Recently, the union has received many questions related to the definition of the actual place of work in fixed-term employment relationships in orchestras. What is traveling to the actual place of work, and what can be considered a work trip required by the employer? When a musician enters into an employment contract with, for example, a city orchestra or a theater, the actual place of work is considered to be the orchestra’s home hall or, in the case of a theater, the stage where the production is presented according to the employment contract. The interpretation is the same for permanent and temporary employees.
Visiting performances or tours, where employees travel to work somewhere other than the actual place of work, can be considered as work travel required by the employer. In these cases, KVTES (general employment and collective agreement in the municipal sector) obliges the employer to provide transportation or, alternatively, compensate the employee’s travel expenses. In addition, per diems are paid during the work trip. Travel costs and per diem for work trips required by the employer are paid tax-free.
Reimbursements related to travel to the actual place of work can be agreed on a case-by-case basis in the employment contract. However, it is worth remembering that the compensation to be paid is then not tax-free but taxable income.
Employers have different practices, and that is why it is very important to remember to negotiate compensation already when signing the employment contract, if the work requires traveling to another location. If for some reason the expenses are not reimbursed, or they are only paid partially, it is possible to deduct them as income-generating expenses in your own taxation, as long as they exceed the deductible limit defined by the tax authority. Instructions in this regard can be found on the union’s Member Page. At the end of the year, it is a good idea for a freelancer to go through their calendar or travels, and check the travel expenses incurred from work during the year.
The writer is the Finnish Musicians’ Union’s Shop Steward for Freelancers.