Umbrella employment
Umbrella employment is well suited for those who wish to be able to control the organization of their work to a greater degree, but who do not want to give up safe working conditions. The umbrella employee is an employee and pays A-tax. As an umbrella employee, you also have the right to claim statutory rights such as employment protection according to LAS, sick pay according to the Sick Pay Act and holiday benefits.
To be umbrella employee
By joining an umbrella company, a person becomes umbrella employee. The umbrella employee can then invoice for assignments when the umbrella company has verified and approved the assignment in question. The umbrella company then enters into an agreement with the end customer and offers the umbrella employee who performs the assignment a fixed-term employment that regulates the execution of the assignment.
For whom is umbrella employment suitable?
Umbrella employment is suitable for many types of workers with different conditions and experiences. Today, the umbrella employee make up almost a cross-section of Sweden, with everything from students who are given a springboard into working life to seniors who want to stay employed after retirement.
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Norms and definitions
The employment law definition of umbrella employee reads as follows:
- An umbrella employee has a regulated right to procure assignments with clients on behalf of umbrella company.
- The umbrella company is the employer of the umbrella employee and provides temporary employment for the execution of tasks for one or more different clients.
- The umbrella company has F-tax, is the legal contractor and as such must deliver in relation to the client.
- The umbrella company invoices the client, reports employer contributions, makes tax deductions and pays out the remaining amount as salary to the umbrella employee.
- The umbrella employee has A-tax and, as an employee, has the right to claim statutory rights such as e.g. employment protection according to LAS, sick pay according to the Sickness Pay Act and holiday benefits.
- The umbrella company takes out insurance for the umbrella employee and must carry out systematic environment work in accordance with the Work Environment Act.