The purpose of the pay security system is to ensure payment of employees’ claims arising from an employment relationship in the event of the employer’s insolvency. The Government proposes to reform the pay security legislation in order to address serious exploitation of workers, streamline the pay security process and combat the grey economy.

The Government proposes that the President of the Republic approve the amendment to the Accounting Act. The legislative amendment will make it easier for the authorities to determine whether foreign companies should pay taxes in Finland. The reform of the Accounting Act is one of the Government’s measures to combat the grey economy. 

On 11 June 2020, the Government adopted a strategy and an action plan for tackling the grey economy and economic crime for 2020–2023. The tackling of the grey economy will focus on prevention, more effective access to information and cooperation between authorities.