Employment & Labour Law
Employment Law for Employers and Professionals
Our Employment and Labour Law practice advises employers, executives and employees on the legal framework that governs working relationships in Sweden. Swedish employment law combines statute, collective agreements and the individual contract, and it gives both employers and employees substantial rights and obligations. We help employers to engage, manage and, when necessary, part with staff in compliance with those rules, and we advise individuals on their contractual and statutory position. We also advise international businesses that employ people in Sweden or move employees across borders, where the interaction of Swedish rules with foreign employment arrangements calls for particular care. Our aim throughout is to give clear, practical advice that allows each party to act on a sound understanding of its rights and responsibilities.
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Our Expertise
Swedish employment law is protective, procedural and strongly shaped by collective bargaining. An employer that hires, reorganises or ends a relationship without following the required process can find that the step is invalid, or that it is liable in damages, even where the commercial reason was sound. Our work is to make the legal requirements part of the employer’s planning, so that the process is right the first time.
We advise companies that employ staff in Sweden, whether they are Swedish businesses or foreign groups with a Swedish subsidiary or branch, and we advise senior executives, specialists and other individuals on their employment terms, on changes to them and on the end of the relationship. We aim to give each side a clear and balanced explanation of the rules and of the practical options available.
Employment questions rarely stand alone. They often arise together with a corporate transaction, a restructuring, a dispute, or the recruitment of an employee from abroad. We coordinate our employment advice with our work in those fields so that the client receives advice that fits the larger objective.
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How We Can Assist
We advise on the full employment relationship, from recruitment to its conclusion and the disputes that may follow.
Employment contracts
We draft and review employment agreements for employees, executives and managing directors, including probationary and fixed-term terms, remuneration and bonus arrangements, working time, confidentiality, intellectual property, restrictions after employment and the provisions that apply when the employer is bound by a collective agreement.
Employer obligations
We advise employers on the duties that Swedish law places on them: the information that must be given to employees in writing, compliance with working-environment, working-time and annual-leave rules, equal treatment and the prohibition of discrimination, and the handling of personal data in the workplace.
Employee rights
We advise individuals on their rights under their contract, statute and any collective agreement, including remuneration, leave, protection against unfair dismissal, anti-discrimination rights and the consequences of changes that an employer proposes to make to their terms.
Recruitment and employment conditions
We assist employers in hiring, from the structure of offers and contracts to the conditions that apply to fixed-term, part-time and temporary staff and to the use of staffing agencies. For international recruitment we coordinate with our immigration practice on work permits and right-to-work requirements.
Termination of employment
We advise on the termination of employment by an employer and by an employee, including the requirement of objective grounds, notice periods, the information and consultation procedures that apply, negotiated exits and settlement agreements, and the position of senior employees and managing directors.
Redundancy and restructuring
We advise employers on reductions in staff, reorganisations and business transfers, including the duty to negotiate with trade unions, the rules on selection for redundancy, offers of alternative work and the preservation of employment terms when a business is transferred to a new owner.
Workplace disputes
We advise on disputes about dismissal, pay, working conditions, discrimination and restrictive covenants, and we help clients to assess whether to negotiate, to follow the procedures of a collective agreement or to bring or defend a claim before the competent court or tribunal.
Collective agreements
We advise employers and employees on the effect of collective agreements, including whether an agreement applies to a particular workplace, how it interacts with individual contracts and statute, the employer’s duties of negotiation under the Co-Determination Act, and the consequences of entering or leaving an agreement.
International employment arrangements
We advise businesses and individuals on cross-border assignments, secondments, remote work from Sweden for foreign employers, the posting of workers to Sweden, and the questions of applicable law, social security, immigration and tax that these arrangements raise.
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Swedish and International Legal Considerations
The Swedish rules on employment are well developed. Their practical effect depends on the contract and on any collective agreement. These are the main elements.
Official legal sources
The Employment Protection Act (lag (1982:80) om anställningsskydd)
The Act provides that an employment relationship is, as a rule, permanent, and that an employer may terminate it only on objective grounds, which may relate either to redundancy or to the employee’s personal circumstances. The employer must give written notice, and the statutory notice period increases with length of service, from one month to six months. Where the employer is dismissing employees for redundancy, it must apply the statutory rules of selection, which take length of service into account, and must consider whether the employee can be offered other work.
