On 15 July 2021, the European Court of Justice (ECJ) stated that the provision on the application of the minimum wages of the country in which the work is habitually carried out cannot be waived, regardless of the existence of a transnational posting.
The decision delimits the perimeter within which the parties to an employment contract can freely choose the law to be applied.
The amendment to the Posting of Workers Directive had to be transposed into national law in July 2020.
Sweden has already complied with this obligation after undergoing a process of dialogue with the social partners.
The outcome regulation is not fully satisfactory as there is still a lack of clarity on a major part of the amendment concerning wages, which is likely to impact companies.