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Employment contracts and policies in Sweden
Contract terms in Sweden
Fixed-term contracts in Sweden
Contract extension in Sweden
Working hours in Sweden
Remote work in Sweden
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In most countries, it’s standard for employers and employees to formalise their relationship by signing an employment contract. This important document outlines the most important terms and conditions of the employment relationship, ensuring that both parties understand their rights and obligations.
Each country has specific rules and regulations that employers must follow when it comes to employment contracts. For example, employment contracts in Sweden can theoretically be agreed verbally with no written agreement. However, there are certain key terms and conditions that employers in Sweden are required to provide in writing. In practice, this means that most employers provide their employees with an employment contract at the beginning of their relationship.
The standard employment contract in Sweden is permanent, with fixed-term employment allowed only under certain conditions. Other types of employment contracts in Sweden include seasonal and substitute contracts.
As in all countries, there are specific rules that employers need to know about when it comes to employing workers in Sweden. In this section, we’ll take you through the basics of employment contracts in Sweden, including the rules about fixed-term contracts and extensions, working hours, and mandatory contract terms.
An employment contract is simply an agreement between an employer and an employee. In Sweden, these don’t always have to be in writing, but it’s still best practice to provide a written employment contract to your Swedish employees. In many cases, collective bargaining agreements provide a framework for employment contracts and set the terms and conditions that must be included.
While employment contracts in Sweden can theoretically be verbally agreed, employers do have to provide certain information in writing thanks to Sweden’s implementation of the EU Directive on Transparent and Predictable Working Conditions. Under these rules, which came into force in 2019, employers must provide employees with a written statement of their main terms and conditions of employment. This written statement must include the name and address of both parties, the agreed salary, and a job description, as well as other key terms.
Including a probationary period in employment contracts is a standard practice in Sweden, allowing employers to confirm that an employee is a good fit for the position. Probationary periods can last a maximum of six months, and the terms must be agreed in writing. During the probationary period, employees are entitled to the same pay and conditions as other employees doing similar work.
In Sweden, it’s generally not mandatory for employers to have written policies, though it is both advised and common. However, there are some exceptions. For example, employers with at least 10 employees must put in place a written work environment policy. Employers with at least 25 employees need to put together additional documentation related to discrimination and equality, and those with more than 50 employees must have a whistleblowing policy in place.
Although they’re not mandatory, it’s also fairly common for employers in Sweden to have policies on things like:
As in many countries, there are set rules determining the terms that must appear in work contracts in Sweden, which are set by the Employment Protection Act. Collective agreements may also provide additional requirements.
Although employment contracts can technically be agreed verbally in Sweden, employers do have to provide certain terms in writing, which effectively functions as a written employment contract. The mandatory terms that must be included are:
Employers in Sweden can also choose to include other terms in their contracts, as long as they’re compliant with the Employment Protection Act and any collective agreement that applies. For example, you could choose to include a more detailed description of the employee’s duties.
Other possible terms to incorporate include:
The majority of employees in Sweden are covered by a collective bargaining agreement, which may set specific requirements that the employment contract must meet. For example, collective agreements set minimum wages, as well as minimum conditions for notice periods, severance pay, probationary periods, and more. Employers in Sweden are obliged to adhere to collective bargaining agreements for all employees they apply to, whether or not they are union members.
As in many other Scandinavian countries, the standard rule in Sweden is that employment should be permanent. Employers are only allowed to deviate from this in certain specific circumstances, which are set out in the Employment Protection Act. According to this legislation, there are three forms of fixed-term contract in Sweden:
This type of fixed-term employment can be used to hire an employee for work which is temporary in nature, such as to work on a time-limited project. No special conditions need to be met to use this type of contract, but they can only be used for a maximum of 12 months within a five-year period. If an employee is employed on a fixed-term contract in Sweden for longer than this, their position automatically becomes permanent.
