ICLG - Employment & Labour Laws and Regulations - Sweden Chapter covers common issues in employment and labour laws and regulations – terms and conditions of employment, employee representation and industrial relations, discrimination, maternity and family leave rights and business sales.
1.1 What are the main sources of employment law?
Sweden is generally governed by the civil law tradition. Within employment law, Swedish legislation aims (in some ways) to resemble that of other Nordic countries. EU law has, with few exceptions, been rapidly implemented into the Swedish legal system. The main sources of national employment law are found in the Swedish Constitution, statutes, authority provisions, case law, collective bargaining agreements, individual employment contracts and employer decision-making.
1.2 What types of worker are protected by employment law? How are different types of worker distinguished?
The law protects employees equally. Hence, there is no legal difference between blue-collar and white-collar employees and, e.g. the Employment Protection Act (1982:80) protects employees in the public and private sectors equally.
The following categories of employees do not enjoy employment protection through the Employment Protection Act:
1.3 Do contracts of employment have to be in writing? If not, do employees have to be provided with specific information in writing?
Employment contracts do not have to be in writing. However, an employer shall inform the employee of the most important terms and conditions of employment. The scope of this written information has recently been extended as Sweden implemented Directive (EU) 2019/1152 on transparent and predictable working conditions in the European Union. Information regarding a specific fixed-term employment shall already be provided by the employer when the parties enter into the employment contract. Other information shall be provided within seven days or within a month from commencement of employment.
Normally, this written employer information is provided in a written employment contract.
1.4 Are any terms implied into contracts of employment?
The duty of loyalty is implied in all contracts of employment. The duty is mutual, whereby the employer shall safeguard the employer-employee relationship in various ways and the employee shall avoid any conflict of interest that could reasonably be demanded, considering the employee’s position, etc.
1.5 Are any minimum employment terms and conditions set down by law that employers have to observe?
There are minimum employment terms and conditions set forth in, for example, the following acts:
There is no legislation on minimum pay in Sweden.
1.6 To what extent are terms and conditions of employment agreed through collective bargaining? Does bargaining usually take place at company or industry level?
The Swedish labour market is, to a wide extent, regulated by collective bargaining agreements in which terms and conditions are set out in detail.
Collective bargaining agreements exist both at industry and company level; however, bargaining takes place foremost at industry level.
1.7 Can employers require employees to split their working time between home and the workplace on a hybrid basis and if so, do they need to change employees’ terms and conditions of employment?
No, as that would require an individual agreement or, possibly, a collective bargaining agreement.
1.8 Do employees have a right to work remotely, either from home or elsewhere?
No, as that would require an individual agreement.
2.1 What are the rules relating to trade union recognition?
The recognition and formation of trade unions is guaranteed and protected by constitutional law. Freedom of association is guaranteed for both employees and employers.
2.2 What rights do trade unions have?
The main function of trade unions is to safeguard the interests of their members, i.e. the employees, when it comes to the work environment, employment protection, wage development, etc. The means to achieve the greatest influence for their members is to agree on collective bargaining agreements and to achieve high coverage on the labour market for these agreements.
Employers bound by a collective bargaining agreement shall consult with the local trade union prior to taking any decision of importance relating to either the organisation as such (business-related changes) or to the terms and conditions of individual employees (individual changes). Also, employers not bound by a collective bargaining agreement have a duty to consult with the trade unions in certain situations.
In the line of business, the employer further has a duty to continuously inform the local trade union on business development, finances, etc.
The local trade union representatives are chosen by members of that specific trade union.
2.3 Are there any rules governing a trade union’s right to take industrial action?
Constitutional law and the Co-Determination in the Workplace Act (1976:580) provide trade unions with a far-reaching right to take industrial action.
2.4 Are employers required to set up works councils? If so, what are the main rights and responsibilities of such bodies? How are works council representatives chosen/appointed?
There is no such requirement. However, in accordance with EU Directive 2009/38/EC, an employer shall, under certain circumstances, assist and facilitate the setting up of a European Work Council.
2.5 In what circumstances will a works council have co-determination rights, so that an employer is unable to proceed until it has obtained works council agreement to proposals?
With regard to works councils, the question is not relevant from a Swedish perspective. However, employers have a duty to consult with the trade unions in various situations prior to taking decisions.
2.6 How do the rights of trade unions and works councils interact?
This is not relevant in Sweden.
