the I= (ith photograph acts as a pass sho(ing9 in addition to personal identification9 that the person has a right to be at the site. For procurement it must be confirmed during contract negotiations that the company employing foreign labour is committed to presenting information to the site management on the foreign (or)ers grounds for the right to (or). This can be confirmed by attaching a clause to the contract based on .ppendi" I. $.7. 3TS agreement relating to use of e#ternal la"our Regulations concerning the use of e"ternal labour differ according to the 'arious collecti'e agreements. Regulations of the UT, agreement forming part of collecti'e agreements relating to the use of e"ternal labour (hich concern subcontracting9 labour leasing and

19 contractor s liability9 are in force also in those cases (here a foreign6registered company employing foreign labour operates as subcontractor or hirer of labour. The UT, agreement re*uires that a clause be included in the subcontract to the effect that the subcontractor or company engaged in labour leasing underta)es to comply (ith the sector s general collecti'e agreement and (ith employment and social (elfare legislation. This can be ta)en care of through contractual means by attaching the clause in .ppendi" I of this guide to the contract. ?ired (or)ers in this conte"t are held to be (or)ers posted to Finland by a foreign company and (hose (ages are calculated on an hourly basis. This is the situation (hen a foreign employee performs (or) under the management and super'ision of a Finnish contractor and the Finnish contractor only pays his or her contract partner the agreed hourly rate for the (or). $.18. 5eclarations to t e ta# aut orities The most notable organisations in the construction industry ha'e agreed that all parties in the sector acting as contractors in construction contracts notify the ta" administration of the name and contact information of contractors and contract price information /total in'oicing or agreed contract amount1 in their contracts. 7ame9 contact and contract price information should consist of name of contractor business I= address name of person in charge /also of the foreign company s representati'e in Finland1 name of the construction site type of (or) /for e"ample9 painting1 contract price /total in'oicing or agreed contract amount1 date of commencement of (or) and estimated completion date Fuarterly notification must be gi'en of all (or) ordered by the same contractor (here the total amount /total in'oicing or agreed contract amount1 is minimum %9000 euros per *uarter. $. 11. C ec+ list for su"contracting and la"our leasing agreement 1. =emand that the subcontractor or company leasing labour deli'ers the follo(ing accounts1. an account of (hether the company is entered in the 2repayment Register9 the !mployer Register and the Ealue .dded Ta" RegisterC 21 an e"tract from the Trade RegisterC

20 #1 a certificate of ta" payment or of ta" debt9 or an account that a payment plan has been made regarding a ta" debtC $1 certificates of pension insurances ta)en out and of pension insurance premiums paid9 or an account that a payment agreement on outstanding pension insurance premiums has been madeC and %1 an account of the collecti'e agreement or the principal terms of employment applicable to the (or). 2. The foreign subcontractor and company leasing labour must gi'e the contractor information corresponding to the accounts and certificates referred to abo'e in an understandable language9 for e"ample Finnish9 by presenting an e"tract from a register complying (ith the legislation of the country (here the company is domiciled9 or an e*ui'alent certificate or in some other generally accepted (ay. The information re*uired 'aries according to the company s country of domicile. .t least the follo(ing information must be obtained1. E.T number and e"tract from the 2repayment Register9 or ta" cardC 2. an account issued by an authority in the country (here the company is established (hich corresponds to an e"tract from the Trade Register9 indicating the company signatoriesC #. a certificate issued by the ta" authorities of the appropriate country (hich sho(s that the company has paid its ta"esC $. a certificate for its employees for pension insurance9 or the e*ui'alent9 complying (ith the legislation of the appropriate country9 for e"ample the ! 101 certificateC %. (hich generally binding Finnish collecti'e agreement is applicable to its employees. #. Chec) that the foreign company appoints a representati'e /name and contact information in Finland1 and is a(are of the representati'e s obligations.
$.

