Probationary period is problematic for Work Permit Holders

When Swedish companies hire new employees, it’s fairly standard to have a 3-6 month probationary period. While this is common and a non-issue for Swedish residents, companies that source talents from all corners of the world, like our clients, face significant challenges.

Challenges with Swedish Government Agencies

Swedish government agencies often work in silos. One agency sets up rules and conditions that are extremely difficult to meet due to requirements from another agency. The two government agencies causing the most issues for international talents moving to Sweden are the Tax Authority and the Migration Agency.

The Impact of Probationary Periods on International Talent

For HR professionals and recruiters, understanding the impact of probationary periods on international employees is crucial. Here’s how it plays out:

Permit Duration and Local Registration

Companies that implement a standard probationary period are generally hoping to receive the usual 2-year permit, but instead receive a work and residence permit only for the duration of the probationary period. This usually results in a six-month permit, which does not qualify the employee for full local registration. Instead, they receive a tax ID number that does not allow them access to benefits such as medical services, daycare, and full bank accounts. This makes relocation to Sweden cumbersome, and necessitates a lot of workarounds, lacking a perfect solution.

Insurance and Registration Issues

The Swedish Migration Agency requires companies to provide four mandatory insurance policies for foreign talent from the first day of employment. However, insurance companies can’t activate these policies without the basic coverage given to fully registered Swedish residents. Delays in obtaining a Swedish Personal Number, which is only issued upon full local registration, create several problems:

1. International Medical Insurance: Employers must find international medical insurance to comply with the Migration Agency’s rules for permit renewal. If the insurance hasn’t been in place from the first day, it can cause a denial of an extended work permit, even if taxes have been paid from the start.
2. Bank Accounts: Opening a bank account is difficult, causing headaches for the salary department.
3. Phone Plans: It’s not possible to buy a pay-as-you-go card for a phone. HR, colleagues, or friends must sign up for the card with their Bank E-ID.
4. Daycare Access: It’s not possible to queue for daycare in most municipalities without a personal number, making it difficult for families with spouses to find employment if they have small children.
5. Other Services: Gyms, customer club cards, subscriptions, and many other services are only accessible to people with a Swedish personal number.

The Negative Impact on New Talent

The probationary period creates a poor welcome for new talent moving to Sweden. Administrative tasks are hindered for many months, leading to frustration. Work permit holders often complain, especially since the rules were different just a few months ago, creating an inconsistency in experiences.

Spouses accompanying work permit holders on probation face additional challenges. Without a personal number or a set duration of legal stay, it’s harder to secure solid job offers from Swedish employers.

Solutions for HR and Recruiters

Companies handle this issue in various ways. Some remove the probationary period for foreign talent altogether, while others maintain it and reapply for a new permit within six months. This is tough for the individual but fair, considering all local hires also have a probationary period. Other companies choose different permits, for instance the EU Blue Card or an Inter-Company Transfer, which have stricter requirements than a regular work permit but do not request a copy of the employment contract.

At Nimmersion, we guide our clients through these challenges. We help weigh the options and present solutions so decisions can be made with full understanding of how the system works. We ensure our clients fulfill all the requirements so that they can bring in and retain talents from abroad.