The Co-Determination Act (lag (1976:580) om medbestämmande i arbetslivet)
An employer bound by a collective agreement, or employing union members, must in many situations negotiate with the trade union before taking important decisions, including reorganisations and dismissals for redundancy. A failure to observe these procedures can have legal consequences for the employer.
Discrimination and the working environment
The Discrimination Act (diskrimineringslagen (2008:567)) prohibits discrimination on the grounds it lists, and the Work Environment Act (arbetsmiljölagen (1977:1160)) places responsibility on the employer for a safe working environment. Both Acts apply to employers irrespective of any collective agreement.
Collective agreements
Many Swedish workplaces are covered by collective agreements that set wages, working hours and terms that go beyond the statute and, in some cases, depart from it. The agreement’s coverage is a matter of fact and of the employer’s membership of an employer organisation or its direct agreement with a union.
Disputes and the courts
Employment disputes are heard by the district court or, where collective-bargaining questions are involved, by the Labour Court (Arbetsdomstolen). Short time limits apply to many employment claims, so a dispute should be reviewed promptly.
Cross-border employment
The Posting of Workers Act (lag (1999:678) om utstationering av arbetstagare) applies to certain employees sent to work in Sweden by a foreign employer. Questions about applicable law, social-security cover and tax for international employees should be considered before a placement begins.
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Our Approach
Employment matters turn on the contract, the collective agreement and the procedure followed. We examine all three.
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Establishing the employment framework
We identify the parties, the employment contract, any collective agreement or company policy that applies, the employee’s length of service and the facts that have led to the question.
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Analysing the legal position
We assess the position under statute, the collective agreement and the contract, identifying the procedural requirements and the time limits that apply.
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Planning the steps
We set out the options and the sequence of steps, including notice, information and consultation duties, and we explain the legal and practical consequences of each.
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Documenting and communicating
We prepare the contracts, notices, settlement agreements and correspondence, with attention to precision, so that the documents achieve their intended effect.
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Resolving disputes and following up
If a disagreement arises, we advise on negotiation and the available forums, and we help the client to implement the outcome and to adjust its practices where that is warranted.
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Frequently Asked Questions
Can an employer in Sweden dismiss an employee freely?
No. Under the Employment Protection Act an employer must have objective grounds to terminate an employment, which relate either to redundancy or to the employee’s personal circumstances, and it must follow the statutory procedure. A dismissal that lacks objective grounds can be declared invalid, and the employer may be ordered to pay damages.
What notice period applies on termination?
The statutory notice period when the employer terminates a permanent employment ranges from one month, for employees with less than two years of service, up to six months for employees with ten years or more. A collective agreement or an individual contract may provide for longer periods. Employees who resign are generally subject to a notice period of one month unless otherwise agreed.
What is a collective agreement, and does it apply to us?
A collective agreement is a contract between an employer, or employer organisation, and a trade union that sets terms of employment for a workplace. Whether it applies to a particular employer depends on membership and on whether the employer has signed an agreement directly. We review the position and explain what it means for contracts and procedures.
Do employees who work remotely from Sweden for a foreign employer fall under Swedish law?
Not automatically, but Swedish mandatory rules can apply to work performed in Sweden, and questions of applicable law, social-security cover, taxation and permits must be considered. We advise on the allocation between Swedish and foreign rules and on the practical steps the employer should take.
What should we consider before offering a settlement agreement to an employee?
The agreement should be clear on the termination date and the terms of the exit, the treatment of notice, accrued leave, bonuses and benefits, confidentiality and any restrictions after employment. It is also important to consider the employee’s statutory protections and any union involvement. We prepare and negotiate settlement agreements with these points in view.
How can we reduce the risk of employment disputes?
By ensuring that contracts and policies are clear and up to date, that managers understand the procedures for performance issues and terminations, and that records are kept. We review employment documents and procedures and recommend practical improvements to reduce exposure.
The information provided here is general in nature and is not legal advice. It does not consider any particular document or circumstance. Swedish and EU rules change, and official texts should be read in the version in force.
Employment & Labour Law
Discuss Your Legal Matter
If you are an employer planning a hire, a reorganisation or a termination, or an individual with a question about your employment, write to us at info@smartlawafab.com with a short account, the contract and any collective agreement that applies. We will consider your enquiry and reply by email.