Cross-Border Catch-Up: Tips for Implementing Probationary Periods in APAC

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Patty Shapiro: Hi, and welcome to the Cross-Border Catch-Up, the podcast for global employers who want to stay in the know about cutting-edge employment issues worldwide. My name is Patty Shapiro, and I’m here with my colleague, Kate Thompson. We are cross-border attorneys here at Ogletree, and today we’re going to discuss several updates to employment laws in Norway, Denmark, and Sweden. Kate, where should we begin our tour through the Nordics?

Kate Thompson: Thanks, Patty. We have a ton to cover today. What’s the saying, new year, new legislation? That’s definitely not it, but anyway, let’s start with Norway. The first thing I want to flag is the Working Environment Act. So there were several amendments to this act that we saw come out in 2024, and they’re mainly related to increasing employee rights in the workplace.

Patty Shapiro: What do those amendments look like?

Kate Thompson: Great question. So the amendments to the legislation, they went into effect over the summer on July 1st, 2024, and they’re actually implementing the EU directive on a transparent and predictable working conditions. So basically what this means is that employment contracts are going to be required to include certain types of information.

So what we saw in the amendments are things like procedures for terminating employment. That must be included in the employment contracts, as well as the right to holiday pay, information about paid absences, so that would be other than sick leave or parental leave, working overtime, information about the company’s social security program, and information about trainings or skill development that’s offered by the company to the employee.

Now, I want to note that these are just a few examples of the amendments that came out, and we can really do an entire episode on these amendments, but employers in Norway should review the amendments just to ensure that they’re complying with the law.

Patty Shapiro: Wow, that is a lot of amendments.

Kate Thompson: Yeah, it really is. So another thing that I want to flag, so if the employment relationship is going to be longer than a month, then the employee must be provided with the written employment contract within seven days of when that employment relationship with the employer began. So before these amendments, the deadline was actually one month. So employers will also want to note just that update to the timing.

Patty Shapiro: Right. So the employee has to be provided with an employment contract within seven days of starting? So they don’t have to sign it before they start working?

Kate Thompson: Yeah, that’s a really interesting question and also something that obviously in the US is not typical, but according to these amendments, they have to be provided with that written employment contract within seven days of when that working relationship really begins rather than prior to starting the job. So definitely an interesting caveat there, that is unlike the United States, but that is what the amendment provides.

Patty Shapiro: Yeah, interesting. Okay, what else, what other impacts are you seeing with the new legislation for 2025?

Kate Thompson: Yeah, sure thing. So let’s jump to Denmark next. I want to flag the Posting of Workers Act and the Immigration Act. So the Posting of Workers Act governs the rules for foreign companies that send employees who are going to work temporarily in that country, and the Immigration Act is going to regulate who can enter and reside in that country, so Denmark in this specific situation. This is also going to include requirements for work permits, specifically, again, in Denmark. So at the end of November of 2024, the Danish Parliament actually amended these laws.

Patty Shapiro: Okay. What do the amendments say?

Kate Thompson: So the amendments are related to foreign companies who post third country nationals to Denmark in connection with the delivery of a service. So these are also known as foreign service providers.

Patty Shapiro: Would this be like a secondee, like a US employee being assigned to Denmark?

Kate Thompson: Yeah, so that’s a great question. So basically it would be an individual or a company that’s based out of a particular country that’s going to provide the service within that country. So it could be things like consulting or if that particular individual’s technical expertise or temporary labor. So Patty, did you say secondment?

Patty Shapiro: Yes.

Kate Thompson: Yeah, so that definitely would be very similar, the concept there. So under these amendments, the employer is going to be required to do a few things. So first, they’re going to have to upload that service agreement between the employer and the individual, and they’ll need to upload the resident and the work permits. They’ll also need to upload the employment contract again between that employer and the individual, and then any information that was provided to the employee in connection with the job posting, if there was any information provided.

So as I mentioned, these need to be uploaded, but where? So they need to be uploaded to the Danish Register of Foreign Service Providers, also known as RUT. And basically the foreign service providers are going to have to make sure that both the service provider and the employees of the company, they need to present valid identification to the Danish Working Environment Authority whenever the inspections take place.

Patty Shapiro: Okay. And when do those changes go into effect?

Kate Thompson: Great question. So the new requirements for presenting IDs to the Working Environment Authority, so that’s going to come into on January 1st, 2025. So already in effect. And I also want to note that that enhanced information requirements, so when I spoke about uploading things to RUT, so that’s not going to take effect until January 1st of 2026. So employers will have some time, and it’s really important for them to note that deadline coming up in less than a year now.

Patty Shapiro: Yeah, don’t say that, don’t wish the year away. I think we have time for one more update. Do you have anything else to share?

Kate Thompson: Yes. So for our final stop, let’s go to Sweden. So the Swedish Parliament decided to implement the new EU Blue Card Directive, and that also went into effect on January 1st. So there was a lot going on at the beginning of the year. This legislation, it’s important to note that it actually replaces the 2009 Blue Card Directive.

So of course, as we all know, all companies, they want to attract the best candidates for the job. So what the Swedish Parliament has done is issued this new EU Blue Card Directive to do exactly that. So basically, the directive is both a residence and a work permit, and it’s going to be granted to foreigners with employment contracts for highly qualified work in Sweden.

Now, this option, it’s important to note, it’s available in other European countries for even several years prior to this, but of course, all companies want to attract the most highly qualified candidates to the job. So the Swedish Parliament decided to join in.

A couple of things that will also want to flag about this new EU Blue Card Directive. So the duration of the employment contract has to be at least six months. It’s also possible, without having to apply for a new visa, that the individual can change jobs, change employers. So that’s also a great new update. There’s also way more flexibility now for EU Blue Card holders from other EU countries to conduct business activities in Sweden, and then also to apply for the Blue Card in Sweden.

And then also there’s a new extension of time to find new employment if the Blue Card holder basically becomes temporarily unemployed. So with all of this flexibility provided, now we’ll see an increase in the number of EU Blue Card applications. And I’m sure employers in Sweden are so excited to continue to attract that top tier talent into their workplace.

Patty Shapiro: Absolutely. Who wouldn’t be? Thank you so much for walking us through these updates. I think that’s about all the time we have today. But thank you all for joining us for today’s Cross-Border Catch-Up, and follow us to stay in the know about cutting-edge employment issues worldwide.

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