Under the new rules added to the Staffing Agency Act, any staffing company employee who has been deployed to the same end client business unit for more than 24 months during the previous 36-month period would have the right to receive an offer of employment from the end client. The end client would themselves be responsible for ensuring that such an offer is issued within one month of the individual qualifying for it, and failure to do so can allow the individual to sue for damages. The employment offered must be without a fixed duration. If the individual accepts the offer, their old employment with the staffing company will end as soon as the employment with the end client begins, without any need for a notice period towards the individual’s old employer and with no compensation towards the staffing company.

 

End clients who do not wish to offer a staffing company employee direct employment can instead offer them statutory compensation, consisting of 2 months extra salary within the 1-month deadline mentioned above. There is, as of yet, no case law regarding the extent of the damages a qualified individual might claim if they are not offered employment or statutory compensation within the deadline, but they would have to make their claim within four months.

 

Only time worked from October 1st, 2022, and onwards will count towards the 24 months required for the consultant to gain the right of a job offer, which makes October 2024 the earliest point at which this legislation can hypothetically cause issues.

 

There is still no definite case law regarding the application of the new legislation, but the Swedish tech-industry organization TechSverige states that they believe there to be clear limits to its applicability. The Staffing Agency Act states in its scope that it will only apply to employees who have been hired out to work under a client company’s control and direction, which potentially excludes many consultant companies due to their degree of involvement in realizing deliverables and their responsibility for work results. TechSverige also makes the interpretation that a staffing agency employee who is offered direct employment under the new legislation also does not count their assignment duration towards their new employment seniority, making their new employment potentially easier to terminate. Changes in end-client business unit can also hypothetically affect the applicability since the law requires the staffing company employee to have been working in the same business unit, though the definition of a business union may be affected by Swedish case law and applicable collective agreements (if any). Instructions issued to employees regarding the applicable chain of command can also have an effect. Staffing company employees who provide specialist expertise outside the core business of the end client company might also, according to TechSverige, potentially fall outside the scope of the relevant legislation, though there is so far no case law on the subject.

 

If an employee is paid compensation in lieu of an offer of direct employment or declines the offer, it is TechSverige’s stated interpretation that no new offer needs to be given no matter how long the assignment lasts with that end client.