2.7 Are employees entitled to representation at board level?
For privately held limited liability companies bound by a collective bargaining agreement and with at least 25 employees, the local trade union has a right to decide upon and appoint two employee representatives on the board of directors. Where the number of employees exceeds 1,000, employees have a right to three representatives.
3.1 Are employees protected against discrimination? If so, on what grounds is discrimination prohibited?
Employees are protected against discrimination, which is prohibited on the grounds of gender, age, transgender identity, sexual orientation and ethnic origin, as well as religion and disability.
3.2 What types of discrimination are unlawful and in what circumstances?
Discrimination is defined as:
The Discrimination Act also prohibits reprisals.
Further, the Parental Leave Act (1995:584) prohibits unfavourable treatment of an employee who intends to or has taken out parental leave according to the act.
A separate act prohibits discrimination of part-time employees as well as fixed-term employees.
3.3 Are there any special rules relating to sexual harassment (such as mandatory training requirements)?
Employers are responsible for taking active measures aimed at preventing discrimination, including sexual harassment and promoting equal rights and opportunities in the workplace. More precisely, an employer shall establish policies and routines to prevent sexual harassment. The policies and routines shall, on a regular basis, be evaluated and, if needed, amended. If an employer employs more than 25 employees, the active measures must be documented.
3.4 Are there any defences to a discrimination claim?
The employer has the burden of proof in establishing the equal treatment of employees. Thus, the employer must be able to show that the reasons for differential treatment have been objectively justified.
3.5 How do employees enforce their discrimination rights? Can employers settle claims before or after they are initiated?
If the employee is a member of a trade union, the trade union may raise claims on behalf of the employee. If not settled, the trade union may bring the claims before the Labour Court.
If the employee is not a member of a trade union, or if the trade union for any reason chooses not to represent the employee, the employee may report the alleged discrimination to the equality ombudsman (DO). The DO will make an investigation and potentially raise claims on behalf of the employee. If not settled, the DO may bring the claims before the Labour Court.
Finally, the employee may bring claims for alleged discrimination before the District Court.
The parties may settle the case by way of a settlement agreement.
3.6 What remedies are available to employees in successful discrimination claims?
The employee may claim damages mainly for injury to feelings and, under certain circumstances, for financial loss. Further, discriminating terms of a contract may be declared null and void.
3.7 Do “atypical” workers (such as those working part-time, on a fixed-term contract or as a temporary agency worker) have any additional protection?
Less favourable employment terms than those applicable to other employment relationships may not, without proper and justified cause, be applied to fixed-term and part-time employment relationships merely on the basis of the duration of the employment contract or working hours. Information on vacancies must be provided in a way that ensures that part-time and fixed-term employees, as well as temporary agency workers of the user company, have the same opportunity to apply for these jobs as permanent or full-time employees.
If the employer, hiring its employee as a temporary agency worker to a user company, is neither bound by a collective agreement nor required to observe a generally applicable collective agreement in its employment relationships, the provisions of the collective agreement applicable to the user company must at least be applied to the employment relationship of the temporary agency worker.
A temporary agency worker is entitled to benefit from the employee benefits and services offered by the user company to its employees on the same conditions as the employees of the user company, unless a difference in treatment can be justified on objective grounds.
3.8 Are there any specific rules or requirements in relation to whistleblowing/employees who raise concerns about corporate malpractice?
The Swedish Whistleblowing Act is the result of the implementation of Directive (EU) 2019/1937 on the protection of persons reporting on breaches of Union law (Whistleblower Protection Directive). The Whistleblowing Act covers both the private and public sectors, entails a stronger protection for whistleblowers and requires, inter alia, employers with 50 or more employees to implement internal procedures and channels for the reporting of, and following up on, irregularities. Said whistleblowing procedures are intended to provide safe channels for whistleblowers to report irregularities.
The Whistleblower Act protects employees and other individuals (e.g. board members, consultants and jobseekers) from retaliation prompted by reporting any irregularities in a work-related context. If an employee is subject to reprisals by the employer, as a consequence of the employee’s whistleblowing, the employer may be obliged to pay damages to the employee.
Following a whistleblowing procedure, personal data (e.g. sensitive personal data such as accusations of crimes) will be processed. Thus, an employer must ensure that its whistleblowing procedure complies with the data protection requirements set out in the General Data Protection Regulation (GDPR).
3.9 Are employers required to publish information about their gender, ethnicity or disability pay gap, or salary or other diversity information?
No, employers are not required to publish such information.
