Sweden employment compliance in 2026

Sweden's Employment Protection Act (LAS, SFS 1982:80) presumes all employment is permanent and protected. An employee can challenge any dismissal as unlawful from the moment employment begins.

Two grounds for dismissal

• Shortage of work (brist pa arbetsuppgifter). This covers genuine redundancy and operational changes. You must follow a seniority order (last in, first out), consult the union (if recognised), and give proper statutory notice.
• Personal reasons (personliga skal). This covers misconduct, poor performance, or a fundamental breakdown of trust. The 2022 LAS reform made personal-reasons dismissals more specific. You need documented warnings and a chance for the employee to respond.

The compensation exposure

If a dismissal is found unlawful, the court can order reinstatement or compensation. For an employee with ten or more years of service, the maximum compensation is 32 months of monthly salary. For shorter-tenure employees, the cap is lower. Punitive damages (allmantt skadestand) are also possible on top of the compensation figure.

No statutory severance

Sweden has no statutory severance pay formula. Severance is a matter for collective agreements or individual negotiation. The employer's obligation on termination is to give proper notice and pay salary through the notice period.

The seven protected grounds under the Swedish Discrimination Act:

• Sex
• Transgender identity or expression
• Ethnicity
• Religion or other belief
• Disability
• Sexual orientation
• Age

Why discrimination claims are serious

• No qualifying period. Protection applies from the job advert stage, through the hiring process, and into employment.
• No compensation cap. Discrimination compensation is uncapped. It covers economic loss and injury to dignity.
• Reversed burden of proof. Once an employee shows facts that suggest discrimination, the employer must prove a non-discriminatory reason.
• Active duties on employers. Swedish law requires employers to take active measures to prevent and counteract discrimination. This is not just a reactive obligation.

Sweden also requires pay surveys every three years for employers with ten or more employees, checking for unjustified pay differences between men and women doing equal or equivalent work. The Equality Ombudsman can enforce this.

Every recruitment, performance management, and dismissal process needs to be auditable against the seven protected grounds. Teamed's standard procedures build this in from day one.

The Swedish Whistleblower Protection Act covers reporting of:

• Breaches of EU law in the areas listed in the Directive (financial services, product safety, environmental protection, food safety, public health, anti-money laundering, and more)
• Other serious violations of Swedish law
• Actions that seriously harm the public interest

Employer obligations

• Internal reporting channel. Employers with 50 or more employees must set up an internal reporting channel and process. Reports must be acknowledged within 7 days and followed up within 3 months.
• External channels. The employee can go directly to a supervisory authority or, in serious cases, to the public.
• Prohibition on retaliation. Dismissal, demotion, changed duties, or any other detriment against a whistleblower is unlawful. Compensation for retaliation is uncapped.

Sweden also has a tradition of strong freedom of information rights. Employees in certain sectors (especially public sector adjacent) may have additional disclosure rights under constitutional press freedom rules (meddelarfrihet). This can apply even in private employment where the work touches public services.

Practical implications for employers in Sweden:

• Privacy notice. Issued at recruitment and on hire, explaining what employee data is processed and for what purpose.
• Lawful basis. Documented for each processing purpose. Contract performance and legitimate interest cover most standard employment data. Sensitive data (health, union membership, biometrics) needs explicit consent or another specific exemption.
• Subject access requests (SARs). Employees can request a copy of their personal data. Free to make, and must be answered within 1 month (extendable to 3 months for large or detailed requests).
• Data breaches. Must be reported to IMY within 72 hours if likely to result in risk to individuals. Internal documentation required for all breaches, even those not reported to IMY.
• International transfers. Transfers of employee data outside the EU/EEA require an adequacy decision, standard contractual clauses (SCCs), or another approved safeguard.

For US-headquartered businesses hiring through Teamed in Sweden: employee data flowing from Sweden to the US parent requires SCCs or another safeguard. Teamed handles the data processing agreement. Sweden's IMY has historically been an active enforcer and one of the earlier national DPAs to issue GDPR fines.

Three frameworks that shape every Swedish employment relationship:

• Co-Determination Act (Medbestammandelagen, MBL 1976:580). Employers must negotiate with recognised unions before major decisions affecting employees. This includes redundancies, restructuring, significant changes to working conditions, and outsourcing. Failure to consult is a breach with real consequences.
• Collective agreements (kollektivavtal). Around 90 percent of Swedish workers are covered by a collective agreement, even if they are not union members, because the agreement is binding on the employer. These agreements often give better terms than the statutory minimum on notice, sick pay supplements, additional pension, and working hours.
• Priority rights (Turordning). In redundancy situations, LAS requires a seniority-based order for who is selected. Collective agreements can modify this, but the default is last in, first out within each role category.

Collective redundancy notification

When you make 5 or more employees redundant in Sweden, you must notify Arbetsformedlingen (the Swedish Public Employment Service). The notice period depends on the number of employees affected. For redundancies affecting fewer than 25 employees, you must give 60 days notice. For redundancies affecting 100 or more employees, the notice rises to 180 days. The counting window for this trigger is 90 days.

EOR switching in Sweden

Changing EOR provider in Sweden is not free. Swedish law includes protections equivalent to the EU Acquired Rights Directive. Employees typically transfer with their existing terms and continuity of employment. Pre-move union consultation is required where a recognised union has co-determination rights. Most EOR-to-EOR transitions in Sweden are handled by mutual agreement, but the legal framework applies regardless.

Real HR and legal experts handle your Sweden hires, from the first offer letter through monthly Arbetsgivardeklaration submissions and union consultation requirements. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.

Most businesses hiring in Sweden start with one or two people and graduate to a full team. The Sweden compliance setup works at any size, from a single hire to a full subsidiary transition, and Teamed stays as the EOR until it isn't the right structure anymore. LAS protections, the 2022 reform requirements, and Arbetsformedlingen notification rules are all baked into the onboarding flow. Start from the Sweden hiring overview. Each child guide covers one layer of Swedish employment law.

Key sources: Arbetsformedlingen redundancy notification rules, L&E Global Sweden employment law overview, and Forsakringskassan sick pay rules.

1. Check collective agreement coverage

   Establish whether a sector collective agreement covers the role. Most Swedish roles fall under an agreement even without formal union recognition.

2. Issue a written employment contract

   Sweden requires a written statement of employment terms. Include notice periods, probation terms, and any collective agreement reference.

3. Register for sick pay obligations

   The employer pays sick pay from day two for up to the statutory employer responsibility period. Register correctly with Skatteverket before the first hire.

4. Set up the Arbetsgivardeklaration cycle

   Monthly employer declarations must be filed with Skatteverket. Late filing triggers penalty interest.

5. Plan the union consultation calendar

   Any restructuring, redundancy, or significant change requires advance union consultation. Start the clock early to meet the statutory notice requirements.