In Sweden, the EU Posted Workers Directive ("PWD") has been implemented through a domestic Swedish law. The law grants employees that are seen as Posted Workers, a set of minimum Swedish labour law rights, in relation to their work during the posting in Sweden. Employers of Posted Workers do also have reporting obligations, vis á vis the Swedish Work Environment Agency and the Swedish client. Learn more about PWD in Sweden, in this article.
What is the Posted Workers Directive?
The PWD is an EU directive, that sets rules for companies posting workers temporarily to another EU member state. The directive aims to ensure that posted workers receive fair working conditions and wages comparable to those of local workers in the host country. It covers areas like working hours, vacation, health and safety standards, and other employment rights.
In Sweden, the directive is mainly implemented through the Swedish law “utstationeringslagen”.
When is an employee seen as posted to Sweden?
Under the Swedish PWD law, there are a number of situations in which an employee is seen as posted to Sweden. A posted worker is defined as someone who usually works in another country but temporarily performs work in Sweden, taking into account the circumstances of the work and the worker's situation. In more detail, a posting is considered at hand under the following cross-border measures:
Contract-Based Posting: When an employer sends workers to Sweden to perform services under a contract that the employer has with a service recipient (client) operating in Sweden
Intra-Group Posting: When an employer sends workers to Sweden to work at a company or site that is part of the same corporate group.
Temporary Agency Posting: When an employer leases or provides workers to a user company established or operating in Sweden.
During the posting period, there must be an employment relationship between the employer and the employee. Additionally, a worker is considered posted if:
The employer leases the worker to a user company,
The user company sends the worker to Sweden,
The user's action would constitute a posting if the user were the worker's direct employer, and
Neither the employer nor the user company is established in Sweden.
What parts of Swedish labour law applies to Posted Workers in Sweden?
The answer to this question is largely dependent on the length of the posting, as the Swedish PWD law differentiates between normal posting, and long term posting. In relation to normal posting, a set of labour law rights are granted to the posted employee, whereas all statutory Swedish labour law rights would apply in a long term posting.
It is important to note that Sweden has a special system in terms of labour law, as many of the rights that are granted to Swedish workers are derived under Collective Bargaining Agreements (CBAs), enter into between Workers Unions and Employer Organizations. Under the Swedish PWD law, such Workers Unions are, in certain situations, allowed to utilize strikes, blockades, boycotts, and other “collective actions”, as a tool to force an employer to enter negotiations regarding the conclusion of a CBA.
How does the Swedish PWD law affect foreign employers?
Apart from being required to grant its employees the rights and benefits under the Swedish PWD law, an employer with employees that are posted to Sweden is also required to fulfill notification/reporting obligations with the Swedish Work Environment Agency. Non compliance can lead to penalties.
Are you a non-Swedish company that is planning a project in Sweden? We can advise you on all your Swedish legal obligations, from a tax, social security, labour law, and any other perspective. Reach out to us if you are interested.
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