New Rules Limit the Right to Take Industrial Actions

New Legislation Enacted

Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB

On June 18, 2019, the Parliament passed a bill to expand the peace obligation in workplaces with a collective bargaining agreement in place and in disputes, through amendments to the Employment (Co-Determination in the Workplace) Act (1976:580). In order for an employee to participate in an industrial action against an employer who is bound to a CBA, the purpose must be to achieve a CBA and the trade union must have negotiated its demands with the employer. Further, it will not be allowed for an employer or an employee to take industrial actions to exert pressure in a dispute. The new rules will enter into force on August 1, 2019.

Employment Protection Extended to the Age of 69

New Legislation Enacted

Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB

On June 18, 2019, Parliament amended the Employment Protection Act, to extend employment protection from termination without just cause, until the employee reaches the age of 69. Currently, employees have a right to remain in their employment until they age of 67. With these amendments, once the employee reaches the age of 69, an employer may terminate without just cause through a simplified termination procedure. Other rules under the act, such as notice periods and priority right to re-employment, will also be affected by the new age limit. The new rules will enter into force gradually: on January 1, 2020, the new age limit will be 68 years, and on January 1, 2023, the age limit will be 69 years.

Reduction of Employer’s Contributions for Persons under 18 Years Old

New Legislation Enacted

Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB

On June 18, 2019, Parliament passed a bill on reduced employer’s contributions for persons under the age of 18. According to the new rules, the employer’s contributions shall be 10.21 per cent for employees who are 15-17 years of age with a maximum salary of SEK 25,000 per month. The aim is to provide opportunities for young people to receive summer jobs and part-time jobs during their studies so that they get work experience and become attractive for future employers. The new rules will enter into force on August 1, 2019 and shall apply to all remuneration paid after July 31, 2019.

Special Investigator Appointed to Review the Swedish Labor Law

Proposed Bill or Initiative

Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB

The Government appointed a special investigator to analyze the modernization of the Swedish labor law and present a report by May 31, 2020. The investigator must prepare legislative proposals on extended exemptions from the rules on the order of priority; the employers’ responsibility for competence development and employee adaptability; lower termination costs; and consider legislative proposals to create a better balance in the employment protection for employees with different employment conditions. The inquiry and its given directives are based on the January Agreement, a political agreement between the Social Democrats, the Centre Party, the Liberals and the Green Party. According to the January agreement, amendments to the Employment Protection Act shall be implemented by 2021.