EU Posted Workers Directive Implemented

The situation

Sweden has amended its posted worker rules to implement the EU Posted Workers Directive, effective July 30.

A closer look

Key changes under the new rules include:

• Five-day exemption abolished. Employers must notify the Swedish Work Environment Agency (SWEA) of all postings; previously, employers were only required to notify SWEA if the employee worked for at least five calendar days.
• Notify clients. Employers must send a copy of the posting notification to the client site (if applicable). Clients must notify the SWEA if they do not receive the notification within three business days of the start of the posting. Both the employer and client can be fined if this formality is not completed.
• Notify workers of consecutive postings. Employers must notify workers on consecutive postings of the total posting duration, to allow posted workers to benefit from full host employment conditions applying after 12 months. A new report is not required if the employee is leaving and coming back to the same project.
• Salary requirements not directly affected. The SWEA recommends that applicants contact relevant trade unions to establish the minimum wage applicable to a particular sector, similarly as being handled for work and residence permit applications.
• Sanctions for noncompliance. The fee for noncompliance with posting requirements is still SEK 20,000 (USD 2,284.15).
• Business visitors. Employers should continue to determine whether or not a posted worker notification is required for business visitors, since this depends on the circumstances of each case. Fragomen recommends that employers err on the side of reporting for ambiguous cases.

Impact

• Employers are now subject to stricter notification and communication requirements. The new rules, however, only apply to new postings. 
• The SWEA plans to adjust its notification service around October 2020 to improve transparency under the new policy.
• Posted workers should benefit from applicability of more host employment conditions.

Background

• Posted worker definition. A posted worker is one that carries out business or work activities temporarily in an EU Member State other than the one they usually work. This can include those traveling to another EU Member State to work with the sending employer’s customers or clients, at a subsidiary or branch, or those hired by an employment or placement agency to carry out work for a client in another EU Member State.
• EU Posted Worker Directive history. The main objective of the EU Posted Workers Directive is to improve employment conditions between posted and host country workers by equalizing pay, regulating working hours and paid leave rules. On July 30, 2018, legislation went into effect that introduced a set of requirements to companies posting their employees to another EU Member State to provide services. EU Member States—and with them, all companies— had until July 30, 2020 to adopt the new provisions. Due to COVID-19-related delays, only a few EU countries have adopted the revised directive, including Belgium, the Netherlands and Poland.
• How Fragomen can help. Contact your immigration professional for assistance with applying the terms of the new rules in Sweden.

Looking ahead

Trade unions are expected to address the new rules in upcoming collective bargaining. The updated notification system to be adopted around October will also provide clearer guidance on the data required to be entered. Further developments are expected once the new online system is live.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].