Transferring Pay Subsidies

Pay subsidy may also be used to help find opportunities on the open labour market for an employee benefiting from the subsidy. The employee may, for example, be transferred to an enterprise to help the employer to estimate the employee’s applicability to the available assignments without taking risks. The transfer is always based on the transferred person’s needs.

The actual employer, who applies for/gains pay subsidy, pays the transferred employee’s salaries. The division of responsibility between the actual employer and the user enterprise is determined in the Employment Contracts Act.

The transfer requires that the user enterprise does not have unpaid taxes or other statutory charges and that it has not neglected the duty to pay salaries.   

If an employee's contract has been terminated by the user enterprise or if the enterprise has laid-off an employee for financial or production-related reasons, and the notice period for these has come to an end during the 12 months prior to applying for pay subsidies, an employee supported with wage subsidies can be transferred if the employee has rehired the employee.

A prerequisite for transferring a person hired with a subsidy to a user company is that the person hired with the subsidy agrees to the transfer and that the beneficiary notifies the TE Office of the transfer before it is implemented using form TEM323.

Report of transfer of current/future employee receiving a pay subsidy to the employ of another employer (user enterprise), form ID TEM323 (in Finnish, pdf)