Author: Jussi Jaakkola, Commercial Director, Silta Oy
When a company considers outsourcing payroll management, the conversation inevitably turns to the staff. What will happen to current employees? Will their rights be preserved? How will the change affect them?
These questions are important and legitimate. That is why it is essential to understand what a transfer of business means in practice for the employees being transferred.
Rights Remain Intact—the Law Ensures Continuity
In a business transfer, employees’ status is protected by law. The employment relationship is transferred to the new employer as is, including all rights and obligations. Salary, working hours, accrued vacation, pension rights, and all other benefits are retained. The status of “long-time employee” remains in effect.
No one starts from scratch, and no one has to renegotiate their rights. The transition takes place seamlessly without the employee’s status being compromised in any way.
Familiar faces, familiar processes
In traditional outsourcing, the team is often disbanded and processes change radically. In a business transfer, continuity extends to the work community as well. The same team continues to work together, colleagues remain the same, and contacts at the client company stay familiar.
Processes also remain unchanged at first. If payroll has been handled in a certain way, it continues in the same manner. This creates a sense of security and reduces stress.
From a Small Team to a Larger Community
Alongside continuity, the business transfer also brings new opportunities. When you become part of a specialized service provider, you’re suddenly surrounded by dozens or even hundreds of colleagues doing the same work.
Your specialized expertise deepens when you can focus on your own area of expertise. Learning opportunities multiply when you work alongside experts from different industries and collective bargaining agreements. Career paths open up—you have the opportunity to become a team leader, specialize, develop into a trainer, or transition into consulting roles.
Experiences from those who have made the transition
Initial nervousness is natural, but the experiences have been positive without exception. Many feel their work is more valued in a specialized organization—they are part of the company’s core operations, not a “support function.”
Others appreciate the reduced hectic pace. With a broad network in the background, no one is solely responsible. A third theme that often comes up is professional development—the experts around you keep you up to date, and in a company specializing in payroll, there’s a different focus on developing skills.
Continuity and New Opportunities Together
A business transfer shouldn’t be viewed merely as a transition. It can also be a new beginning—an opportunity to develop, learn, and grow in your career in ways that wouldn’t have been possible in a small in-house team.
At the same time, it offers continuity and security. Rights are preserved, work continues, and colleagues remain the same. This combination makes a business transfer an attractive option from the perspective of the transferring staff as well.
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Jussi Jaakkola serves as Commercial Director at Silta Oy and has been involved in supporting transferring employees in numerous business transfer projects.
If you’re considering outsourcing payroll management, you can find more information on our services page.
