palvelussuhteeseen

Palvelussuhteeseen refers to an employment relationship between an employee and an employer in Finland. It describes a work arrangement in which a person provides work under the employer’s direction and control in exchange for compensation. The relationship is characterized by personal performance, a degree of subordination, continuity, and mutual obligations, such as the employer assigning tasks, supervising work, and paying wages.

Legal framework and rights: In Finland, the employment relationship is primarily governed by the Employment Contracts Act (Työsopimuslaki) and supplemented by sector-specific collective agreements. Employees typically acquire rights such as paid annual leave, sickness and health protections, and access to social security benefits. Pension accrual, unemployment protection, and other protections are often arranged through statutory schemes and pension funds (for example TyEL) and are funded via employer contributions. The terms of the relationship may be set out in a written or oral contract, and may also be shaped by applicable collective agreements.

Formation and assessment: Whether a worker is in a palvelussuhteeseen is determined by the actual nature of the arrangement, not solely by its label. Key factors include personal performance, subordination and instruction, the employer’s control over when and how the work is performed, and the use of the employer’s tools and premises. A continuous, integrated relationship with instructions and supervision typically indicates an employment relationship rather than an independent contractor arrangement.

Impact and significance: The status affects taxation, social security contributions, pension rights, and eligibility for labour market protections. Misclassification of workers as independent contractors can lead to legal and financial consequences for both parties and may trigger investigations by authorities. Understanding whether a worker is in a palvelussuhteeseen clarifies rights, duties, and obligations for employers and employees alike.