Finnish trade union calls for stricter penalties against seasonal worker exploitation but authorities say current laws prevent action

A major Finnish trade union has proposed heavy fines for companies exploiting seasonal workers, but the country’s occupational safety authority states that current legislation provides no means to enforce such penalties, Yle reports.

In Finland, violations of collective bargaining agreements cannot be sanctioned unless the treatment of workers meets the criteria for offences such as human trafficking. This stands in contrast to countries like the Netherlands, where labour inspectors can impose fines of up to €10,000 per employee for underpayment.

Annika Rönni-Sällinen, chair of the Service Union United (PAM), argued in Yle’s A-studio programme that Finland should adopt tougher measures. “Criminalising underpayment could act as a deterrent—if caught, employers would face more than just repaying what they owed in the first place,” she said.

The government proposed amendments to the criminal code in March to combat labour exploitation, targeting issues like wage theft, illegal recruitment fees, and unreasonable working conditions. However, Norway remains the only European country to have fully criminalised underpayment, doing so in 2022.

Licensing system proposed—but authorities question feasibility
Timo Lappi, CEO of Mara, the industry association for tourism and hospitality employers, dismissed calls for new legislation as ineffective. Instead, he advocated for a licensing system for programme service providers—such as activity tour operators—similar to those in transport or alcohol service sectors.

“Authorities could revoke licences if problems arise,” Lappi said, adding that this would allow early scrutiny of company backgrounds.

But Erik Tarnaala, head of the occupational safety unit at the Finnish Licensing and Supervision Authority (LVV), called the proposal “unusual.” “I don’t see how such a licence could be evaluated,” he said, noting that labour compliance is not typically a basis for industry licensing. Aki Eriksson, a legal expert at LVV, added that licensing is usually tied to safety risks, such as asbestos removal, not wage enforcement.

Delays and foreign firms complicate enforcement
Rönni-Sällinen stressed that current procedures—where sanctions, if any, follow only after lengthy court processes—are too slow. “By the time cases are resolved, foreign workers and even employers may have already left the country,” she said.

While LVV can issue directives and threat-based fines, it lacks authority to compel payment of unpaid wages. The union and industry representatives agreed that reported abuses primarily involve foreign-owned companies, further complicating oversight.