3 October 2022

Employers may be required to report changes in terms of employment

At the beginning of October, the Swedish Migration Agency will start deciding that selected employers must report changes in terms of employment. This reporting obligation is part of the rule changes aimed at counteracting labour exploitation adopted by the Parliament earlier this year.

The new rules mean that employers in certain industries may be obliged to report to the Swedish Migration Agency if the terms of employment of their employees who have a work permit worsen, compared to the those set out in the employment contract that constituted the basis for the work permit.

The Swedish Migration Agency decides on the reporting obligation in connection with its decisions on work permits. The decision is sent to the employer and contains information about how to submit a report.

Work permits may be revoked

If the terms of employment have worsened and this means that the job no longer meets the requirements for a work permit, the Swedish Migration Agency may decide to revoke the work permit.

The employee may continue to work while the Swedish Migration Agency investigates whether the work permit should be revoked. An employee who chooses to change employer during this period has four months to apply for a new work permit for her/his position with the new employer.

The employer may be fined

The Swedish Migration Agency may discover unannounced worsened terms of employment in connection with a follow-up inspection or in connection with an employee’s application for an extended work permit.

“Follow-up inspections” mean that the Swedish Migration Agency carries out random checks of the terms of employment while the employee has a work permit. The Swedish Migration Agency may impose a penalty payment on an employer who, despite a request, does not provide accurate information about current conditions in connection with a follow-up inspection.

The Swedish Migration Agency always checks the terms of employment in connection with an application for an extended work permit. In order to obtain an extended work permit, it is required that the conditions for a work permit have been met throughout the previous permit period.

An employer that has received a decision imposing the reporting obligation, but despite this does not report any worsened terms of employment, may be sentenced to a fine or imprisonment.