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Contractor or employee in Sweden, what decides?

The circumstances decide, not the heading of the contract. The more the person is integrated into the business, works set hours, uses the client's tools and carries no financial risk, the more it points to employment.

What the rules say

  • Swedish labour law: the concept of employee follows from an overall assessment of the contract and the actual circumstances.
  • The Tax Procedures Act: no tax is withheld where the recipient is approved for F-tax.
  • The Social Security Contributions Act: contributions are levied on remuneration for work in an employment.

The requirements line by line

The requirements line by line
QuestionRequirementSource
The assessmentWhether someone is an employee follows from an overall assessment of the circumstances, not the label on the contract. Direction, control, hours, tools and financial risk are weighed together.SFS 1982:80, lagen om anställningsskydd
TaxThe payer makes no tax deduction for a recipient approved for F-tax, but the approval alone does not decide whether an employment relationship exists.SFS 2011:1244, skatteförfarandelagen
Employer dutyIf the contractor is assessed as an employee, the payer answers for withholding and contributions for the whole period.SFS 2000:980, socialavgiftslagen
SupervisionThe Tax Agency publishes its reading of the line between business income and employment in its legal guidance.Skatteverkets rättsliga vägledning

What it means for the company

Misclassification is expensive afterwards: withholding, contributions and surcharges for the whole period, and in labour law an employment with protection from the start.

What it means for the individual

As a contractor you carry your own risk, your own contributions and your own holiday, and the price should show it.

Source lines

Next step

Review each engagement against the criteria separately: who directs the work, who owns the tools and who carries the risk.

All questions for small businesses

This page reports what the sources say, with the identifier and address of the publisher. It is not legal advice and does not decide an individual matter.

Next step

Three ways to put the register to work in your own practice.

Start with your task