New rules to ensure better working conditions for posted workers

On 30 July 2020, amendments to the Swedish rules on posting of workers came into force. The Swedish legislative amendments implement changes to the Posted Workers Directive.

The new changes include:

• That the term “minimum wage” is changed to “wage”. As a result, Swedish trade unions may take industrial action to require that companies pay the wages according to collective agreements which corresponds better to those of local workers. In addition, compensation for costs for travel, food, lodging and conditions regarding accommodation is added to the “hard core” of employment terms that posted workers shall be entitled to
  
  
• That for long-term posting (when the period exceeds 12 months), companies must apply in principle all the working conditions and terms of employment that apply to local workers beyond the “hard core”. This 12-month period can be extended to 18 months in total, if the company reports the extension to the Swedish Work Environment Authority
  
  
• That if the company replaces one posted worker with another, to perform the same service in the same location, the posting period will be the combined time between the two workers. The company needs to inform the workers of the combined total time of posting. This must be done so that the new posted worker can benefit from the extended conditions that apply to long-term postings
  
  
• That the company’s obligations to report posting to the Swedish Work Environment Authority and to appoint a contact person in Sweden are extended to include all posted workers, regardless of the length of the posting. These obligations must be fulfilled no later than the day the posting begins. Furthermore, the company must provide documentation of this reporting to the recipient of services
  
  
• If the company does not provide the abovementioned documentation to the recipient of services, the recipient of services must notify the Swedish Work Environment Authority. Such notification must be provided no later than three days after the work has been commenced

As a result of the changes, trade unions are expected to establish special collective agreements with terms and conditions for long-term postings. The trade unions may take industrial action to ensure that companies enter into such agreements.

IUNO’s opinion

The new rules impact the salary and other terms of employment that posted workers in Sweden shall be entitled to. The changes also set higher requirements on companies regarding the administration of reports and documentation to the Swedish Work Environment Authority. Companies which do not meet the requirements risks liability for damages and/or penalty fees.

IUNO therefore recommends that companies, in order to avoid potential sanctions, ensure that they fully understand how the new rules affect existing and future postings of workers. Companies should be aware of the documentation that is required, and the individual deadlines of reporting for their posted workers.

[Posting of Workers Act (1999:678)]