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Global Employment Law Guide

Sweden

(Europe) Firm Advokatfirman Vinge KB

Contributors Narin Melazade

Updated 23 Feb 2024
What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?
  • Employee
  • Self-employed (more a concept related to tax law than employment law)
Are there different types of employment contracts (for example, fixed-term, indefinite)?

Yes, fixed-term employment contracts (three different types for specific fixed-term employment, as a temporary substitute or seasonal employment) and contracts for indefinite employment.

What requirements need to be met in order for an employment contract to be valid?

None, an employment contract can be agreed orally. However, within one month of commencement of the employment, employers shall provide the following information to the employee in writing (this does however not mean the employee is not valid if this information is not provided):

  1. the names and addresses of the employer and employee, the starting date of the employment and the workplace or, if there is no fixed or primary workplace, information that the work shall be performed at varying locations or that the employee may personally decide on their workplace;
  2. a short specification or description of the employee's duties, occupational designation or title;
  3. whether the employment is for a fixed or indefinite term or whether it is probationary; and
    1. with respect to indefinite-term employment: the applicable notice of termination periods,
    2. with respect to fixed-term employment: the final date of employment or the conditions governing its termination, and what form of fixed-term employment the employment refers to;
    3. with respect to probationary employment: the length of the probationary period and any terms and conditions applicable for the probationary employment.
  4. the starting rate of pay, other employment benefits and the intervals at which the payment is to be paid;
  5. the length of the employee's normal working day or working week; 
  6. the arrangements for overtime or additional work and compensation for such work, where applicable,
  7. the minimum time limit for notification of the organization of regular working hours and on-call time and, where applicable
    a. that the organization will vary between different times and days,
    b. rules for changing shifts
  8. in the case of temporary agency workers, the name and address of the client companies,
  9. information on the entitlement to training provided by the employer, if applicable,
  10. the duration of the worker's paid annual leave
  11. the rules to be followed by the employer and the worker when one of them wants to terminate the employment relationship,
  12. the payment of the employer's contributions to the State and the social security protection provided by the employer; and
  13. the collective bargaining agreement applicable, where relevant.
Are part-time employees afforded the same rights as full-time employees?

Yes, there is specific legislation against discrimination of part-time and fixed-term employees.

Can employment contracts be assigned?

No, not without the employee's consent.

What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?

Employees have an individual right to oppose the transfer and will thus remain employed with their current employer. If there is a redundancy situation (because the business has transferred), it will be handled as any other redundancy situation. There is no statutory right to severance payments under Swedish law. If the employment transfers, the employee is entitled to the same terms and conditions as in the employment agreement. The employee also has a right to assimilate the previous employment period.

Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.

Not if it is a change of control of the shares of a company, as the employer will remain the same and the same rules as before will apply. Nothing changes from an employment law perspective.

If there is a transfer of business, Section 6b § in the Swedish Employment Protection Act will be applicable with a statutory right to transfer (keeping terms and conditions of employment and seniority, etc.). In such a transfer situation, the employer is also obliged to consult with the trade unions according to the Swedish co-determination legislation.

In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?

The mechanisms for effecting a change to terms and conditions of employment include:

  • Unilateral decision in accordance with the employer’s managerial prerogatives;
  • Through a CBA or by law;
  • Operating a clause in the employment contract which permits the change in question;
  • Custom and practice; and
  • Termination and re-hire on new terms (through a so-called ‘technical redundancy’).

Damages can be awarded to the employee if the change is unlawful. Remedies are financial and non-financial damages.

Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?

No, at-will employment does not exist in Sweden.

Employers need so-called legal reasons to terminate employment. Legal reasons can either be redundancy (e.g. technical, organizational or financial reasons connected to the employer or the business) or personal reasons (circumstances related to the individual). In the event of termination due to redundancy, the employer must observe the last in first out principle.

Are there remedies for dismissal without cause or wrongful termination?

Yes, the employee can claim that the termination is invalid and if a court of law rules the termination as invalid, the employee can be reinstated to employment. In addition, non-financial damages can be awarded. The employee can also decide not be challenge the termination as such and claim non-financial and financial damages. In case of breach of the last in first out rule, only damages can be awarded (the employee cannot claim reinstated). 

Are there protections for whistleblowers?

Yes, there is specific legislation that protects individuals against retaliatory measures when whistleblowing (under certain circumstances).

Do employees have a right to privacy? If so, what are the remedies for a breach?

Yes, GDPR has been implemented in Sweden where the employee is afforded protection. The Swedish Authority for Privacy Protection (Sw. Integritetsskyddsmyndigheten) monitors compliance with the provisions of the GDPR and supplementary rules. If an employer violates the GDPR, the Swedish Authority for Privacy Protection may use a number of corrective actions, such as:

  • warnings;
  • reprimands;
  • injunctions, including restrictions and prohibitions; and
  • administrative penalty fees.

If an employer processes personal data about an employee in violation of GDPR, the employee may be entitled to damages. The employee may claim damages directly from the employer or bring an action for damages in court.

