New Law Targets Wage Rights for Foreign Workers in Sweden

A new law on the right to wages for foreign workers, penalty fees against cheating employers and opportunities for time-limited residence permits. A long series of proposals are now being submitted to the government to strengthen efforts against work-related crime.

» Published: March 03 2025

New Law Targets Wage Rights for Foreign Workers in Sweden
Photo: Lars Schröder/TT

The delegation against work-related crime has been working since 2021 and the final report was submitted to the government on Monday.

A characteristic is that employees are exploited and that serious entrepreneurs are competed out, says the delegation's chairman Ola Pettersson about the crime.

The final report contains a "package" of proposals for how society's efforts can be strengthened, he says.

The proposals focus particularly on foreign workers, both with and without work permits.

New Law

Among other things, a new law on the right to wages for employees with work permits is proposed. It is intended to be applicable in disputes over wages between employees and employers.

The purpose is to counteract the phenomenon of shadow contracts, says Ola Pettersson.

Furthermore, a penalty fee is proposed, which can be imposed on employers if a work permit is revoked by the Migration Agency. According to Pettersson, this will make it more risky for employers to cheat with the work permit system.

The consequences have previously mainly affected employees, by losing the right to stay in the country.

Assistance with Proceedings

They also want to see strengthened opportunities for undocumented persons to bring their case to court in wage disputes, and propose that they can be represented by the Discrimination Ombudsman.

The last part of the package deals with foreign nationals who get into a dispute being able to receive temporary residence permits during the period the process is ongoing.

This is necessary for the other proposals to have an impact in practice, says Ola Pettersson.

The proposals will be processed, and Minister for Equality and Labour Market Paulina Brandberg (L) does not want to comment in advance on whether they can become a reality.

But I think the delegation presents interesting proposals, she says at a press conference.

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By TT - Translated and adapted by Sweden Herald under license from TT

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