Chec) that the employees ha'e the necessary 'alid residence permits for employed (or)ers and that the terms of their employment are in accordance (ith Finnish employment legislation and the current collecti'e agreement. Chec) that the company employing foreign labour is prepared to present information to the site management on the foreign (or)ers grounds for the right to (or).
%.

Chec) that the foreign (or)ers are ade*uately co'ered by personal accident insurance.
&.

21 Chec) that the subcontractor or company leasing labour is a(are of the use of compulsory identification9 and of the access control system in operation on the construction site. 7. Chec) that the subcontractor or company leasing labour underta)es to comply (ith the sector s general collecti'e agreement and (ith employment and social (elfare legislation. /For e"ample (ages9 holiday pay and compensation for shortened hours are defined on the basis of the collecti'e agreement1 >. Chec) that the subcontractor or company leasing labour is a(are that the ta" administration must be notified of contract information on a *uarterly basis /name and contact information of contractors and contract price information9 that is9 total in'oicing or agreed contract amount1. %. Site measures re/uired in use of foreign la"our In the case of a foreign employee directly employed by a Finnish company the employer s obligations regarding the payment of (ages are the same as in the case of a Finnish employee. <n the part of the Finnish subcontractor using foreign labour or company leasing labour the grounds for the foreign (or)ers right to (or) must be established /citi5en of an !U0!!. country9 a citi5en of a third country re*uires a residence permit for an employed (or)er1 a copy of passport must be re*uested or alternati'ely9 from an !U0!!. citi5en9 a copy of official personal I=

. foreign subcontractor or company leasing labour must pro'ide the follo(ing information for each (or)er a copy of passport or alternati'ely9 from an !U0!!. citi5en9 a copy of official personal I= name and address in Finland of the employing company and representati'e the grounds for the right to (or) /citi5en of an !U0!!. country9 a citi5en of a third country re*uires a residence permit for an employed (or)er1 posted (or)er s certificate /! 101 or e*ui'alent1 an account of the applicable collecti'e agreement and of the (or)er s employment terms

The foreign (or)er s employer must obtain a personal I= (ith photograph for its (or)ers9 in accordance (ith Finnish legislation. The information on the I= must include at least name9 photograph and the name of the employer /the payer of (ages1. The (or)er must )eep this identification 'isible (hile (or)ing on the site.

22 <n the basis of the I= (ith photograph the (or)er (ill be issued (ith a site pass and his or her information (ill be logged on the pass list. The foreign (or)ers grounds for the right to (or) (ill also be noted on the list /for e"ample residence permit9 !U citi5enship9 etc.1 The proDect super'isor s obligation regarding occupational safety re*uires the contractor to ensure that hired (or)ers and those employed by a subcontractor (ho are (or)ing on the site also recei'e (or) familiarisation. <ccupational safety and health authorities must be pro'ided (ith information upon re*uest on posted (or)ers and the terms of their employment9 and accounting of (or)ing hours and (ages9 etc. The (or)ers representati'e /shop ste(ard9 site liaison1 has the right to obtain information on posted (or)ers and the terms of their employment and (or)ing hours. 0ules applica"le to site 'isits In the general agreement attached to the collecti'e agreement it is agreed thatRepresentati'es of participating unions9 ste(ards or other of their named representati'es ha'e the right9 in matters relating to application of the collecti'e agreement9 to 'isit sites9 agreeing a suitable time for the purpose (ith the appropriate employer s representati'e (ho are either on site or in an other(ise representati'e capacity. The Finnish Construction Trade Union9 as a participating union in the collecti'e agreement9 has the right to ensure that the employment contracts of both Finnish and foreign employees comply (ith the construction sector s collecti'e agreement. 9onitoring "y t e aut orities The monitoring of (or) permits for foreign (or)ers is the pro'ince of the authorities and the contractor. In practice the parties conducting monitoring on behalf of the authorities are the police9 the border guard9 the ta" authorities and the labour protection districts. +abour protection districts if they (ish can carry out site inspections9 (ith or (ithout the police and ta" authorities9 for the purpose of monitoring (or) permits and also chec)ing that the employer is complying (ith his or her obligations. (. 3seful contact information This guide may be ordered from the follo(ing addressesRa)ennusteollisuuden Iustannus RTI <y9 tel. J#%> 4 1 2441

