Summer job inspections: Supervising wages and the status of light entrepreneurs

Young people with summer jobs must receive the pay specified in the collective agreements

In last year’s inspections, it was found out that some of the young employees were paid less than what they should have been paid according to the collective agreement and their work experience.

In most sectors, the collective agreement determines the minimum wage. Many collective agreements also contain provisions on the wages paid to young persons. On average, the wages paid to young employees are between 70% and 90% of the lowest wages specified in the wage scale.

If there is no collective agreement in the sector, the pay is based on the employment contract. Even if the pay is not specified in the employment contract, under the Employment Contracts Act, the employer must pay a reasonable normal compensation for the work performed.

Evening bonuses, and Sunday and holiday compensations specified in the law may not be included in the basic pay. They must be paid separately and itemised in the pay slip.

“If you think that you are not paid correctly, you can contact the occupational safety and health authority’s telephone service for help,” explains Saila Lähdesmäki, occupational safety and health inspector in the Regional State Administrative Agency for Southern Finland.

Inspector can check whether the young person is a genuine light entrepreneur

Young persons can also perform seasonal tasks as self-employed persons without an employment relationship.

“Inspectors have found that sometimes young persons only get a summer job if they agree to work as light entrepreneurs even though in practice they do not work independently as self-employed persons,” Lähdesmäki notes.

The parties cannot freely agree whether the work is performed in an employment relationship or as self-employed as the matter is laid down in the law. If the characteristics of an employment relationship are met, the employee is in an employment relationship. In that case, the summer employee also has the right to sick pay and holiday compensations.

If the inspectors meet light entrepreneurs during their visits, they will check whether they are genuinely self-employed or work as employees. 

What is the difference between a self-employed person and an employee?

If you are self-employed, you are free to decide how, when, at what price and for whom you work. As a self-employed person, you must take care of such matters as compulsory insurance and taxes. Light entrepreneurs are also considered as self-employed persons.

You are probably an employee if the company ordering the work can decide when you work, what you do and when you can have your breaks. In that case, if you are a summer employee, you also have the rights of an employee, such as paid annual holiday, paid sick leave, overtime compensation, preventive occupational health care and accident insurance.

If you are not sure about your own situation, you can ask for advice from the occupational safety and health authority. 

The inspections are carried out unannounced

Most of the occupational safety and health inspections at summer jobs are carried out unannounced. In addition to pay matters, the inspectors also check compliance with employment contracts, giving of pay slips, and workplace orientation.

The inspectors interview summer employees, tell them about the rules of working life and explain how to turn to the occupational safety and health authority for help. The occupational safety and health authority’s telephone service is available at +358 295 016 620.