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15.06.2026 07:00

“Light entrepreneurship” must be brought under control in cleaning and the service sectors – undermining terms and conditions of employment is now too easy

A phenomenon that undermines terms and conditions of employment is becoming more common in cleaning and other service sectors. In addition to PAM, researchers and the occupational safety and health authority have expressed concern about the issue.

The use of “light entrepreneurs” instead of employees in an employment relationship is becoming more common in the service sectors. An article published today on PAM’s website discusses the phenomenon in the cleaning sector. In the article, companies that have recruited light entrepreneurs justify their actions by referring to the small amount of work available, the obligations arising from hiring an employee, and the minimisation of risks.

A “light entrepreneur” is a person who employs themselves in an entrepreneur-like manner, often without having a sole trader business name, and invoices for the work performed through an invoicing service company. Finnish legislation does not recognise the concept of a light entrepreneur: in Finland, work is performed either in an employment relationship or as an entrepreneur.

– In many cases, “light entrepreneurship” appears in reality to be bogus self-employment. An employment relationship is disguised as entrepreneurship and the risks are shifted onto the worker. At the same time, the collective agreement and labour legislation can be bypassed. This phenomenon must be brought under control before it is too late, warns PAM President Annika Rönni-Sällinen.

The use of entrepreneurs instead of employees has been highlighted not only in the cleaning sector but also in platform work, summer jobs at ice cream kiosks, gyms, the construction sector and event security work. What is decisive is not what is written in the contract, but how the work is actually performed.

If the use of contractor relationships spreads to tasks that do not involve genuine entrepreneurship, there is a risk of creating a two-tier labour market. In that situation, only employees in an employment relationship would have proper terms and conditions of employment and pay.

– We do not want a so-called Wolt model to spread in the labour market, where all risks are shifted onto a worker operating as an “entrepreneur” and security is non-existent, even though, for example in the case of food couriers, the courts have also found that the work constitutes an employment relationship. Bogus self-employed workers lack all the basic rights of Finnish working life, from protection against dismissal to paid leave, Rönni-Sällinen points out.

Researchers are also concerned about the phenomenon. The final report of the Competitive services and quality of work project at Tampere University, funded by the Employment Fund, proposes significant changes to procurement processes as well as to procurement and contractor’s liability regulation in order to prevent the circumvention of employer responsibilities.

In addition, the occupational safety and health authority has reported that disguising employment relationships as entrepreneurship has become more common, and that many such observations have been made during inspection visits.

PAM has proposed that, in order to eliminate bogus self-employment, a rapid method is needed to confirm whether the case involves an employment relationship or entrepreneurship. At present, a decision can only be obtained after a court process lasting years. At the same time, substantial sanctions should be imposed on those commissioning work for deliberately misinterpreting the legal situation.

– The next government must bring bogus self-employment under control. Support and solutions are certainly available, as trade unions, researchers and the occupational safety and health authority are all concerned about the phenomenon. At the moment, it is too easy to undermine terms and conditions of employment, and the risk of getting caught is small, Rönni-Sällinen concludes.

Today, 15 June, marks the International justice day for cleaners. On this day, trade unions around the world seek to raise appreciation for cleaning work and remind everyone that cleaning work must be carried out under fair terms and conditions of employment in a safe environment.

Keywords:

entrepreneurship legislation politics property services sector

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