Grey economy
Negligence fee
A negligence fee may be imposed on a contractor if any of the following criteria are fulfilled:
- The contractor has neglected the obligation to check.
- The contractor has signed an agreement with a trader subject to a ban on business operations or with an enterprise whose manager or other person in a comparable position is subject to a ban on business operations.
- The contractor has signed an agreement with a partner concerning whom they must have known that the partner does not intend to comply with statutory obligations and payments as a contracting partner or as an employer. The contractor has entered into a contract concerning subcontracted work or temporary agency work even though it should have realized based on common knowledge from the terms of contract that the contracting partner will not be able to meet the general obligations regarding employment, taxation or social insurance based on agreements and legislation.
The negligence fee may be from EUR 2,440 to EUR 24,420.
An increased negligence fee may be imposed if the contractor has signed an agreement with a partner subject to a ban on business operations or has signed an agreement with a partner concerning whom they must have known that the partner does not intend to comply with statutory obligations and payments. An increased negligence fee might come into question, for example, when the contractor has concluded an agreement with the contracting partner, although the contractor may have understood from the offered agreement that the work cannot be conducted with the offered rate for achieving the result determined in the contract such that the contracting partner would be responsible for the payment of wages pursuant to the collective agreement as well as statutory liabilities. An increased negligence fee can also be issued when the contractor has concluded an agreement regardless of the contracting partner’s significant tax debt. The increased negligence fee may be from EUR 24,420 to EUR 79,380.
The negligence fee is determined separately for each agreement. The decision to impose a negligence fee is made by the occupational safety and health division at Regional State Administrative Agency of Southern Finland.