Employer of Record
Table of Contents
EOR Solution in Sweden
GTS Nordic offers an Employer of Record (EOR) solution in Sweden that allows businesses to expand without establishing a legal entity and enables independent contractors to work compliantly. As the legal employer, GTS Nordic handles relocation, onboarding of remote workers, contractors’ payroll, benefits, taxes, and more. With its vast international and Nordic network, the company assists businesses in simplifying their global expansion process. This page covers everything you need to know before working in Sweden and how GTS Nordic can help you throughout the process.
Working in Sweden
Sweden’s employment laws prioritize employees’ rights and welfare, offering various social protections and benefits. The country is known for its welfare system, flexible work arrangements, and high work-life balance standards. Moreover, Sweden is home to many multinational corporations and startups that attract international talent. GTS Nordic’s EOR solution in Sweden can help businesses navigate the legal framework and provide support throughout the hiring process.
Contractors vs. Full-Time Employees
Sweden’s labor laws provide protection and benefits to all employees, regardless of their contract type. Benefits include paid vacation and notice period of minimum 1 month. Contractors with a Swedish personal number are entitled to the welfare benefits available under the Swedish welfare system. Contractors can choose to work through a service company or establish their own limited liability company (LLC) to operate as self-employed. GTS Nordic can help businesses understand the best employment solution for their needs and provide assistance in payroll, tax compliance, and more.
Negotiating Terms of Employment
In Sweden, employees and employers have equal bargaining power when negotiating employment terms, and companies are required to provide written employment contracts outlining the terms of employment. Collective bargaining agreements negotiated between employer and employee organizations set minimum standards for compensation and other employment conditions. GTS Nordic’s EOR solution in Sweden can help ensure that the employment contract is compliant with local labor laws and regulations.
Recruitment in Sweden
The recruitment process in Sweden is similar to other countries, with many job portals and social media platforms available to post job openings. The country also has a well-developed staffing industry, which can assist businesses in finding temporary workers and contractors. The recruitment process typically involves several stages, including pre-screening, written tests, interviews, and reference checks. GTS Nordic is happy to assist agency and contractors with cost projections and tax information that might be relevant during recruitment process.
Work Permits in Sweden
Non-EU citizens must apply for a work permit to work in Sweden. EU citizens have the right to work in Sweden without a permit. GTS Nordic can help businesses navigate the work permit application process, and we are fast-track certified for work permits. This means that we can obtain work permit within a couple of months, whereas non fast-track certified employers will take significantly longer to approve work permits. Contact GTS Nordic today to get guidance and assistance with work permit approval for your employees.
Employer of Record (EOR) Partner in Sweden
GTS Nordic’s EOR solution in Sweden can help businesses overcome the challenges of expanding to a foreign market, ensuring compliance with local labor laws, and streamlining the hiring process. As an EOR partner, GTS Nordic takes care of all employer-related obligations, including payroll processing, tax filing, social security contributions, and benefits administration.
Probation & Termination in Sweden
Probationary periods in Sweden are typically six months and are stated in the employment contract. During this period, employers can terminate employment without specific reason, but they must follow due process requirements. After the probation period ends, the employer must provide a valid reason for termination, and the employee has the right to challenge it. GTS Nordic can assist businesses in understanding and complying with local probation and termination laws.
What is the Swedish Trygghetsförsäkrin (TFA)?
Trygghetsförsäkring vid arbetsskada (TFA) is a type of insurance that offers cash compensation to workers who become ill or are wounded due to their employment. Most companies in Sweden have this insurance, which is designed to protect workers from harm or disease at work.
All employees, including foreign contractors employed in Sweden by GTS Nordic, are covered by the TFA insurance. This means that foreign contractors who work for Swedish businesses are also protected by the insurance in the event of accidents or sickness at work.
For businesses looking to hire non-EU employees in Sweden, it is important to note that the TFA insurance is mandatory and failure to provide coverage can result in legal consequences. As such, it is essential for businesses to obtain the necessary insurance coverage before hiring employees in Sweden.
In summary, the TFA insurance is a very common insurance coverage in Sweden that provides financial compensation to employees in case of work-related injuries or illnesses. Businesses looking to hire non-EU citizens in Sweden must ensure they have the necessary insurance coverage.
Is TGL (Tjänstegruppliv) customary for working in Sweden?
In Sweden, it is customary to have a group life insurance coverage called TGL, or Tjänstegruppliv. The majority of firms in the nation provide this kind of insurance as a benefit to their employees. By choosing GTS Nordic as your Employer of Record, we make sure you are covered by TGL. The TGL insurance is designed to give a worker’s family and close relationships financial security in the event of an untimely death.
The insurance provides a lump sum to the employee’s chosen beneficiaries in the event of death. The lump payment can be used by the beneficiaries to pay for things like funeral fees, unpaid debts, and everyday living expenditures.
As with TFA insurance, foreign contractors working in Sweden or businesses looking to hire in Sweden may be required to provide TGL insurance to their employees. This requirement may be stipulated in collective bargaining agreements, employment contracts, or by Swedish labor law.
It’s important for foreign contractors or businesses to familiarize themselves with Swedish labor law and the requirements for employee benefits, including TGL insurance. Consult with a payroll expert like GTS Nordic to ensure that you are in compliance with all relevant regulations and requirements.
EOR Solution vs PEO
Although it can be used interchangeably and there are certain overlaps, an EOR solution and a Professional Employment Organization (PEO) are technically two different things. With a PEO, your company’s employees are on your payroll, and you are responsible for handling all HR-related issues. An EOR partner, on the other hand, acts as the legal employer of your workers, handling payroll, benefits, taxes, and other administrative tasks on your behalf. As such, an Employer of Record is generally more involved than a Professional Employment Organization. GTS Nordic’s solutions are flexible and can be tailored to fit your needs – contact us today for a free quote.
Partner with GTS Nordic in Sweden
With GTS Nordic’s EOR solution for Sweden, you can rely on our team of professionals to handle compliance– and HR-related duties, from onboarding to termination. We have extensive knowledge of Swedish labor and employment legislation and can ensure that your business is always in compliance with local laws and regulations.
If you’re looking for a dependable partner that can take care of your HR needs, get in touch with GTS Nordic today.
Contact GTS Nordic Sweden directly
Stationsgatan 7-9, 541 30 Skövde, Sweden
+45 70 626 8180