Inadequate work permit checks pose a risk of errors and abuse

The Swedish National Audit Office has examined the Swedish Migration Agency’s checks on work permits for individuals who are not EU/EEA citizens. The overall conclusion is that the checks do not effectively detect and prevent errors and abuse.

Because of these deficiencies, numerous permits have been granted to employers who have previously been rejected because they were unscrupulous, falsified trade union statements or had sham employment contracts. In at least 12% of these cases, the employer had been denied permits on at least five occasions.

“These shortcomings increase the risk of wage dumping and distorted competition, putting legitimate companies at a disadvantage. They also create a hotbed for work-related crime and labour exploitation,” says Auditor General Christina Gellerbrant Hagberg.

It is considered that the problems partly stem from the Swedish Migration Agency’s lack of clear procedures for determining when enhanced investigations should be conducted, and failure to conduct such investigations in all cases containing an elevated risk of error and abuse.

Furthermore, the Swedish National Audit Office notes that the Swedish Migration Agency’s enhanced checks are imprecise because they are essentially performed if the employer operates in a high-risk sector or is a newly started business. Using ‘high-risk sector’ as the main indicator is ineffective, partly because of the risk of employers deliberately refraining from stating that they operate in known high-risk sectors to circumvent enhanced checks. This also leads to unnecessary checks of legitimate business operators in sectors with an elevated risk.

“The checks would be much more precise and effective if the Swedish Migration Agency used more risk indicators, for example if the employer has previously been deemed unscrupulous,” says Samir Cedic, Project Leader for the audit.

One problem is the Swedish Migration Agency’s limited right to store and process personal data about employers and representatives. Searches for information about employers are therefore limited to 18 months back in time, and there is a risk of any previous abuse going undetected. This also means that information about employers is not collated and readily available in processing systems, and that information about permit abuse is lost.

Checks are impeded by case officers’ lack of direct access to the Swedish Tax Agency’s income data in all cases. Besides, not all case officers have access to detailed company information, such as boards and any court rulings.

The audit also shows that checks are inadequate in ensuring that employers without collective agreements have insurance coverage for their employees. This may have serious consequences for the employee in the event of a work-related accident.