Sweden Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Employment Protection Act
  • Work Environment Act
  • Equality Act
• Legal Characteristics:
  • Strong emphasis on employee rights and protection
  • Promotes workplace equality and diversity
  • Imposes strict health and safety standards

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts (maximum 6 months)
• Contractual Terms:
  • Names and addresses of employer and employee
  • Start date of employment
  • Place of work
  • Job title and duties
  • Type of contract (indefinite or fixed-term)
  • Probationary period (if applicable)
  • Notice period for termination
  • Salary and other compensation components
  • Vacation allowance
  • Regular working hours
  • Applicable collective bargaining agreement
• Language and Currency:
  • Contracts must be in Swedish
  • Currency is Swedish Krona (SEK)

Working Time Regulations

• Standard Working Hours: 40 hours per week
• Rest Days and Breaks:
  • Minimum of 36 hours of rest every 7 days
  • Minimum of 11 hours of rest between shifts

Leave Policies

• Annual Leave: 25 days of paid annual leave per year
• Public Holidays: 13 national public holidays
• Special Leave:
  • Sick leave: 80% of salary paid by employer for first 14 days, then by social insurance
  • Maternity leave: 14 weeks for mothers, 7 weeks before and 7 weeks after birth
  • Paternity leave: 10 days of paid leave for fathers or other parents
  • Parental leave: 480 days of leave available to parents, can be shared between both parents

Employee Dismissal and Termination

• Notice Periods:
  • Employees on probation: 14 days
  • Other employees: 1-6 months, depending on length of service
• Severance Pay:
  • On completion of contract: None
  • On termination before contract end: 1-2 months' salary per year of service, depending on reason
• Unfair Dismissal Protection:
  • Employers must have valid grounds for dismissing employees
  • Employees have the right to appeal unfair dismissals

Taxation

• Personal Income Tax:

  • Salary Range (SEK)	State Income Tax (Rate)	Municipal Income Tax (Rate)
    0 - 613,900	0%	32%
    613,900 and above	20%	32%

• Social Security Contributions:

  • Employer: Approximately 30% of salary
  • Employee: None

Health Insurance

• Insurance Policy: Universal healthcare, funded by the government
• Coverage: Medical care, dental care, mental health services

Compensation and Benefits

• Minimum Wage: None
• Compensation Structure:
  • Salary
  • Allowances (e.g., transportation allowance, meal allowance)
  • Bonuses (often determined by collective bargaining agreements)

Work Permits and Visas

• Permit Requirements:
  • EU/EEA nationals: No work permit required
  • Non-EU/EEA nationals: Work permit required
• Application Process:
  • Employer applies to the Swedish Migration Agency on behalf of the employee
  • Processing time typically 2-4 months

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality clauses generally enforceable
  • Non-compete clauses enforceable to a limited extent, must be reasonable
• Common Provisions:
  • Confidentiality clauses: Prohibit employees from disclosing confidential information
  • Non-compete clauses: Restrict employees from working for competitors for a specified period

Training and Development

• Legal Requirements:
  • Employers must provide safety training and career development opportunities
• Government Support:
  • Government provides training grants and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Equality Act prohibits discrimination based on factors such as gender, race, religion
• Enforcement Measures:
  • Employers must implement policies and procedures to promote diversity and inclusion

Remote Work Policies

• Legal Framework:
  • Work Environment Act establishes rights and responsibilities for remote work
• Tax and Insurance Implications:
  • Remote work may impact tax and social insurance obligations

Authoritative Website Addresses

• Swedish Migration Agency: https://www.migrationsverket.se/
• Swedish Tax Agency: https://www.skatteverket.se/