4.1 How long does maternity leave last?
Maternity leave is defined as seven weeks of consecutive leave just before giving birth and seven weeks just after giving birth. Two weeks are mandatory in connection with giving birth. Maternity leave is also guaranteed for breastfeeding.
4.2 What rights, including rights to pay and benefits, does a woman have during maternity leave?
The employer has no duty according to law to pay anything to the employee during the maternity leave. The employee normally receives parental benefits through the social security system. By way of collective bargaining agreements, many employers, however, have an obligation to provide parental pay.
4.3 What rights does a woman have upon her return to work from maternity leave?
The employee has the right to return to her employer and her position. If her position is no longer available, she shall be offered another equivalent position in accordance with her employment contract.
4.4 Do fathers have the right to take paternity leave?
Male employees have a right to paternity leave in connection with a child’s birth or adoption (10 days). During these 10 days, both parents can stay at home with their child and receive parental pay benefits via the social security system.
4.5 Are there any other parental leave rights that employers have to observe?
According to the Parental Leave Act, employees have a right to leave in order to take care of their child during the first 18 months from birth or adoption (until the adopted child turns eight, unless next of kin adoption), a right to reduce working hours until the child is eight years of age, and further a right to temporary leave in order to take care of a sick child (until the child is 12 years of age). During the first 18 months from a child’s birth, the parents are entitled to 480 days of parental pay benefits via the social security system. Apart from 90 days each, the parents can divide the days between them.
Many collective bargaining agreements contain provisions on supplementary parental pay.
4.6 Are employees entitled to work flexibly if they have responsibility for caring for dependants?
Please see question 4.5 above.
5.1 On a business sale (either a share sale or asset transfer), do employees automatically transfer to the buyer?
If the business sale leads to a change of employer, the employees automatically transfer to the buyer. However, an individual employee has a right to oppose the transfer and stay employed with the seller.
5.2 What employee rights transfer on a business sale? How does a business sale affect collective agreements?
Any individually accrued rights, such as vacation, will transfer to the buyer. The terms and conditions of employment according to the collective bargaining agreement, which the seller is bound by, transfer to the buyer for a period of 12 months. Occupational pension vehicles do not transfer.
5.3 Are there any information and consultation rights on a business sale? How long does the process typically take and what are the sanctions for failing to inform and consult?
Both the seller and buyer have a duty to consult the relevant trade unions. The consultation process normally takes between two and four weeks. Should the employer fail to consult, the trade union may claim damages.
5.4 Can employees be dismissed in connection with a business sale?
Employment contracts may not be legally terminated on the grounds of the transfer itself.
5.5 Are employers free to change terms and conditions of employment in connection with a business sale?
Harmonisation of conditions of employment according to collective bargaining agreements can be made by way of agreement with the relevant trade unions. If this is not possible, the buyer may not legally change the terms and conditions of employment based on the seller’s collective bargaining agreement during the first 12 months following the transfer. Other changes in individual employment contracts require either mutual agreement between the employer (buyer) and the employee or termination of the employment contract with the purpose of changing the terms and conditions. The employer shall have objective grounds for termination.
Termination of Employment
6.1 Do employees have to be given notice of termination of their employment? How is the notice period determined?
In relation to employment until further notice, an employer shall serve a written notice of termination (dismissal with notice), regardless of the reason therefor. The notice period according to law can vary between one to six months depending on the length of service. The employee may, unless otherwise agreed, give notice observing a one-month notice period.
Collective bargaining agreements often provide for notice periods other than those according to law.
In the case of a serious breach of contract from the employee’s side, the employer shall serve a written notice of immediate dismissal (dismissal without notice).
In relation to fixed-term contracts, the employer normally shall notify the employee that the employment will terminate on a given date.
6.2 Can employers require employees to serve a period of “garden leave” during their notice period when the employee remains employed but does not have to attend for work?
The employer may, under certain circumstances, especially when the employee him/herself has given notice of termination, unilaterally release the employee from the duty to perform work during the notice period. When the parties agree on a mutual separation, it is also common to agree on garden leave.
6.3 What protection do employees have against dismissal? In what circumstances is an employee treated as being dismissed? Is consent from a third party required before an employer can dismiss?
The employer shall have objective grounds for dismissal with notice and legal grounds for summary dismissal (without notice).
There are no circumstances where the employee is treated as being dismissed; rather, it is the measures taken by the employer that constitute a dismissal.
No consent from a third party is required prior to serving a notice of termination.
