Sweden mandates review of posted workers notification system

At a glance

• The Swedish government has mandated the Work Environment Authority to review the posted workers notification system and to propose improvements to data quality, accessibility and inter-authority use.
• The mandate is not limited to technical adjustments; it encompasses measures within the existing legal framework and, where necessary, the identification of additional measures.
• The current system already captures mandatory elements relating to identity, duration, place of work and the nature of the activity, but data is reportedly limited and difficult to use for cross-referencing with information held by other authorities.
• A more detailed and accessible notification system may facilitate the identification of factual elements used by tax, labour and migration authorities in qualifying cross-border situations.

The Swedish government has instructed the Work Environment Authority to review and propose improvements to the posted workers notification system.

The government decision cites labour market abuses and the need for more effective control. Data currently held in the posted workers notification system is, in certain cases, of limited practical value, particularly for cross-referencing with other authorities. The mandate accordingly addresses both the content of the notification and its accessibility, comparability and use by multiple authorities. Importantly, it is not confined to a purely technical review; it contemplates substantive changes to how posted worker data is collected and shared.

Enabling different authorities to access and use the same data more effectively may facilitate the identification of factual elements relevant to qualifying cross-border situations for tax, labour and migration purposes. A reformed system could therefore lead to more cases in which subcontracting arrangements are reclassified as hiring-out, tax obligations are triggered from day one, and migration assessments are applied more systematically.

Businesses with existing or planned cross-border arrangements involving Sweden would be well advised to monitor the outcome of this review as it develops.