23 (((.ra)ennusteollisuus.fi !urope !uropean @usiness Register (((.ebr.org Finland Confederation of Finnish Construction Industries RT9 tel. J#%> 4 1 2441 (((.ra)ennusteollisuus.fi Finnish Construction Trade Union9 tel. J#%> 4 770 21 (((.ra)ennusliitto.fi .pplication for (or)er s residence permit (((.mol.fi0tyolupa0 7otification of registration for a (or)er from a ne( !U 8ember ,tate (((.mol.fi0finn(or) Chec)ing of E.T number /al' Knumero1 (((.'ero.fi Finnish Centre for 2ensions0ad'ice9 tel. J#%> 10 7%1 $21&9 (((.et).fi 8inistry of ,ocial .ffairs and ?ealth (((.stm.fi Register on @ans on @usiness <perations (((.oi)eus.fi0oi)eusre)isteri)es)us @usiness Information ,ystem (((.ytD.fi 7ational @oard of 2atents and Registration of Finland (((.prh.fi Construction Fuality .ssociation (((.rala.fi Finnish Roofing .ssociation (((.)attoliitto.fi Russia Russian ta" office (((.nalog.ru

24 !stonia !"tracts from the Trade Register /:Lriregistri b6)aarti; in !stonian1 from the Centre of Registers and Infosystems (((.eer.ee0 certificate of ta" debt /;TMend ma)su'Mlgne'uste puudumise; in !stonian1 from the !stonian Ta" @oard /8a)suamet1 (((.ma.ee Ta" information!stonian Ta" and Customs @oard 7ar'a mnt 4D9 1%17& Tallinn legal persons- J#72 >>00>129 Durisi)Nemta.ee E.T information- J#72 >>00>1#9 )aibema)sNemta.ee (((.emta.ee 2osted (or)er s certificate!stonian 7ational ,ocial Insurance @oard9 +embitu 129 1%012 Tallinn9 tel. J#72 &$0> 120 Tel. J#72 &$0>11>9 Fa"- J#72 &$0>1%% !6mail- s)aNensib.ee (((.ensib.ee Companies registered in !stoniaCentre of Registers and Infosystems +M))e $9 140>1 Tallinn tel. J#72 &>0 #1&09 J#72 &>0 #1&%9 fa"- J#72 &$& 01&% ri).infoNDust.ee https-00ar.eer.ee Latvia Latvian Company Register www.ebr.lv Slovakia (((.ors).s) (((.employment.go'.s) (((.build.go'.s) (((.statistics.s) (((.finance.go'.s) (((.5bier)a.s) The Register of Companies 8inistry of 2ensions and 7ational Insurance of the ,lo'a) Republic 8inistry of Infrastructure and regional de'elopment of ,R ,tatistic office of ,R The =epartment of the !"che*uer /ta"ing authority1 Collection of la(s

25 C5ech Republic (((.Dustice.c5 http-00d(.c5so.c50rs(D0dota5Gen.Dsp 2oland The 2olish Chamber of Commerce 00607$ 3arsa(9 Trebac)a $ ph /J$> 221 &#0 4& 00 fa" /J$> 221 >27 $& 7# 2resident- 8r. .ndr5eD .rendars)i9 aarendars)iN)ig.pl (((.)ig.pl Corporation of @uilding !ntrepreneurs U7I@U=9 00617% 3arsa(9 Oana 2a(la II 70 lo). 100 tel. /J$> 221 &#& #$ 7&9 fa" /J$> 221 &#& #$ 7> 8s. @arbara Reduch63idels)a )pbunibudN(p.pl