6.4 Are there any categories of employees who enjoy special protection against dismissal?
Employees with reduced ability who have enjoyed certain adjustments of work, and employees on parental leave, enjoy special protection in connection with dismissal due to redundancy. The local trade union has a right to protect its elected local representatives under certain circumstances in relation to redundancy dismissals.
6.5 When will an employer be entitled to dismiss for: 1) reasons related to the individual employee; or 2) business-related reasons? Are employees entitled to compensation on dismissal and if so, how is compensation calculated?
An employer will be entitled to dismiss an employee for the following reasons:
Notwithstanding the reasons for the employer serving notice of termination, the employer shall consider possible redeployments prior to serving the actual notice.
If the employer has objective grounds for dismissal, salaries and other employment benefits shall be paid during the notice period. No other compensation is due.
6.6 Are there any specific procedures that an employer has to follow in relation to individual dismissals?
Dismissal due to personal reasons shall typically be preceded by other measures from the employer, such as a warning or performance improvement plan. If such measures do not precede a dismissal, the breach of contract should be of a very severe nature. Every dismissal due to personal reasons shall be subject to a thorough legal review in order to avoid the most obvious risks. Prior to serving a notice of termination, the employer shall notify the employee of the considered termination and, if the employee is a member of a trade union, the trade union shall be notified as well. The employee/trade union has a right to demand consultations on the considered termination.
In relation to dismissals due to business-related reasons (redundancy), an employer bound by a collective bargaining agreement shall consult with the trade union prior to taking the decision leading to restructuring. Who to dismiss is also a topic for consultation with the trade union.
Regardless of the reasons for dismissal, there are formal requirements of the written notice to be handed to the employee.
6.7 What claims can an employee bring if he or she is dismissed? What are the remedies for a successful claim?
The employee can either claim damages for injury to feelings or financial loss, or claim the dismissal as null and void.
The damages for injury to feelings are between EUR 13,000–19,000. Financial damages range from six to 32 months’ pay, depending on length of service.
6.8 Can employers settle claims before or after they are initiated?
Yes, the parties may agree on settling the claims before or after they are initiated, as long as the court has not delivered its ruling.
6.9 Does an employer have any additional obligations if it is dismissing a number of employees at the same time?
If more than five employees will be dismissed due to redundancy during a period of 90 days, the employer has a duty to notify the Swedish Public Employment Service.
6.10 How do employees enforce their rights in relation to mass dismissals and what are the consequences if an employer fails to comply with its obligations?
Swedish employment law makes no distinction between mass dismissals and other dismissals; rather, the law defines dismissal due to redundancy without regard to the number of employees concerned.
7.1 What types of restrictive covenants are recognised?
The most common post-termination restrictions are confidentiality, non-competition, non-solicitation and customer protection.
7.2 When are restrictive covenants enforceable and for what period?
The possibilities for an employer to enforce a non-competition clause are rather restricted. Typically, only key employees should be subject to such restrictive covenants. These are enforceable after the employee’s own dismissal, dismissal with notice from the employer due to personal reasons and dismissal without notice. It is common to enforce such restrictions for a period of between six and 12 months. Employers bound by collective bargaining agreements may have other restrictions to take into consideration.
Non-solicitation and customer protection clauses are widely used for a period ranging between six and 18 months. Case law indicates that such non-solicitation clauses normally should not restrict the employee for more than six months after termination.
Confidentiality undertakings range from six months onwards and may not have any time limitation at all.
7.3 Do employees have to be provided with financial compensation in return for covenants?
Normally, the employer will have to pay 60% of the employee’s salary during the time under which a non-competition clause is valid.
The employer does not have to pay any compensation for confidentiality, non-solicitation and normally not for customer protection clauses either.
7.4 How are restrictive covenants enforced?
Restrictive covenants are normally combined with a contractual penalty. Such contractual fines normally range from four to six months’ salary.
If the restrictive covenants are not combined with a contractual penalty, the employer can take the matter to court and request compensation from the employee due to the breach. Violation of a non-competition obligation results in an obligation to pay damages for verifiable damage.
8.1 How do employee data protection rights affect the employment relationship? Can an employer transfer employee data freely to other countries?
The GDPR has been implemented in Sweden and is supplemented by the Swedish act (2018:218). The employer-employee relationship is generally considered an imbalanced relationship in which the employer wields more power than the employee. This means, e.g. that an employer in most cases cannot rely on consent as a legal basis for the processing of employee personal data (consent has to be freely given between balanced parties and provided voluntarily). In its role as a data controller for the processing of its employees’ personal data, the employer must remember to be transparent and informative about which processing activities are carried out by the controller and any other parties that the employer may share personal data with.
