Labor exploitation in Finnish restaurants (immigrants owned) via Business ID (toiminimi) system?

I want to raise a serious concern and ask for clarification from people who understand Finnish labor law better than I do.

I’ve noticed that many small restaurants in Finland, often owned by immigrants, seem to operate using loopholes in the entrepreneur system. In several cases, employees are not paid a normal salary at all. Instead, workers are asked to register under their own toiminimi (Business ID) and are paid that way.

From what I’ve personally seen and heard:

• Staff work 10–12 hours a day

• They receive a fixed monthly amount or an equivalent of €4–5 per hour

• No hourly wage, no overtime pay

• No holiday pay, sick pay, or normal employee protections

• The work looks like normal employment, not independent contracting

To me, this feels like misclassification and exploitation, especially since many workers may not know their rights or are afraid to complain. It also seems unfair to businesses that follow Finnish labor laws properly.

My questions:

• Is this actually legal in Finland?

• Doesn’t Finnish law require a real employment contract if the worker follows set hours, instructions, and works under the employer’s control?

• Which authority (AVI, Vero, TE Office?) should workers contact in such situations?

• Has anyone here seen similar cases or know how they were handled?

I’m not trying to target any group — this is about labor rights, fair competition, and legality. I genuinely want to understand where the line is between legal entrepreneurship and illegal employment practices in Finland.

Thanks in advance for any insight.