Sweden | New Rules on Labour Migration Introduced

Sweden has recently announced new changes to its current work permit legislation, which went into effect on June 1, 2022. According to the statement, the changes ‘tighten and improve rules for labor immigration, to combat the exploitation of labor migrants’ and to attract international talent.

Summary of Changes

Work Permit Updates

  • Employment contracts must be included in all work permit applications moving forward
    • Contracts will become mandatory. This means employment contracts must be added to the work permit applications.
      • There is no set format for the contract.
  • Maintenance requirements for work permit holders with accompanying family members will be introduced for first-time applicants and for applicants seeking extensions.
    • This means the Migration Agency will deduct the monthly costs for living from the salary to see that a minimum level is met.
      • An income threshold will need to be met to show that the main applicant can support the family members. This threshold will be set yearly by the Enforcement Authority.
      • A flat-rate calculation on housing costs will be used when an applicant does not have accommodation in Sweden.
  • Extension of work permit for an indefinite period
    • Currently, the limit to extend a work permit is 48 months. Moving forward, work permits can be extended for an indefinite period.
      • This is an option for employees that are not eligible for permanent residency and cannot be granted further extensions due to the 48-month limit.
  • Re-entry visas for individuals with pending applications will be introduced
    • Employees with pending applications for extending a permit will be able to apply for a visa that will facilitate re-entry to Sweden after the permit has expired. Details related to this process will be confirmed by the Migration Agency.
  • A new residence permit for highly skilled workers (Talent Visa) will be introduced
    • This permit will allow highly skilled individuals to reside in Sweden for up to 9 months to seek job opportunities or set up a business. This permit will allow individuals to apply for a regular work permit from within Sweden and to start working while the application is being processed. Dependents cannot be included in the application for this type of new permit.
    • Requirements: Master’s degree; Sufficient means; Health care insurance 

 

Hiring Students

  • Students can work in Sweden.
  • Health, life, occupational injury, and pension insurance must be covered.
  • Salary must be in collective agreement and/or market standards.
  • May begin work before the student permit expires.
    • If a student begins working before registering the work and residence permits for them, this will be considered ongoing employment, and an advertisement for the role will not be required.
  • Must have passed 30 credits from university.
  • Time spent on a Student Permit will not be counted towards Permanent Residency.

 

Employer Updates – Compliance

  • Employers will need to report changes in employment conditions to the authorities for non- EU nationals no later than one month after the change  
    • Changes that trigger the need to report include lower salary, less working hours, withdrawal of insurance coverage
    • Failure to report the enumerated changes above can result in a fine for the company.
  • Minor administrative errors from the employer’s side will not automatically result in the revocation of the permit
    • Examples of “minor errors” include:
      • The employee does not begin employment within the stipulated 4 months due to unforeseen circumstances.
      • Errors made by previous employers.
    • Examples of errors that will not be deemed as “minor errors” include:
      • An error made to mislead the authorities.
      • Repeated errors by the company.
Erickson Insights

These changes, which were proposed in April and approved for June 1, do not have have a transition period. As such, pending applications, as of June 1, 2022, will be assessed according to the new rules.

Erickson Immigration Group will continue to share updates as more news is available. If you have questions about anything we’re reporting above or case-specific questions, please contact your employer or EIG attorney.