26 !))EN5I: I Terms to "e included in t e su"contractor and la"our leasing company&s agreement @elo( is presented the contract clause to be included in a contract made (ith Finnish or foreign subcontractor or company leasing labour in order to fulfil the obligations referred to earlier in this guide. Information referred to in the .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut If the contract is in force for more than 12 months9 the subcontractor or company leasing labour must pro'ide the contractor9 at minimum 12 month inter'als during the contractual relationship9 (ith information on payment of ta"es and pension premiums referred to in the .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut. <bligation to pro'ide personal accident insurance . foreign subcontractor or company leasing labour is obligated to ta)e out personal accident insurance for its employees co'ering possible accidents at (or) and damages caused by occupational illnesses. Residence permit for an employed person . subcontractor or company leasing labour (ith a foreign employee in its ser'ice on the contractor s site /other than a citi5en of an !U0!!. country1 is obligated to pro'ide site management or other representati'e of the contractor9 for for(arding if necessary9 the employee s 'alid residence permit for an employed person. .pplicable collecti'e agreement 3here the subcontractor or company leasing labour is not a member of a Finnish labour mar)et organisation nor for that reason bound to comply (ith any form of collecti'e agreement on the basis of its membership9 it shall comply (ith the belo(6mentioned collecti'e agreement for the rele'ant (or) sector and (ith employment and social (elfare legislation P / 1 Construction industry P / 1 @uilding engineering P / 1 Ci'ic engineering P / 1 2ainting industry P / 1 .sphalting industry P / 1 3aterproofing industry P / 1 Flooring industry P / 1 @uilding product industry P / 1 8etal industry P / 1 <ther9 (hichQGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG .ppointing a representati'e

27 . foreign contractor posting an employee to Finland is a(are of its obligation to appoint a representati'e in accordance (ith the 2osted 3or)ers .ct before commencement of the employment period. The representati'e9 according to ,ection $ of the 2osted 3or)ers .ct9 acting on behalf of "" <y isGGGGGGGGGGGGGGGGGGGG9 contact detailsGGGGGGGGGGGGGGGGGGG !mployment may not begin until the contractor has been pro'ided (ith the representati'e s contact information9 including address in Finland. If there is a change in representati'e9 the information for the ne( representati'e must be gi'en to the contractor (ithout delay. The abo'e6mentioned representati'e has an obligation to )eep 2ersonal I= The subcontractor /company name1 must ensure that all employees in its ser'ice9 or possibly leased9 on the construction site carry a 'isible personal I= (ith photograph. Furthermore9 the subcontractor must pro'ide the main contractor9 prior to commencement of the employment period9 (ith the names and dates of birth of its o(n employees and those of its possible subcontractors or leased employees for the purpose of issuing passes re*uired for the construction site and for monitoring their authenticity. Clarification relating to terms of employment If during (or) on the site confusion arises as to (hether a subcontractor or company hiring labour has paid (ages according to the collecti'e agreement agreed abo'e R and other compensation re*uired by the collecti'e agreement R to the employees in its ser'ice9 the subcontractor or company hiring labour or its representati'e referred to in this contract clause are obligated to present the contractor (ith the reliable documentation re*uired to clarify matters concerning (age and other compensation payment. The construction contractor and main contractor also ha'e the right of access to such documentation in the case (here neither the construction contractor nor the main contractor fulfils the role of contractor according to the contract. Inclusion of this clause in o(n contracts information identifying the employer /name9 business I=9 address1 information identifying the employee /name9 personal I=9 age1 an account of the posted (or)er s terms of employment /duration of assignment9 place of (or)9 tas)s9 applicable collecti'e agreement9 grounds for calculating (ages9 (or)ing hours1 an account of the grounds for the posted (or)er s right to (or) /free mo'ement9 residence permit for an employed person9 etc.1 (or)ing hours accounting for the posted (or)er s assignment in Finland information on the (ages paid to the posted (or)er

