Sweden

When a person voluntarily has agreed to work for someone else an employment is at hand. The Swedish Employment Act has no specific definition thereof.

2. How do you define an employment contract?

An employment contract can be oral or in writing. However, according to Article 6a of The Swedish Employment Act the employer has an obligation to inform the employee in writing of the terms of the employment within a month. The information shall contain the following:

Name and address of each party.

The date when the employment starts.

The place of work, specifics regarding the work to be done and the title of the job.

What kind of employment in question i.e. full-time, part time, temporary employment etc.

The salary, vacation and working hours.

If any union agreement is applicable.

If it is an employment abroad, specifics regarding the length thereof, in what currency the salary is paid and eventual benefits.

3. What does an employment contract need to contain?

See the above (1 – 2). However, it has no effect on the agreement if the employer fails to inform the employee, thus the employment is still binding.

4. Is there a legal requirement to provide an employee with a written contract and if so, when does this have to be provided

No, see the above (1 – 2).

5. How would you define a redundancy/economic dismissal?

Article 7 of The Swedish Employment Act defines it as lack of work, of the employer’s choice. The employer makes all business decisions, including decisions and estimations regarding needed employment and usually, the employers’ estimation is taken for granted by the courts. However, the employer can be made to prove that the employer needs to make dismissals due to lack of work if there is suspicion of misuse.

6. What is the procedure that an employer must follow when making an employee redundant/or dismissing on economic grounds?

The employer is to consider alternative employment. If no other employment can be offered there are justified grounds for notice to terminate the employment. The notice must be in writing and contain terms to be upheld by the employee if he wants to dispute the notice or claim damages. Furthermore the notice shall inform the employee that he has right to reemployment and the terms thereof. The notice shall be handed over to the employee in person.

The employer has an obligation to inform and in some cases negotiate with the local union before taking any actions.

7. Do you have laws against discrimination, if so, what types of discrimination do you have and how are the defined?

Sweden has several laws against discrimination. It is forbidden to discriminate due to ethnic origin, religion, sexual preferences or disabilities; mental or physical. Further-more discrimination is forbidden due to gender or if a person does not work full time. The latter means that an employer may not give worse terms as to salary or other employment benefits to an employee just because the employee is working part time, unless an obvious reason.

8. Do you recognise harassment and again, how is this defined?

All Discrimination Acts recognise and forbids harassment, which in general is defined as any special treatment or lack of treatment due to any ground for discrimination mentioned above.

9. What can an employee do about discrimination?

A discriminating agreement is invalid and can the employee sue for damages. If the harassment is made by another employee, the employer has an obligation to investigate and prevent harassment.

10. What is an unfair dismissal?

Due to article 7 in The Swedish Employment Act a dismissal without due cause is unfair.

11. What can an employee do about an unfair dismissal?

Due to article 40 in the Swedish Employment Act an employee who finds a dismissal unfair and wants to keep his employment, is to give the employer notice thereof within two weeks and start legal proceedings within two weeks after the notice period. How-ever, the employee can choose to only demand damages, article 41 in the Swedish Employment Act. If so, the employee is to give notice to the employer within four months and start legal proceedings against the employer within four months after the notice period.

12. If a dismissal is found to be unfair, what compensation can the employee obtain?

The employee will keep the employment and be paid damages, if the notice period above is observed. Damages are paid for lack of salary, costs and the violation itself. The latter can be as much as SEK 100 000 due to the circumstances.

13. Do you have a collective/trade union law?

Yes, the law concerning right of participation in decision-making.

14. If so, what rights does an employee have?

An employee has the right to be a member. The union itself has the right to be in-formed as well as be part of an employers’ decision making.

15. Does the employer have to accept collective/trade union law?

Yes.

16. Can any individual from another country come and work in your country?

Yes.

17. If so, is there immigration controls/work permits that need to be applied for?

Sweden’s being a member of the EU enables citizens of EU nation to take jobs and re-side in Sweden without restrictions. The same applies to the three nations in the EEA. However, EU and EEA citizens must after three months obtain a residence permit, which will formally record the individuals for tax and social benefit purposes.

Citizens of other countries must apply for a residence and work permit at a Swedish embassy or consulate at least six weeks before estimated date of arrival in Sweden.

Exception: A specialist employed by an international concern and travelling to and from Sweden in that capacity in order to work for temporary period (less than twelve months) does not require a work permit.

18. What criteria are used for any such applications?

An employee must have guarantees of work from an employer, guarantees of mini-mum wages and housing provisions.

19. What does an employer have to do if he receives an application from someone who is not a national in your country for a job?

The employer is obliged to guarantee work and minimum wages if the employer wants to employ the applicant.

20. What is the tax position for a foreign employee?

A foreign employee is entitled to the same social and welfare benefits as a Swedish citizen and therefore subject to the same taxes. However, recent legislation has reduced taxes for foreign specialists for a period of up to three years.

21. Are employees protected in the event of a sale or a purchase of a business?

Yes, according to article 6 b the Swedish Employment Act.

22. If so, what rights do employees have and what can they do about it?

Employees have the right to remain employed if the employee wishes and accordingly, the new owner takes over all rights and obligations due to employment agreements valid at the date of transfer.

23. What does the employer have to do in the event of a sale or a purchase of business, which includes employees?

According to articles 11 and 13 of the law concerning right of participation in decision making, the employer must negotiate with the union.

24. What is the position regarding agents in your country, briefly outline how agents are dealt with and what documentation is required.

Sweden has implemented the EU directive concerning agents. Any terms in an agreement less favourable to the agent than stated by law are invalid. The agent has the right to commissions during, and for some time after, the duration of an agency agreement. The agent also has the right severance payment in some specific cases. A non-competition clause is only valid if made in writing. The non-competition clause must concern the same territory the agent has had or clients of the agent. Furthermore, the non-competition clause must concern the same goods as the agency and is only valid for a maximum of two years after the agency agreement is terminated.