The Act on posting of workers and Posting of worker ban regulate the posting of workers to Sweden, with the aim of strengthening the rights of posted workers and the possibility for companies to offer their services across borders. The regulations also aim to counter social dumping, prevent companies from exploiting differences in working and wage conditions to gain competitive advantages.
1. Preliminary obligations for employers who post workers to Sweden
Foreign employers who post workers to Sweden must report the assignment to the Work Environment Agency through dedicated online service.
Companies must submit the notification no later than the day of commencement of work activities in Sweden.
1.1. Notification of the posting of workers to Sweden and possible changes
The application for secondment to Sweden must contain relevant information about the assignment, including:
- Information about the sending company;
- Receiving unit;
- Posted workers;
- Designated contact person.
In addition, the sending company must notify any changes that occur during the posting that alter the posting report.
1.2. Appointed representative in Sweden
The appointed representative must be in Sweden throughout the posting period. The contact person is also authorized to receive documents on behalf of the company.
The contact person must also present documents on request that show that the requirements of the Posting Act are being followed.
2. Mandatory obligations for the Swedish service recipient
The employer is responsible for notifying the posting to the Swedish Work Environment Agency. The posting company must also apply the most favorable working and wage conditions.
On the other hand, the receiving unit must collect a copy of the documentation that proves the correct accounting of the posting. If the sending company fails to provide the Swedish recipient with this document, the latter must notify the Swedish Work Environment Agency by e-mail no later than 3 days after the work has begun.
The recipient of service who does not notify SWEA may have to pay a penalty fee of SEK 20,000.
In any case, the notification of the receiving company does not replace the notification of posting by the employer, who must submit the notification of posting as previously mentioned.
3. Swedish working and salary conditions
Working hours and rest periods are regulated by The Working Hours Act, which also applies to posted workers. This law establishes the conditions for daily work, breaks and overtime hours. Nevertheless, collective agreements may make exceptions to the law, although certain minimum requirements for weekly rest, 24-hour rest and total weekly working hours are mandatory.
Regarding salary conditions, Sweden has no statutory minimum wage, therefore no special salary level automatically applies to posted employees in Sweden. In fact, every sectoral collective agreement sets wage levels that should also apply to posted workers.
4. Additional requirements for long-term posting to Sweden
For the posting of employees to Sweden that lasts more than 12 months, the posted employee is entitled to additional working conditions and terms of employment that apply to employees in Sweden in a similar situation. When calculating the 12-month period, all postings involving different workers (even in the case of compensation) performing the same activity at the same workplace should be taken into account.
The deadline can be extended from 12 up to 18 months. In that case, the foreign employer must report and submit a motivated report to the Swedish Work Environment Authority no later than the date on which the 12-month period expires.
To notify the extension to 18 months, the employer can contact SWEA via e-mail. The employer must explain and justify the reasons for the extension. Eventually, after the 12/18 month period, all additional terms of employment apply to the posted workers.
5. Social insurance coordination in Sweden
Any worker who is posted from a country within the EU/EEA or Switzerland has the right to retain social fees paid in their home country. In this regard, the employer should apply for an A1 certificate to the competent social insurance institution. In fact, A1 certificates show that the worker continues to pay social security contributions in his home country.
This document should be kept available during and after the posting and presented to the labor authority upon request.
6. Penalties for Non-Compliance
Failure to notify the posting or the contact person in time can result in a penalty fee of SEK 20,000 per posted worker. The same applies to posting companies that do not provide documentation for notification to the service recipient in time. In these cases, the foreign employer will receive a sanction fee order from the Swedish Work Environment Agency.
The foreign company may object to the sanction and provide the competent authority with evidence and justification supporting the objection.
If the posting notification is incorrect or incomplete, the labor authority can also decide on an injunction, that is, an injunction to correct the deficiencies. The same applies if the foreign company does not update the reported information or if the contact person does not perform his duties in accordance with the regulations.
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