Sweden: The greatest reform of Swedish employment law in modern times & More News Here

On 8 June 2022, the Swedish parliament voted to implement important modifications to Swedish employment law. The new guidelines will enter into power on 30 June 2022, and shall be utilized as of 1 October 2022. Eva Nordmark, Sweden’s minister for Employment and Gender Equality, has described this because the “greatest reform of Swedish employment law in modern times”.

Many of the modifications will likely be applied in the cornerstone of Swedish employment law, particularly the Employment Protection Act (Sw. Lagen om anställ-ningsskydd). The purpose is to make the Act extra versatile but extra predictable for each employers and workers. In distinction to conventional legislative merchandise, these new amendments have been negotiated and agreed upon in precept by the Swedish employer federations on the one hand, and the commerce unions on the opposite, and subsequently fine-tuned as half of the legislative course of.

The modifications have been criticized e.g. for being unfairly advantageous to the labour events and their members, offering for much less versatile guidelines for employers not certain by any collective bargaining settlement.

In parallel to the reform above, Sweden may even implement the EU directive on clear and predictable working situations (Sw. Arbetsvillkorsdirektivet) on 29 June 2022.

We advocate all employers to familiarize themselves with the upcoming legislative modifications and to make sure that their employment settlement templates and insurance policies are aligned with the brand new guidelines. We look ahead listening to from you when you have any questions.

Significant modifications to the Swedish Employment Protection Act

The modifications covers a broad spectrum, from redundancy to efficiency terminations. The new act will make it simpler for employers to safeguard key workers when making reductions in the power, enabling employers to exclude as much as three individuals from the choice pool in case of redundancy. Currently this chance is barely out there for smaller corporations, however now all corporations will be capable to exclude as much as three individuals. Employers certain by collective bargaining settlement will be capable to ringfence much more workers.

Historically, employers in Sweden have struggled with terminations as a result of causes regarding the workers personally (akin to efficiency terminations), e.g. since workers merely wanted to dispute the termination in order to be entitled to stay employed (with pay) all through the court docket proceedings. That proper will now not apply. Instead the worker is entitled to back-pay if the declare for reinstatement is profitable. The evaluation of “just cause” may even change into extra standardized, focusing extra on the act or omission as such, and fewer on the worker’s private state of affairs and potential to enhance going ahead.

The enhancements for employers on the subject of dealing with its indefinite time period workers is balanced with much less flexibility in relation to its mounted time period workers. The most length of the generic mounted time period employment is diminished from 24 to 12 months, and the workers will qualify for preferential therapy to different vacancies after 9 months. Employers may even be required to supply company workers an indefinite time period employment after 24 months on the similar buyer website, or alternatively pay the worker a charge equal to 2 months’ wage.

Throughout, the brand new guidelines incorporates a number of openings for the employer federations and the commerce unions to agree on completely different or extra laws – eg on how “just cause” must be understood. However, this have to be achieved by way of a centrally negotiated collective bargaining settlement, which means that the big, nationwide umbrella organizations must be concerned.

EU directive on clear and predictable working situations

Sweden is on observe with its implementation of Directive (EU) 2019/1152 on clear and predictable working situations and the directive will likely be applied into Swedish law on 29 June 2022.

In temporary, the directive considerably will increase the scope of the data that employers are obliged to supply to workers on the outset of the employment. Also, as a substitute of a unified timeline (of one month) as earlier than, the brand new guidelines may have completely different deadlines for various classes of data – in some circumstances as brief as every week.

Going ahead, it should even be tougher for employers to restrict workers’ rights to carry different employments in parallel except objectively justified.

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