Are employees afforded any anti-discrimination protection?

Yes, the Swedish Anti-Discrimination Legislation stipulated among other things that discrimination is prohibited in the following situations:

  • During the recruitment process – e.g. during the CV selection process, when advertising a vacant position, questions asked at interview, by not offering employment, etc.
  • During employment – remuneration, access to benefits, harassment, promotion, time off requests, dismissals, etc.
  • Post-employment – e.g. giving references.
Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?

Yes, there is detailed legislation regarding statutory rights to vacation, sick leave (medical leave) and parental leave. No changes have been proposed or have been implemented recently.

Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?

Yes, Swedish law recognizes the enforceability of restrictive covenants valid after the expiry of the employment which prevent employees from (i) being employed by or assisting a competitor; (ii) soliciting customers or engaging in commercial relations with customers; (iii) enticing away employees; and (iv) interfering with the employer’s relationship with a supplier. In accordance with the Swedish Labour Court's case law, restrictive covenants are only enforceable to the extent that they are no wider than is reasonably necessary to protect the employer’s business interests, such as its confidential information, customer base, and employee base. In addition, most Swedish employers are bound by a collective bargaining agreement covering white-collar employees which also restricts the use and scope of restrictive covenants. Restrictive covenants should not be more far-reaching than necessary to protect the employer’s legitimate business needs, and the geographical scope of a non-competition undertaking should not be wider than needed to protect the employer’s sensitive knowledge. In certain cases of very sensitive information, a wider geographical application may be regarded as reasonable. Since the enforcement of a non-competition undertaking is motivated by a need to protect sensitive company-specific knowledge, the term of the non-competition undertaking should not be longer than required to protect the sensitive information. If the employer's need for the non-competition undertaking is not long-lasting, the restrictive period should not be longer than nine months. Otherwise, the restrictive period should in general not be longer than 12 months. However, the restrictive period should never be longer than necessary in order to protect the employer’s interests. Thus, an individual assessment must always be made. For non-compete undertakings, compensation must be paid. Such compensation must amount to at least sixty percent of the employee’s average monthly remuneration.

The CBA is not applicable in relation to non-solicitation undertakings. However, the scope of the undertakings must be reasonable to protect the employer’s business; i.e. normally not extended beyond the group of customers and/or clients that the employee has had interactions with or knowledge of. It is also common that it is restricted to clients or customers, or prospective clients or customers, who have been actively engaged by the previous employer sometime during a period of 12 months prior to the termination. In case the scope is extended further, there is a risk, depending on the circumstances, that it may be regarded as unreasonable and therefore unenforceable. Undertakings of non-enticement or recruitment of employees are enforceable to the extent that may be considered as a reasonable protective measure preventing important employees from being recruited to a competing business during a reasonable transitional period after the departure of the employee who is bound by the non-solicitation undertaking. Furthermore, the scope of the undertaking should be limited to colleagues with whom the restricted employee has had professional cooperation, or who otherwise have professional competence of importance to the protected employer.

Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?

The employer can initiate a so-called technical redundancy to enforce the new terms and conditions, it would, however, be rare.

Does your jurisdiction require contributions to a pension or retirement scheme?

No. However, state pensions are paid through statutory social security contributions which are paid on top of salary. Employers bound by the CBA are thus obliged to contribute to the specific pension schemes prescribed by the CBA.

Are certain benefits mandated by your jurisdiction?

Vacation is provided for by the employer. Parental leave pay and sick pay are provided by the Swedish Social Insurance Agency (Sw. Försäkringskassan). Additional benefits may be provided for in the CBA (such as additional parental leave pay, overtime payment, additional days off, etc).

Is it permitted to have a mandatory retirement age in your jurisdiction?

Under Swedish law, the employee is currently entitled to remain employed until the age of 69. During the month before the employee reaches 69, the employer can terminate the employment by a notification (legal grounds are not required). 

Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?

These types of benefits normally have a specific age limit in terms and conditions. Pension schemes provided for by the CBA are sometimes fully safeguarded at the age of 63, whilst insurance is normally paid until the end of employment. It may be noted that pension and insurance benefits are exempted from the Anti-Discrimination legislation.

Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp...

No, the employer cannot make the COVID-19 vaccine mandatory for its employees under Swedish law.

Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?

Yes, the employer can require that employees return to work in the office. The main principle under Swedish employment law is the employer's right to manage work. This means that the employer, subject to the employment agreement, has the exclusive right to instruct the employee on how, when and where to perform the work tasks. Therefore, the employer has a right to decide that employees shall perform their work from the office. If an employee refuses to return to the office to perform the work tasks according to the employer's instructions, the employee may risk his/her employment in the long run. However, the employer cannot terminate the employee’s employment directly as a first action. The employer is obliged to take several corrective actions (such as a warning) prior to terminating the contract as the employer must have so-called legal grounds for termination.

Global Employment Law Guide

Sweden

(Europe) Firm Advokatfirman Vinge KB

Contributors Narin Melazade

Updated 23 Feb 2024