Principles of Operation
What we expect from our partners
Trust is built on shared principles
Our operating principles include things that are important to us; compliance with laws, ethical practices, labor laws and practices, environmental responsibility, and procurement practices.
Reliable suppliers, subcontractors, and service providers are essential to us. We want to build long-term, interactive, and mutually beneficial partnerships.
We actively contribute to developing the entire industry in a more responsible and ethical direction, and continuously work to ensure good business practices throughout the supply chain.
The Code of Conduct for YIT partners outlines the fundamental principles required for all cooperation, covering legal compliance, ethics, labor, environment, and procurement practices.
Principles of operation in Finland
Contractors must join the Vastuugroup.fi service
YIT requires all Finnish subcontractors to join the Luotettava kumppani -service maintained by Vastuu Group Ltd. Companies from other countries must join the equivalent service (Luotettava kumppani tilaajavastuutiedot service) when possible. Eligibility is determined by the country of origin; currently, companies from Finland, Estonia, Sweden, Latvia, Lithuania, and Poland can join the service. We do not conduct business with contractors who have not joined the service.
This requirement applies to the entire contracting chain and all subcontractors working on our sites.
NB! All subcontractors must include proof of liability insurance in their reports. Minimum coverage required is €1,000,000, and maximum deductible €1,500.
The report must remain valid throughout the contract period.
The above-mentioned requirements do not apply to material suppliers.
Vastuu Group Oy
Luotettava kumppani
The Luotettava kumppani -service retrieves the information required under the Act on the Contractor’s Obligations and Liability when Work is Contracted Out from various registers on behalf of the supplier or contractor and keeps the information up to date at all times. The client’s obligation to verify and responsibility when using external labor is defined in the Act on the Contractor’s Obligations and Liability (1233/2006).
Prevention of the grey economy – subcontracting chains
Subcontracting chains refer to situations where a subcontractor in a contractual relationship with the client (YIT) transfers the contract, or parts of it, onward to another contractor as a subcontract. At YIT, subcontracting chains always require prior approval and must be agreed upon in writing in advance. Any subcontractor within the chain must fulfill the same obligations as the subcontractor in direct contractual relationship with YIT.
Subcontracting chains are often perceived as an indicator of the grey economy. Based on YIT’s experience, they are also where the most significant issues tend to arise. Subcontracting is not entirely prohibited, but it must be controlled and justified. For example, the use of specialized expertise may justify subcontracting, whereas passing on the same scope of work without added value is generally unjustified.
Changing a foreign subcontractor within a chain during a contract
A relatively recent phenomenon involves replacing a subcontractor within a chain—typically the sending company—in contracts with foreign companies, just before the expected time limit defined in tax treaties between countries is reached. The purpose of this is often to avoid the formation of a permanent establishment in Finland, even though the content of the contract remains the same or nearly the same after the change.
The Finnish Tax Administration considers that a foreign contractor forms a permanent establishment and becomes liable for tax in Finland if construction activities in Finland last longer than 6 or 12 months. The required duration varies depending on the tax treaty between countries. For example, under the tax treaty between Finland and Estonia, a permanent establishment is formed if the activity lasts more than 6 months.
Finland has tax treaties with approximately 70 countries. For example, a 6-month limit applies with Greece, Turkey, and Estonia, while a 12-month limit applies with Spain, Ireland, Portugal, Poland, Slovakia, the Czech Republic, Hungary, and all Nordic countries. The applicable time limit must always be verified on a case-by-case basis.
In line with its principles for combating the grey economy and the spirit of the law, YIT has decided that replacing a foreign subcontractor within a chain during a contract without justified reason is not permitted.
Posted workers from outside the EU/EEA must have the right to reside and work in Finland.
We want to ensure fair working conditions for all employees on our construction sites.
In our contracts and subcontracting agreements, citizens from outside the EU/EEA and Switzerland are required to have a residence permit issued by Finland, including the right to work.
The use of posted workers from outside the EU/EEA and Switzerland on YIT construction sites is only permitted in predefined exceptional cases. Acceptable grounds for exceptions do not include normal workforce resourcing, lower labor costs, or general construction, cleaning, or finishing tasks that do not require specialized expertise.
Any exception must be applied for in writing from YIT well in advance. Workers from outside the EU/EEA will not be allowed on our sites without a Finnish work permit or a written exemption granted by YIT.
This policy applies to both YIT’s contractual partners and subcontractors within the contracting chain at all YIT sites.
For further information, please contact Sami Rulja, Sustainability Manager, Supply Chain Management.
