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Employment contracts in
Sweden.

SALARY PAYMENT IN Swedish Krona (SEK, kr)

CONTRACT LANGUAGES Swedish / English

PAYROLL TAX 31.42%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Sweden

    Standard employment contract in Sweden: Open-ended contract

    Fixed-term (temporary) contracts are also common in Sweden. They can only be used for employment arrangements lasting up to two years, after which they must be renewed or switched to indefinite-term contracts. Labor laws are generally more flexible when hiring using fixed-term contracts.

    We strongly recommend using a fixed-term contract when hiring in Sweden to reduce costs and simplify the process of employment.

    Alternative employment contract in Sweden: Temporary contract

    Indefinite-term, or permanent contracts are used in Sweden for long-term employment. Labor laws are more strict when hiring employees on an indefinite-term contract. For example, notice periods for termination periods are long, so employment is generally more expensive and we recommend avoiding them where possible.

    Are there other types of employment contracts in Sweden?

    There are only two types of employment contracts in Sweden: indefinite and fixed-term

    1. Indefinite.

    Indefinite contracts, as defined above, are permanent. While it is risky to hire a new employee on an indefinite contract, a fixed-term contract will be automatically transformed to a permanent contact after 2 years of continuous employment with the same employer.

    2. Fixed-term.

    There are four kinds of fixed-term contracts:

    • general fixed term employment (Sw. allmän visstidsanställning);
    • temporary substitute employment (Sw. vikariat);
      seasonal employment (Sw. säsongsanställning); and
    • employment of an employee who has reached the age of 67.

    The general fixed-term contract is by far the most common of the above contracts.

    Hiring in Sweden, Made Easy

    Your business can easily hire employees in Sweden without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.

    FAQs

    Fixed-term contracts (standard) are generally more flexible and much more affordable in regards to employment termination. There is no probation period with fixed-term contracts.

    Open-ended contracts (alternative) are considered permanent contracts and termination can only occur in extremely specific circumstances. Open-ended contracts have a probation period with a maximum of 6 months; after the probation period, it becomes very complicated to terminate employment.

    In nearly all cases, the fixed-term contract is most suitable for hiring employees in Sweden.

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