The Posting of Workers Act (1999:678) and Posting of Workers Ordinance (2017:319) regulate the posting of workers to Sweden, with the aim to strengthen the rights of posted workers and the possibility for companies to offer their services across borders.
The regulations also aim at combatting social dumping, preventing companies from exploiting differences in working and salary conditions to gain competitive advantages.
Sweden’s rules on posting are based on rules that are common for the EU and the EEA. For more information on EU Directives on the matter, take a look at our guide on EU Posted Workers Directives.
Preliminary obligations for employers posting workers to Sweden
Foreign employers posting workers to Sweden must report the assignment to the Swedish Work Environment Authority through the dedicated online service.
Companies must submit the report at the latest on the day of commencement of the work activity in Sweden.
Notification of posting workers to Sweden and any relevant change
The notification of posting to Sweden must include the relevant data about the assignment, including:
- Information about the sending company;
- Receiving entity;
- Posted workers;
- Appointed contact person;
- Type of services, workplace and planned posting period.
In addition, the sending company must communicate any changes occurring during the posting amending the posting report.
Appointed contact person in Sweden
The appointed contact person must be in Sweden during the whole period of the posting. Also, the contact person has the authorisation to receive documents on behalf of the company.
The contact person must also be able to provide Swedish authorities and trade unions with documents demonstrating compliance with the requirements of the Posting of Workers Act, upon request.
Mandatory obligations for the Swedish recipient of service
The employer is responsible for reporting the posting to the Swedish Work Environment Authority. The posting company must also apply the Swedish working and salary conditions applicable to the posting, while preserving any more favourable conditions to which the workers are entitled.Â
On the other hand, the receiving entity must collect a copy of the documentation proving that the posting has been reported. If the sending company fails to provide the Swedish recipient with this document, the latter must notify the Swedish Work Environment Authority via e-mail within 3 days of the work beginning.
The recipient of service failing to notify the SWEA may have to pay a sanction fee of SEK 20 000.
However, the receiving company’s notification does not replace the employer’s obligation to submit the posting notification.
Swedish working and salary conditions
The Working Hours Act regulates working hours and rest periods and also applies to posted workers. This Act defines the conditions of daily work, breaks and overtime hours. Nevertheless, collective agreements may derogate from the Act, provided that the applicable minimum protection under the EU Working Time Directive is respected
As for salary conditions, Sweden does not have a statutory minimum wage, therefore no sstatutory minimum wage level automatically applies to posted employees in Sweden. Indeed, sectoral collective agreements set out wage levels, which apply where the employer is bound by the relevant agreement. Swedish trade unions may take industrial action, within the limits of the Posting of Workers Act, to obtain a collective agreement with the posting employer.
Additional fulfilments for long-term posting to Sweden
For posting of workers to Sweden lasting more than 12 months, the employer must provide the posted worker with additional working conditions and terms of employment that apply to employees in Sweden in an equivalent situation. When calculating the 12-month period, all postings involving different workers (also in case of replacement) performing the same activity at the same workplace should be taken into consideration.
The time limit can be extended from 12 up to 18 months. In that case, the foreign employer must report and provide a motivated notification to the Swedish Work Environment Authority no later than the date the 12-month period expires.
To report the extension to 18 months, the employer can contact SWEA by email. The employer has to explain and motivate the reasons of the extension. Once the 12/18-month period has been exceeded, all the additional conditions of employment apply to the posted workers. However, this excludes rules on the conclusion and termination of employment contracts, including non-compete clauses, and supplementary occupational pension schemes.Â
Social security coordination in Sweden
A worker posted from a country within the EU/EEA or Switzerland may remain covered by the sending country’s social security system, provided that the applicable coordination requirements are met.
In this regard, the employer should apply for an A1 Certificate to the competent social security institution. In fact, the A1 Certificate confirms which country’s social security legislation applies and where social security contributions are payable.
The worker should keep the A1 Certificate available during and after the posting and present it to the competent authorities upon request.Â
Penalties for non-compliance
Failing to report the posting or contact person on time may incur a sanction fee of SEK 20,000. The same penalty applies to posting companies that do not timely provide documentation of the report to the recipient of services. In these cases, the foreign employer may receive a sanction fee injunction from the Swedish Work Environment Authority.
The foreign company may object to the sanction and provide the competent authority with evidence and reasons supporting the objection.
Additionally, if the posting report is incorrect or incomplete, the Swedish Work Environment Authority may issue an injunction to correct the deficiencies. This also applies if the foreign company fails to update the reported information or if the contact person does not fulfill their responsibilities according to regulations.