Employment termination in
Sweden.

Q: Is it difficult to terminate employment in Sweden?

Terminating employment in Sweden is considered difficult . To mitigate the risk of a mis-hiring, it is advised that employers offer employment through a fixed-term contract; fixed-term contracts usually end after 2 years, and give the employer (and employee) an opportunity to choose whether to extend for another 2 years. Note that while there is no state-madated severance pay in Sweden, there may be severance pay required by the employment contract or collective bargaining agreement. In cases of termination, it may be in the company’s best interest to pay severance regardless of what the laws and practices are in the hiring location.

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

Valid reasons to terminate employment in Sweden

There are various reasons for terminating employment in Sweden. Valid reasons for dismissal are:

Objective reasons/reasonable grounds – Relating to personal reasons such as lack of competence, misconduct, co-operation problems, harassment, refusal to work, criminal offenses, and so on. There must be no possibility of placing an employee in another role.
Shortage of work

Unfair reasons to terminate employment in Sweden

Unfair reasons for terminating employment in Sweden are classed as anything that lacks an ‘objective reason’. For example, termination due to sickness, old age, race, gender, and so on would be classed as unfair dismissal.

Dismissal procedure in Sweden

There is a specific procedure that most employers must follow when dismissing employees in Sweden:

Notice letter sent via courier including signature upon receipt
- The notice letter must specify how the employee may contest the termination
- The notice letter is sent to the employee and the trade union if the employee is a union member
Payment of (where applicable) unused accrued leave, bonus, payment in lieu of notice, and severance

Resignation procedure in Sweden

Resignation does not require a reason, but employees must provide the appropriate notice according to the law:

In probation period → min. 14 days
0 to 2 years employment → min. 1 month
2 to 4 years employment → min. 2 months
4 to 6 years employment → min. 3 months
6 to 8 years employment → min. 4 months
8 to 10 years employment → min. 5 months
above 10 years employment → min. 6 months
OR: Immediate termination = Payment in-lieu of notice

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Your business can easily hire employees in Sweden without opening a local entity.

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FAQs

Is it difficult to terminate employment in Sweden?

Terminating employment in Sweden is considered difficult. To mitigate the risk of a mis-hiring, it is advised that employers offer employment through a fixed-term contract; fixed-term contracts usually end after 2 years, and give the employer (and employee) an opportunity to choose whether to extend for another 2 years.

Note that while there is no state-madated severance pay in Sweden, there may be severance pay required by the employment contract or collective bargaining agreement. In cases of termination, it may be in the company’s best interest to pay severance regardless of what the laws and practices are in the hiring location.

What are the risks of terminating employment in Sweden, and how do I mitigate them?

Terminating employment in Sweden comes with risks, just like anywhere else. The risks of terminating employment in Sweden include the following, if the termination is found to be unlawful:

Employee may be entitled to continued salary payments while the case is in-process with the labor bureau
Employee may be entitled to additional compensation, including for financial loss and non-material injuries suffered
Employee may be entitled to “redistribution” i.e. to have their job reinstated or to be offered another role at the company.

Your best chance of mitigating employment termination is to work with a local expert on employment law, such as a professional employer organization (PEO), employer of record (EOR), or a local Swedish law firm specializing in employment law, before the termination procedure begins. If you hired your employee through a partner, they should be able to advise you on best practices in Sweden or your other countries of hire.

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Employment termination in
Sweden.

Valid reasons to terminate employment in Sweden

Unfair reasons to terminate employment in Sweden

Dismissal procedure in Sweden

Resignation procedure in Sweden

Hiring in Sweden, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Employment termination in Sweden.

Valid reasons to terminate employment in Sweden

Unfair reasons to terminate employment in Sweden

Dismissal procedure in Sweden

Resignation procedure in Sweden

Hiring in Sweden, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Employment termination in
Sweden.