As we reported here, a year ago, the Swedish Minister of Labour presented to the Parliament/Government a proposal to reform the Swedish labour law, aiming to adapt the legislation to the changing needs of the labour market. 

The new amendments have been negotiated and agreed upon by the Swedish employer federations on the one hand and the trade unions on the other and then adopted as part of the legislative process.

The main changes, that make the Act more flexible yet more predictable for both employers and employees, are the following:

· Objective reasons instead of objective grounds for terminations

· Extended exemption from the seniority rules

· General fixed-term employment is replaced by special fixed-term employment

· Full-time employment as the norm

· Changes in dispute regulation in case of termination of employment. 

Moreover, as we previously wrote about other European countries, changes to the EPA were made to be compliant with the EU directive on transparent and predictable working conditions, expanding existing provisions on what written information an employer is obliged to provide employees when employment begins.

Lastly, another EU Directive on Work-Life Balance for Parents and Carers has been implemented. The changes entered into force on 2 August 2022 and aim to create a more flexible working life for parents and employees who takes care of sick family member.

All those significant changes to Sweden’s employment laws are causing concern among employers, especially on the obligation to offer temporary agency workers permanent employment once those workers have been in the same workplace for 24 months over three years and the reduction from 24 to 12 months as a maximum time for fixed-term employment.

The amendments also apply to employers not subject to collective bargaining agreements and employers not subject to collective bargaining agreements that were not part of the negotiations between employer organisations and trade unions.

Employers should review their employment agreements for both permanent and fixed-term employees and verify their compliance with the new legislation.