This type of fixed-term employment is used when one employee is temporarily replacing someone else who has taken temporary leave from work, for example on parental leave or sick leave. It’s also possible to hire a substitute when an employee leaves or retires, but only for the length of time it would usually take to recruit a new employee. Employees can only be hired on this type of fixed-term contract in Sweden for a maximum of two years during any five-year period.
A seasonal contract is another type of fixed-term contract in Sweden. These can only be used for work that can only be carried out at certain times of the year. Examples of seasonal work might include:
With this type of employment, the employee’s contract simply ends when the season ends.
As of January 2023, the introduction of a new law means that employees aged over 69 in Sweden can be hired on fixed-term contracts that don’t automatically become permanent after the usual period is reached. This means they can effectively be hired indefinitely on a fixed-term contract.
Fixed-term contracts are subject to restrictions in Sweden. For general fixed-term contracts, employees can’t be hired for more than one year in a five-year period, or their contract automatically becomes permanent. Employers can choose to renew (or extend) an employee’s fixed-term contract as long as the total length doesn’t exceed this limit.
There are different rules for seasonal contracts, which can be renewed each year for the new season. If an employee has been employed on seasonal contracts for more than six months within a two-year period, they have a preferential right to reemployment the next season. If the employer is not able to offer them reemployment, they must give the employee written notice at least one month before the start of the season.
Sweden is known for its strong worker protections and laws that protect employees’ work-life balance, which include strict rules about the maximum hours an employee can work. These are regulated by the Working Hours Act.
The standard working week in Sweden is Monday-Friday and full-time employees typically work 40 hours per week over five days. Any hours worked over this limit are considered overtime and must be compensated. Employees can’t work more than an average of 48 hours per week (including overtime) when calculated over a reference period of four months.
The rules about overtime and working hours in Sweden are set by the Working Hours Act, which mandates that employees can’t be made to work more than 50 hours of overtime in a single month, or more than 200 hours in a year. Any hours worked above the normal working week of 40 hours are considered overtime and must be paid. The only exceptions are managers and other employers who organise their own work schedules, who are not entitled to overtime pay.
Collective agreements often provide even more generous conditions related to overtime, with most setting an annual limit of 150 hours. Overtime rates are not set by the Working Hours Act, but by collective agreements. There are usually higher rates for any hours worked after 8 pm or on weekends.
The rules about working hours in Sweden also include provisions for breaks and rest periods between shifts. Employees are generally entitled to a break after five hours of work and must have a rest period of at least 11 hours between shifts. They also have the right to at least 36 consecutive hours of weekly rest. This is usually at the weekend, though it doesn’t have to be. Employees in Sweden can’t work more than six days in a row without a day off.
There’s no specific legal limit on student working hours in Sweden. However, students are expected to spend a significant amount of their time attending classes, reading, and studying, so it’s advisable to keep part-time work to a minimum. Foreign students in Sweden on a student visa are allowed to work alongside their studies, as long as they keep studying and don’t reduce their study hours to work.
Around the world, many countries have seen an increase in remote work since the COVID-19 pandemic, which began in 2020. In Sweden, a 2023 survey found that almost 44% of employees worked from home. This figure, which is well above the EU average of 21.3%, has increased steadily since 2011.
However, unlike in other countries, there are currently no specific laws related to remote work on the books in Sweden. All employment laws apply whether employees work remotely or onsite, meaning that remote employees can still benefit from the various employee protections provided by Swedish employment law.
The global rise in remote work has led many countries to introduce remote work visas (or digital nomad visas), which allow employees to work remotely from the country for a certain period, without being subject to the usual tax and immigration requirements. However, there is currently no such visa in Sweden, and the government hasn’t announced plans to introduce one.
Workers from the EU or European Economic Area (EEA) may be able to work remotely in Sweden without a visa, but they must register as residents if they stay for more than three months. They also have to contact the Swedish Tax Agency and may be liable for income tax in Sweden.
Like all countries, Sweden has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water. Thankfully, our team is experienced in drawing up tailored, compliant contracts in Sweden (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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