28 The subcontractor or company hiring labour shall include this clause in its o(n subcontract. =isclosure of information to the ta" authorities The contractor shall notify the ta" authorities of name and contact information and contract price information on a *uarterly basis. The information to be disclosed is- name of contractor9 business I=9 address9 name of person in charge /also of the foreign company s representati'e in Finland19 name of the construction site9 type of (or)9 contract price /total in'oicing or agreed contract amount19 date of commencement of (or) and estimated completion date. Conse*uence of brea)ing the terms of the contract clause The contractor has the right to terminate this contract if the subcontractor or company hiring labour has not9 prior to commencement of the (or)9 pro'ided accounts and certificates in accordance (ith the .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut9 has not9 during the contractual relationship9 pro'ided the contractor (ith the certificates re*uired by the .ct on the Contractor s <bligations and +iability (hen 3or) is Contracted <ut9 as hereby agreed9 has not ta)en out for its employees the personal accident insurance referred to in this agreement9 does not present site management or other representati'e of the contractor (ith the rele'ant residence permit for an employed person for the employees in its ser'ice9 or an account as to (hy a permit is not re*uired9 does not comply (ith the collecti'e agreement (hich this agreement mentions as being applicable to the employment relationships of its foreign employees on sites referred to herein9 has not appointed the representati'e referred to in this contract clause9 or notified of a change in appointment and contact information9 or the representati'e has not properly discharged his appointed duties9 has not9 (ithin one (ee) of a demand presented by the contractor9 presented sufficient account for the clarification of matters concerning its payment of (ages to employees and other compensation9 has not ensured that its o(n employees or its leased employees ha'e 'isible personal I= (ith photograph or has not pro'ided the main contractor (ith the information mentioned abo'e in this contract clause or has not included this contract clause in its o(n subcontract9 does not comply (ith the <ccupational ,afety and ?ealth .ct and its regulations9 or those gi'en by the proDect super'isor9 relating to occupational safety.

If the subcontractor or company hiring labour9 (ithin one (ee) of being presented (ith a demand9 failing to pro'ide the contractor (ith a satisfactory account of

29 (ages paid and other compensation to its employees or those of its o(n subcontractors or hired labour9 shall pay a contractual penalty in the amount of GGGGG S for each (hole (ee) commenced. The contractor has the right9 (ithout referring to the subcontractor or company hiring labour9 to (ithhold and deduct from the contractual amount or other recei'ables in order to pay recei'ables arising from the employment relationships of a contract partner s employees or to pay compensation for other damages caused by a contract partner.

30 -IST OF SITE )E0SONNE-2)!SS -IST

CONST03CTION SITE Construction contractor 9ain contractor Contact )erson ) one Fa# Super'isor2foreman ) one Fa#
2ermit0no. !mployee s family name !mployee s first name =ate of birth dd.mm.yy =omicile Hrounds for right to (or) of foreign employee !mployer @usiness I= 2ass 'alid from dd.mm.yy 2ass e"pired dd.mm.yy 2ass returned dd.mm.yy 7.@.

12.82.288, !))EN5I: 2

8 9ei+;l;inen 9atti 82.8$.(1 Tallinn 0esidence permit for an employed person Firma Oy 123$%(,<6 1.2.2883 31.12.288$ 31.12.288$ 1 Tei+;l;inen Tei=a 82.8$.,1 >erlin E3 citi4en 1ritys Oy 6,(%$32<1 1.12.2883 31.12.288$ 31.12.288$

!))EN5I: 3 0EST0ICTE5 .O0? )E09IT )assport and Finnis residence permit stic+er containing *or+ permit information. 0EST0ICTE5 TO E9)-O1E0 )assport and Finnis residence permit stic+er containing *or+ permit information.