Increased employment rights and compliance requirements for posted workers into Sweden
Sweden: Increased employment rights for posted workers
As of July 30, 2020, the employment rights for posted workers to Sweden will be more comprehensive.
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As of July 30, 2020, the employment rights for posted workers to Sweden will be more comprehensive. Additionally, the compliance requirement will be heavier for both the foreign employer as well as for the recipients of the services in Sweden.
The main changes are:
- Required remuneration will no longer be limited to minimum wage pay, but a posted worker should be entitled to the same salary level as a Swedish worker.
- Posting related compensation for travel, accommodation and meal should not be counted when assessing the required salary.
- The right for Trade Unions to take industrial actions increases, and the so-called hard-core terms of employment is expanded.
- Protection for workers posted for longer periods (more than 12 months) has been strengthened meaning that almost all domestic working conditions will apply to them.
- Foreign employers must report every posting to the Swedish Work Environment Authority and appoint a contact person in Sweden no later than the date the posting begins. The 5-day limit is removed.
- The foreign employers must provide documentation to the recipient of service in Sweden that the posting has been reported.
- Recipients of services in Sweden must notify the Swedish Work Environment Authority if they do not receive documentation from the employer that the posting was reported.
If the employer or the recipient of the services do not comply with these requirements, a penalty fine of SEK 20,000 can be imposed.
The new rules will affect the information that needs to be provided to the Swedish Work Environment Authority when registering a posted worker. A new updated online-form will be launched this autumn.
You are welcome to contact us if you wish to discuss the effect of the new regulations on your organization.
KPMG will host webinars after the summer, where we will discuss the new rules in detail.
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