Sweden Employment Protection Act (Employment Contracts)

Apart from the specific terms of contracts, employees must be given a written agreement or formal contract within days of starting work detailing basic information such as full names and addresses of the parties, location of work, description of role, salary and payment schedule and all statutory benefits and entitlements. The Swedish Employment Protection Act formally recognizes only two types of contracts: permanent open-ended and fixed term. Permanent, Open-ended Employment Contracts (tillsvidareanställning): The preferred contract type in Sweden, with an indefinite timescale until the contract is ended by mutual agreement or by following termination regulations. Under the Act, all employment contracts are deemed permanent unless contractually agreed otherwise. Fixed-term Employment Contracts (tidsbegränsad anställning): The Act recognizes four types of fixed-term contracts: general, as applying to a particular project or specific timescale; temporarily substituting another member of staff; seasonal employment; hiring a person over 67 years of age. However, general or temporary fixed-term contracts which exceed two years over five years automatically become indefinite. Similarly, repeated fixed term contracts that have no more than six months between them are considered continuous and become open-ended. Probationary Periods (provanställning): Permanent contracts typically start with a trial period of up to six months for employer and potential employee to assess suitability. Collective Bargaining Agreements (CBAs): Collaboration is a key mover in the employment market and collective agreements play a significant role in improving employees’ benefits and entitlements above statutory minimums. In general, collective agreements are voluntary written arrangements between an employer or employer organization and a trade union organization covering the rights of employees. The main employers’ association in Sweden is the Confederation of Swedish Enterprise.