Eligibility requirements for pay security
Pay security is only paid to employees in an employment relationship. An employment relationship is in question when the employee performs work on behalf of an employer under its management and supervision in exchange for wages or another form of compensation. Pay security will not be awarded to the managing director of a limited liability company, the general partner of a limited partnership, the general partner of a general partnership or a sole proprietor. Other persons holding administrative authority in a company may also be excluded from eligibility for receiving pay security.
One of the requirements for receiving pay security is employer insolvency. This occurs when, for example:
- the employer declares bankruptcy
- the employer is unable to pay its liabilities in execution proceedings
- the employer has neglected to pay its tax withholding or employer contributions on time
- the employer's insolvency has been otherwise verified by a pay security authority.
The pay security applicant does not need to submit any account of the employer's insolvency - this will be done by the pay security authority.
Clear and undisputed claim
Pay security is only paid for clear and undisputed claims. If the employer disputes the pay security claim and its validity cannot be ascertained by means of the pay security procedure, the pay security cannot be paid for the claim until its amount and grounds have been ruled on in a final judgement.
- Pay Security Act 27.11.1998/866 (finlex.fi)
- Council of State Ordinance on Pay Security 22.12.2009/1276 (finlex.fi, in Finnish and Swedish)
- Seamen's Pay Security Act 15.12.2000/1108 (finlex.fi)
- Seafarers' Employment Contracts Act 756/2011 (finlex.fi)
- Maritime Act 674/1994 (finlex.fi, in Finnish and Swedish)
- Electric applying (partially English, Local government e-service sahkoinenasiointi.ahtp.fi)
- How to apply for pay security (in English, Suomi.fi)
- Application for pay security A: employee (in English, pdf)
- Data protection and register description of PATU pay security system (in Finnish, pdf)
- Data protection and register description of PATU pay security system (in Swedish, pdf)
- Register description of Gorilla debt recovery system (in Finnish, pdf)
- Register description of Gorilla debt recovery system (in Swedish, pdf)
Monday - Friday 12:00 - 15:00
From Finland: 0295 020 020
International: +358 295 020 020
Call prices (in Finnish)
Centre for Economic Development, Transport and the Environment for Uusimaa / Pay security
PO Box 54