The purpose of pay security is to ensure the payment of the employee's outstanding wages deriving from an employment relationship in case the employer is unable to pay.

The employee is entitled to pay security in case:

• the work was performed in Finland; or
• the work was performed in the employment of a Finnish employer abroad and the employee is domiciled in Finland. Work carried out abroad does not give an entitlement to pay security for the part that the employee is entitled to a similar benefit in another state.

Work performed for a Finnish employer in Finland gives an entitlement to pay security despite the nationality of the employee.

Work performed in Finland does not give an entitlement to pay security, however

• if it was carried out by a worker employed by a foreign employer coming to work in Finland on a temporary basis.
• the Finnish client companies are not responsible for the pay security of a hired-labour employee posted in Finland.

There is separate legislation providing for the pay security of seamen.

Applications for pay security, advice and forms

An application for pay security is processed and the decision in the matter made by the Employment and Economic Development Centre in the domicile of the employer, which can be contacted for advice in submitting the application.

The application for pay security is either submitted to an Employment Office or a Centre for Economic Development, Transport and the Environment. An application for pay security concerning work performed abroad can also be submitted to a Finnish Diplomatic Mission.

Pay security application forms are available in Employment Offices, Centres for Economic Development, Transport and the Environment and on the Internet (link on the right).