Client – pay attention to the risks of labour exploitation

Labour exploitation refers to a situation where an employee has to work in unfair or unlawful circumstances. It may include underpaid work, threats or working without a genuine opportunity to refuse tasks. There are different levels of exploitation. At worst, it meets the characteristics of human trafficking.

Labour exploitation is a growing phenomenon, which is explained by factors such as increased migration to Europe, changes in the labour market and an improved capability to identify the phenomenon.

Poor working conditions and labour exploitation can occur across business sectors. Especially in long subcontracting chains, supervising subcontractor activities is difficult, resulting in a higher of the company to be involved in labour exploitation due to abuses or negligence related to a subcontractor’s working conditions.

Detecting labour exploitation in a subcontracting chain may be expensive for a company. Abuses often attract broad media attention, resulting in changing attitudes towards the company among customers and civil society. Negative publicity may damage the company’s reputation and, as a result, reduce demand for its products or services. In the worst-case scenario, cases involving labour exploitation can lead to years of criminal investigation and conviction.

In Finland, labour exploitation has been observed especially in the cleaning, restaurant, service, construction and berry picking sectors. The risk of exploitation is higher in sectors with extensive use of foreign labour.

Characteristics of labour exploitation and human trafficking

• Deception and misleading: The employee agrees to the work, but the actual working conditions, such as pay, working hours or housing, are worse than originally promised.
• Pressurising and threats: The employee is not free to leave the job without fear of punishment, revenge or other negative consequences.
• Dependency on the employer: The employee has insufficient language skills, debt or a lack of awareness of their rights.
• Lack of alternatives: The employee remains in the employment relationship because there is no real possibility of changing jobs or seeking help, or the risk is otherwise too high.

How a company can become unwillingly involved in labour exploitation

• Subcontracting:
  • The client or the main contractor allows long subcontracting chains, which make it difficult to monitor the employees and their working conditions.
    • Remember that the Act on the Contractor’s Obligations and Liability when Work is Contracted Out obliges the contractor to investigate the contracting partner’s background before entering into an agreement. This applies to matters such as registration, tax debts and pension insurance. The purpose of the Act is to combat the grey economy and promote responsible subcontracting.
• Posted employees:
  • A contractor is using foreign posted employees without adequate supervision, resulting in a risk that the minimum terms of employment may not be complied with.
• Use of products or services:
  • A provider of a service or product may, for example, sell services used for transporting or accommodating victims without awareness of any abuses related to the activity

How can companies prevent labour exploitation?

1. Identify the risks – especially in subcontracting chains and the use of foreign labour.

   Know the risks of exploitation before entering into a contract. Be vigilant to make sure you do not unwillingly contribute to labour exploitation.

   If there is anything related to future working conditions or contractual terms that raises your suspicions about the work not being genuine self-employment, stop and consider whether you should further investigate the matter before starting the work. Possible red flags include:

• • the new workers at a construction site include a considerably high number of subcontractors using an invoicing cooperative or a similar service, or are claimed to be acting as independent contractors,
  • work based on a contract is such that the freedom of an entrepreneur is not realised in it and the work needs to be performed under work management and site supervision and/or their responsibility for the quality of the work contracted out, and this cannot be convincingly divided between several individual entrepreneurs (e.g. a broad-surface pour contract, reinforcement contract, demanding asbestos removal contract),
  • other indications of the exploitation of disadvantaged individuals are revealed in the matter, such as poor or non-existent language skills, which result in insufficient knowledge of one’s rights.

2. Prepare recruitment and hiring recommendations aimed at preventing labour exploitation – for your own personnel and subcontractors.

3. Provide training and information – both for your own personnel and subcontractors.

4. Act without delay if you suspect exploitation – contact the authorities.

Who to contact?

• Police: www.poliisi.fi/en
• National Assistance System for Victims of Human Trafficking: telephone +358 2954 63177
• Occupational safety and health authorities: www.tyosuojelu.fi/en

Work Help Finland application is intended for foreign workers who come to or are already residing in Finland. The application contains information on the rights and obligations of employees in Finland and information about where to find help if an employee suspects that they have been mistreated. From the employer’s perspective, the application helps ensure that foreign workers receive the information and support they need, which promotes equal and fair treatment in the workplace.

Read more:

HEUNI: Guidelines for businesses and employers for risk management in subcontracting chains (in Finnish)

Observations made in the monitoring of foreign employees by the Regional State Administrative Agency, occupational health and safety

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