Legally obtained and processed employee personal data can be transferred to other countries within the EU/EEA provided there is a valid legal purpose and basis for such transfer and that necessary security measures have been implemented. Transfer of employee personal data to a country outside EU/EEA (third countries) is strictly regulated in the GDPR. Employers need to be particularly careful with over-sharing personal data about employees within an international corporate group, and well-documented and justified access rights must be put in place.
8.2 Do employees have a right to obtain copies of any personal information that is held by their employer?
Yes, employees have a right to receive a copy, in a machine-readable format from the employer, of the personal data currently held by the employer. What is important to note is that this does not give the employee a right to receive a copy of the entire document/file/system where the personal data is held. The copy must include all personal data held that relates to the employee at hand but not any other information that may be included in the same document/file/system, such as information about other individuals or matters.
8.3 Are employers entitled to carry out pre-employment checks on prospective employees (such as criminal record checks)?
In principle, it is possible to carry out pre-employment checks in Sweden; however, there are strict and detailed rules regarding who will have access and what will be accessed, e.g. criminal records and financial status. Only authorities in Sweden are allowed to carry out processing of personal data relating to criminal convictions and offences covered by the GDPR. Other organisations than authorities must have a lawful basis in regulations or special decisions to be able to process such personal data. It is possible to seek permission from the Swedish Authority for Privacy Protection to process personal data relating to criminal convictions and offences for a specific purpose and under certain strict circumstances.
If the employer carries out business within schools or the childcare industry, the employer is obliged to check criminal records. Other employers can decide to implement procedures where they ask the job seeker to retrieve a criminal record and show the employer. Typically, these matters can be handled with a manual process of the information where the employee provides the employer with an extract from the Swedish police authority (unopened envelope), which is destroyed or handed back to the employee after reading, i.e. no automated processing of the criminal record extract takes place covered by the GDPR.
8.4 Are employers entitled to monitor an employee’s emails, telephone calls or use of an employer’s computer system?
Yes, it is possible for employers, to a certain extent, to monitor an employee’s emails, telephone calls, or use of their computer systems, especially if the employer has a policy clearly stating what is being monitored, as well as how and why. The obligations on transparency and information under the GDPR must also be met.
8.5 Can an employer control an employee’s use of social media in or outside the workplace?
Employers may only control an employee’s private use of social media if the employee, by use of social media, acts in breach of his/her employment contract, e.g. the duty of loyalty. It is advised to provide clear instructions to employees on what is expected by the employer when using social media platforms in or outside their workplace. If an employee administers social media services as part of his/her work duties, he/she must be aware of which actions must be taken prior to carrying out the processing of personal data, such as communicating with other users and sharing photos of individuals.
8.6 Are there any restrictions on how employers use AI in the employment relationship (such as during recruitment or for monitoring an employee’s performance or productivity)?
There are no specific restrictions.
9.1 Which courts or tribunals have jurisdiction to hear employment-related complaints and what is their composition?
Employment-related complaints are heard by District Courts with a composition of one to three judges and the Labour Court with a composition of three to seven members. In the standard seven-member court, there are three neutral members, two members representing the interests of the employer and two representing employee interests. The chairman and vice chairman are found among the neutral members of the court.
9.2 What procedure applies to employment-related complaints? Is conciliation mandatory before a complaint can proceed? Does an employee have to pay a fee to submit a claim?
An employment-related civil case becomes pending when a written application for a summons is filed by the plaintiff to the competent District Court or Labour Court. After that, a summons is issued where the defendant is requested to respond to the demands. Generally, the proceeding continues to an oral preparation in a preparatory hearing, and after that to a main hearing.
Conciliation is not mandatory, but the possibilities for settlement are commonly explored throughout the process.
The District Courts collect a fee (EUR 280) from the plaintiff for submitting a claim. The Labour Court collects no such fee.
9.3 How long do employment-related complaints typically take to be decided?
The main hearing in a District Court is scheduled between 12 to 18 months after a summons is filed.
The main hearing in the Labour Court is normally scheduled within 12 months after a summons is filed.
9.4 Is it possible to appeal against a first instance decision and if so, how long do such appeals usually take?
It is possible to appeal against a District Court decision. Such appeal is directed to the Labour Court, which will first take a decision on the merits on a leave to appeal within two to six months.
In many employment-related disputes, the Labour Court is the first and final court settling the matter.
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