Tilaajavastuulaki: A Complete Guide for Finnish Businesses

Tilaajavastuulaki (Act on the Contractor’s Obligations and Liability, 1233/2006) is the strongest subcontractor compliance law in the Nordics. It requires any company using subcontracted work to verify seven mandatory documents before entering into a contract. Finnish authorities conducted 1,289 inspections in 2024 alone.

When Does Tilaajavastuulaki Apply?

The act applies in two situations:

• Subcontracting: when the contract value exceeds EUR 9,000 (excluding VAT)
• Temporary agency work: when work lasts more than 10 working days

Important: tilaajavastuulaki applies to all sectors, not just construction. Any business using subcontracted cleaning, property management, IT services, or other services above the EUR 9,000 threshold must comply.

The Seven Mandatory Documents

All documents must be no older than 3 months at the time the contract is signed:

1. Registry status — proof of registration in the Prepayment Register (ennakkoperintärekisteri), Employer Register (työnantajarekisteri), and VAT Register
2. Trade Register extract — current business registration from PRH (Patentti- ja rekisterihallitus)
3. Tax debt certificate (verovelkatodistus) — confirmation of no tax debt, or an existing payment arrangement
4. TyEL pension insurance certificate — proof that pension coverage is in place and premiums are paid
5. Applicable collective agreement — documentation of which collective agreement is applied, or principal employment terms
6. Occupational health care proof — proof of arranged occupational health care services
7. Workers’ compensation insurance certificate (tapaturmavakuutus) — certificate of coverage under the Finnish Workers’ Compensation Act

Penalties for Non-Compliance

Violation	Penalty
Standard negligence (laiminlyöntimaksu)	EUR 2,440 – 24,420
Aggravated negligence (korotettu laiminlyöntimaksu)	EUR 24,420 – 79,380

Aggravated penalties apply when the contractor knew or should have known that the subcontractor was non-compliant and proceeded anyway.

The 3-Month Challenge

The 3-month validity requirement creates a unique compliance management challenge. A tax debt certificate collected in January is invalid by April. For businesses with many subcontractors, this means a continuous cycle of document collection and verification. Spreadsheets break down quickly under this load.

How VendorProof Helps

VendorProof tracks all seven document categories for every subcontractor, with automated reminders as documents approach the 3-month expiry limit. The system sends alerts at 30, 14, and 7 days before expiry — both to you and to your subcontractors.

Self-service upload links let your subcontractors upload renewed documents directly, without email back-and-forth. The audit log records every action, providing exactly the kind of documentation authorities expect during inspections.

At a fraction of the cost of Vastuu Group, VendorProof provides the document tracking and expiry management that Finnish businesses need. Free for up to 10 subcontractors, no credit card required.