Establishing compliant employment relationships in Sweden requires a thorough understanding of local labor law, primarily governed by the Employment Protection Act (LAS - Lagen om anställningsskydd). A well-drafted employment agreement is fundamental, serving as the legal basis for the relationship between the employer and the employee. It outlines the terms and conditions of employment, ensuring clarity and legal certainty for both parties.
Swedish law emphasizes the importance of written employment contracts, although verbal agreements can be legally binding. However, employers are legally obligated to provide employees with written information about their employment terms within one month of the employee starting work. This document should detail the essential aspects of the employment relationship, ensuring transparency and adherence to statutory requirements.
Types of Employment Agreements
In Sweden, the primary type of employment is indefinite employment (tillsvidareanställning), which is considered the standard and most secure form. Fixed-term employment (tidsbegränsad anställning) is permitted only under specific circumstances defined by law or collective agreements. If an employer hires someone without specifying a fixed term or a valid reason for a fixed term, the employment is automatically considered indefinite.
Here are the common types of employment agreements:
| Type of Agreement | Description | Default/Exception |
|---|---|---|
| Indefinite Employment | Permanent employment with no end date. Termination requires just cause (dismissal or redundancy). | Default |
| General Fixed-Term | Used for specific, temporary needs. An employee's general fixed-term employment converts to indefinite after accumulating more than 2 years of employment in this form within a 5-year period. | Exception |
| Substitute Employment | Used to replace an absent employee (e.g., on sick leave or parental leave). Converts to indefinite after accumulating more than 2 years of employment as a substitute within a 5-year period. | Exception |
| Seasonal Work | Used for work tied to specific seasons (e.g., agriculture, tourism). | Exception |
| Employment for Employees Over 67 | Specific rules apply to employees who continue working after reaching the age of 67 (or the applicable retirement age). | Exception |
Essential Clauses Required in Employment Contracts
Swedish law mandates that employers provide employees with written information about their employment terms within one month of starting work. While not strictly the "contract" itself if a separate written agreement exists, this document must contain specific details. A comprehensive written employment contract should include at least these mandatory terms:
| Required Information | Details |
|---|---|
| Employer and Employee Details | Names, addresses, and personal identification numbers. |
| Start Date | The date the employment commenced. |
| Workplace | Location(s) where work is performed. |
| Job Title/Description | A brief description of the employee's duties and position. |
| Type of Employment | Indefinite, fixed-term (specifying the type and end date), or probation. |
| Probationary Period | If applicable, the duration of the probationary period. |
| Notice Periods | Applicable notice periods for termination by either party. |
| Initial Salary/Wage | Gross salary, including any supplements or benefits. |
| Pay Frequency | How often salary is paid (e.g., monthly). |
| Working Hours | Normal daily or weekly working hours. |
| Annual Leave | Entitlement to paid annual leave. |
| Applicable Collective Agreement | If applicable, details of the collective agreement governing the employment. |
| Social Security Benefits | Information on social security benefits provided by the employer. |
| Training Entitlement | If applicable, any entitlement to training provided by the employer. |
Probationary Period Regulations and Practices
Swedish law permits the use of a probationary period (provanställning) for a maximum duration of six months. This type of employment is a form of fixed-term contract specifically designed to allow the employer and employee to assess the suitability of the employment relationship.
During the probationary period, either the employer or the employee can terminate the employment with notice, typically two weeks, without needing to demonstrate just cause for dismissal. If the employment is not terminated by the end of the six-month period, it automatically converts into indefinite employment. While not mandatory, probationary periods are common, particularly for new hires in indefinite positions.
Confidentiality and Non-Compete Clauses
Confidentiality clauses are generally enforceable in Sweden and are standard in employment agreements. They typically prohibit the employee from disclosing sensitive company information during and after employment.
Non-compete clauses (konkurrensklausuler) restrict an employee's ability to work for a competitor or start a competing business after leaving the company. These clauses are viewed critically under Swedish law and must be reasonable to be enforceable. Reasonableness is assessed based on:
- Scope: The type of business activities restricted.
- Duration: The length of time the restriction applies (typically limited, often 6-12 months).
- Geographical Area: The region covered by the restriction.
Furthermore, if a non-compete clause significantly restricts an employee's ability to find suitable alternative employment, the employer may be required to provide the employee with reasonable financial compensation for the duration of the restriction. Clauses that are deemed unreasonable in scope or duration may be modified or invalidated by a court.
Contract Modification and Termination Requirements
Modifying an existing employment contract generally requires the mutual agreement of both the employer and the employee. Unilateral changes by the employer to fundamental terms of employment can be considered a form of dismissal, potentially requiring adherence to termination procedures.
Termination of employment in Sweden depends on the type of contract:
- Fixed-Term Contracts: These contracts automatically terminate at the agreed-upon end date without the need for notice, unless otherwise specified in the contract or a collective agreement.
- Indefinite Contracts: Termination by the employer requires just cause (saklig grund). Just cause can be based on:
- Employee Conduct: Serious breaches of contract or misconduct (dismissal for cause - avskedande, for very serious breaches, or termination due to personal reasons - uppsägning på grund av personliga skäl).
- Redundancy: Lack of work or reorganization within the company (termination due to redundancy - uppsägning på grund av arbetsbrist).
Notice periods apply when terminating indefinite contracts, varying based on the employee's length of service, ranging from one month (for less than two years of service) up to six months (for ten or more years of service). Specific rules and procedures, including negotiations with trade unions if applicable, must be followed during the termination process to ensure compliance with the Employment Protection Act.
