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Job offer from Company based in Germany

Any problem to anticipate

frenchviking
post 6.Apr.2013, 06:19 PM
Post #1
Joined: 19.Aug.2012

Hello,
I got an offer from a company based in Germany, the contract is in Swedish and is specifying that it is according to swedish law. It also specifies that the company will pay for the "social avgift".
Has anyone got experience with working under such contract where the employer is not based in Sweden?
Anything I should be worried about?
Thanks in advance for your feedback!
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Yorkshireman
post 6.Apr.2013, 11:09 PM
Post #2
Joined: 22.Nov.2011

QUOTE (frenchviking @ 6.Apr.2013, 06:19 PM) *
I got an offer from a company based in Germany, the contract is in Swedish and is specifying that it is according to swedish law. It also specifies that the company will pay f ... (show full quote)

Sin you don't say what the contract is for it is difficult to provide feedback, is it an employment contract, a contract to a company, a contract as a freelancer ... where will the work be done? There is no need to have a contract in Swedish, they could have just as easily create the contract in English and say that the jurisdiction covering the contract is Sweden.

Never accept at face value a contract that claims to be according to Swedish law ... Which law for what, contracts or something else? rolleyes.gif

Feel free to edit out the juicy bits, names etc... and post the text here ...then we could look at it ... alternatively, since you seem quite unsure, pass it to a lawyer to go through.
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frenchviking
post 7.Apr.2013, 08:51 AM
Post #3
Joined: 19.Aug.2012

Hello,

Thanks for your answer. Sorry I should have been more specific... It is an employment contract. (permanent employment)
The place of work is sweden, the company has an office here. But I guess they have no swedish legal entity since the contract is with their head quarter in Germany.
They are a reputable company and are doing pretty well as a business (growth and proffits).
The text says clearly that the employment relationship and the employment contract shall be governed by the laws of sweden (För Anställningsavtalet och den anställningsrelation som därigenom uppkommer gäller svensk lag).
It also says: "lagstadgade sociala avagifter på ersättningen för arbetet betalas av företaget". So I take it all taxes and social contributions paid by the employer according to swedish law are paid by the company...

What I am actually concerned about is if there are any risks that what is shown as my gross salary will not be equivalent to a gross salary from a company based in sweden...
Also I do not see any mention to collective agreements, which I understand is important for pension and insurances. I will ask them about that of course, but I am not sure how important this is and what alternatives exist, also how much they would cost...

Any feedback appreciated!

Thanks for your help,
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Yorkshireman
post 8.Apr.2013, 12:02 AM
Post #4
Joined: 22.Nov.2011

QUOTE (frenchviking @ 7.Apr.2013, 08:51 AM) *
The place of work is sweden, the company has an office here. But I guess they have no swedish legal entity since the contract is with their head quarter in Germany.

This is Europe ,) ... it is possible for Company-Employee to create employment contracts where there is a choice of legal jurisdiction that Governs the contract, so a German employer can create an employment contract for You that is covered by Swedish law. The most important part was whether it is an employment contract or something else (eg. freelance, company contract).

One thing to understand is that regardless of what is in the contract with regards which jurisdiction applies to the employment contract within Europe there is an over-riding ground principle in law that states even whilst there is a choice of jurisdiction, what jurisdiction would have been used if there was no choice biggrin.gif ... because it is realised that some employers will try to pick jurisdictions that are in their favour economically, rather than somewhere where the employee may have better employment protection. it is to protect the weaker party. So, if your work is mainly carried out in Sweden, then the employment contract by default, regardless of what it says, is governed by Swedish Employment Law, and any dispute (god forbid!) should be settled in Arbetsdomstol.

QUOTE (frenchviking @ 7.Apr.2013, 08:51 AM) *
What I am actually concerned about is if there are any risks that what is shown as my gross salary will not be equivalent to a gross salary from a company based in sweden...Al ... (show full quote)

The contract should state if there is a collective agreement, a collective agreement is just an agreement that has been negotiated between a Union and an employer. Not all companies want to bother with union negotiations, so dont have collective agreements. If the employer doesn't want to give a pension contributions then either a Union agrees or it doesn't, if it didn't then the employer wouldn't have a collective agreement ... but that doesn't mean there is no pension contributions, that is for You as a prospective employee to negotiate with the employer as a benefit. The basic accident at work insurance etc. is required by the work environment laws, so any company must provide a basic level of cover for the employees.

The only real issue with a contract from a company outside of Sweden in this respect is that if there rises a dispute it can take ages, and costly, to fight it through the court. Otherwise, if it is a good company, then it should be ok.

There are some foreign companies that claim they do not have permanent establishment in Sweden, and therefore pay a reduced socialavgift of around 20-odd% instead of 31.4%, when they really do, once caught if Skatteverket cannot recover the difference from the company they will recover it from the employees that were paid in Sweden instead ... if they have an office here, are serious, then most likely they are OK smile.gif
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frenchviking
post 8.Apr.2013, 04:58 PM
Post #5
Joined: 19.Aug.2012

Thanks very much for your feedback!
I have gone back to discuss the pension now, we will see what comes out!
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