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Sweden
Regulations for Working in Sweden
Overview
Companies and self-employed people from the EU must register a posting to Sweden or a business trip to Sweden with the authorities and comply with legal requirements. This includes registration, reporting to the Swedish Work Environment Authority, and tax and social security requirements.
Here you can find all important information about working in Sweden, the required documents and legal regulations. With premote, you can process your reports quickly, digitally and in compliance with the law!
EU Posted Workers Directive
What are the requirements?
Foreign employers must inform the Swedish authorities of the posting.
The requirements are as follows:
- A contact person in Sweden should be appointed at the latest when the posting starts
- The report must be made on the website of the Swedish Working Environment Authority
- The foreign employer must forward the completed declaration to the body that receives the posted workers no later than the day on which the posted worker starts working in Sweden
Documents required
Foreign employers must provide certain documents during the posting and up to 4 months after the posting has ended. These documents include:
- employment contract
- Pay details
- Working time sheet
- Evidence of payment of remuneration to the posted worker
The documents must be translated into Swedish or English if the foreign employer so wishes.
Collective agreements
If a collective agreement regulates the employment conditions for posted workers, the foreign employer must provide the workers' organization with certain documents upon request. These documents must be presented within 3 weeks of receipt of the request.
Special rules for drivers
From August 21, 2023, new legislation will apply to the posting of drivers in international traffic. This includes special reporting requirements and possible fines for non-compliance.
Failure to comply with the posting notification requirement may result in a fine of 20,000 SEK (approx. 1,700 EUR) be punished per posted worker.
- Other forms of non-compliance will be punished by the Swedish authorities depending on the assessment of the circumstances
- Violation of collective agreements may result in an obligation to pay compensation
Labor Law
Minimum wage
- There is no statutory minimum wage in Sweden
- remuneration is determined by collective agreements between employer organizations and trade unions
Agreements vary by sector and are not generally valid
Working Time
The standard working time in Sweden is 8 hours a day or 40 hours a week.
Overtime and on-call service may be allowed under certain conditions
- Overtime and on-call service may be allowed under certain conditions
- Deviations from these provisions are possible in collective agreements
Failure to comply with the employment laws applicable in the country may also result in financial obligations, fines or demands under local termination and working time laws.
Social Security
When a worker is posted to Sweden from an EU country, EU Regulation 883/2004 on the coordination of social security systems applies:
- A1 certificate available: employee continues to be insured by the home country
- without A1 certificate: The Swedish social security legislation, and the foreign employer must act like a Swedish employer
The consequences of a violation may include extensive administrative obligations, back contributions (interest), increased audit costs and severe sanctions. In addition, significant reputation damage can occur in this context.
Income Tax
- If the foreign employer has a permanent establishment in Sweden and/or the posted employee is a tax resident in Sweden, the foreign employer is required to withhold tax on the employee's income
- Persons who are not residents of Sweden for tax purposes may be triggered if they stay in Sweden for more than 183 days or if there is a beneficial employer in Sweden
- Foreign employers who do not have a permanent establishment in Sweden but whose employees are taxable in Sweden must register in Sweden in order to comply with their tax withholding and reporting obligations
The consequences of a violation may vary depending on the situation, but there is often an immediate obligation to file a tax return in the destination country, which can have further, extensive consequences for employees and the company.
Immigration & Visas
International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.
The consequences of a violation may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.
Permanent Establishment
Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.
The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, there are usually also income tax obligations.
Compliance Check for Trips to Sweden
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