Starting a Cooperative in Finland

Unremunerated work and marginal employment in a cooperative

Content

According to the established case-law concerning unemployment benefits (the Board of appeal for unemployment benefits and Finnish insurance court) any work related to business can’t be unremunerated. Because cooperatives are businesses, a work in a cooperative cannot be associated with unremunerated work, but the employment authorities classify it as paid work.

A marginal work in a cooperative will not deprive a person of their right to unemployment benefits (e.g., distribution of ads in the evenings etc.) or reduce the amount of the benefit.

The exempt amount is (November 1, 2020):

  • ,€279, if the benefit is paid every four weeks
  • ,€300, if the benefit is paid every month

The main rule is that each euro exceeding the amount permitted reduces the benefit with 50 eurocents. More details about the amount permitted https://www.kela.fi/soviteltu-tyottomyysetuus

If the amount of work done for the cooperative is such that it would inhibits the acceptance of normal full-time paid job, the person is not considered unemployed and has no right to the unemployment benefit. When considering the employment, it is the amount of work, not the amount of pay or remuneration that is decisive.

More information: unemployment funds (www.tyj.fi, www.syt.fi), TE offices (TE-toimistot, www.te-palvelut.fi), Kela offices (www.kela.fi), Ministry of Social Affairs and Health (www.stm.fi), Ministry of Employment and the Economy (www.tem.fi).

How to work as an employer?

CHECKLIST

WHO IS RESPONSIBLE FOR THE EMPLOYER RESPONSIBILITIES?

The board of directors (and the managing director)

Repetitive duties, as keeping the Incomes Register updated, have to be assigned clearly in the financial management

CHECK AND CORRECT

Work contracts

  • are they written?
  • Are they in accordance with applicable law, e.g. Working times
  • How the place of work is worded?

Insurance cover

  • Are the pension and accident insurances valid?
  • Are the risk classes of jobs correct?

Work monitoring supervision

  • Does every employee have a supervisor?
  • Is monitoring and working time documented and certified by the supervisor?

FOLLOW-UP

At least yearly

  • possible changes in work contract matters
  • functioning of the employer’s practices, tools and work distribution
  • Functioning of the whole organization