In Sweden, the legal requirements for notice periods during employment termination are dictated by the Swedish Employment Protection Act (Lagen om anställningsskydd, LAS).

Minimum Notice Periods

The LAS establishes minimum notice periods depending on the employee's length of service:

• Less than Two Years: One month's notice for both employer and employee.
• Two to Four Years: Two months' notice.
• Additional Notice Periods: An additional month's notice is added every two years of employment, up to a maximum of six months' notice.

For instance, an employee who has been with the company for five years would require a five-month notice period (two months base + one month for years three and four + two months for year five).

Exceptions to Minimum Notice Periods

The minimum notice period can be altered in specific circumstances:

• Collective Agreements: Industry-specific collective bargaining agreements negotiated by employee unions and employer organizations may supersede the minimum notice periods outlined in the LAS. These agreements can establish shorter or longer notice periods depending on the sector and job role.
• Fixed-Term Contracts: For fixed-term contracts, the pre-determined end date of the contract usually serves as the termination date, unless otherwise agreed upon in the contract itself.

Important Considerations:

• Notice Period Start Date: The notice period typically begins on the first day of the following month after the notification is received.
• Obligations During Notice Period: Both employers and employees are generally obligated to fulfill their employment duties during the notice period. This includes the employee working as usual and the employer paying the agreed-upon salary and benefits.

In Sweden, there is no legal mandate for severance pay upon standard termination of employment. However, there are specific situations where employees may become eligible for severance payments.

Circumstances Where Severance Pay May Apply

• Collective Agreements: Many sectors and industries have collective agreements that include provisions for severance pay. These agreements often outline severance packages based on factors such as the employee's age, length of service, and circumstances surrounding the termination.
• Specific Termination Agreements: In situations of redundancy or downsizing, employers may offer severance packages as part of their restructuring plans or as part of a negotiated settlement with individual employees during the termination process.
• Unjustified Dismissal: A limited form of severance pay may be awarded by a labor court if they determine a dismissal to be without reasonable grounds. The amount is calculated based on factors such as the employee's length of service and age. However, this is not a guaranteed form of severance but rather compensation for damages associated with an unjustified termination.

Important Considerations

• No Statutory Right: There is no general legal requirement for employers in Sweden to provide severance pay upon standard job termination.
• Negotiation and Agreements: Severance pay entitlements under most circumstances arise from collective agreements, individual contracts, or negotiated termination settlements.

In Sweden, the termination of employment is primarily governed by the Employment Protection Act (Lagen om anställningsskydd, LAS). The termination process involves several legal considerations.

Types of Termination

There are two main types of termination:

• Resignation by Employee: Employees can resign from their positions by providing written notice in accordance with the LAS or other agreements in place.
• Dismissal by Employer: An employer can terminate employment for two main reasons:
  • Personal Reasons (Personliga skäl): These are grounds related to the employee's conduct, qualifications, or capabilities, such as misconduct, poor performance, or breach of contract. These reasons must be objectively justified according to the LAS.
  • Shortage of Work (Arbetsbrist): These are reasons due to economic circumstances, downsizing, or restructuring necessitating job reductions. The LAS outlines specific procedures for dismissals due to a shortage of work.

Termination Procedure

The termination procedure involves several steps:

1. Written Notice: All termination notices must be in writing, clearly stating the reason(s) for termination and the effective date. Notice periods must comply with LAS requirements or collective agreements.

2. Notice Prior to Dismissal (Personliga Skäl): If the grounds for dismissal are due to personal reasons, the employer must issue a warning to the employee and provide an opportunity for rectification before proceeding with the termination.

3. Consultation: In cases of dismissal due to shortage of work, LAS mandates consultations with relevant trade unions before issuing termination notices. There are also requirements for employers to negotiate the order of dismissals with unions.

4. Priority Rules (Arbetsbrist): When dismissing employees based on shortage of work, employers must adhere to priority rules outlined in the LAS. These rules favor employees with longer employment duration and consider factors such as skills and family support responsibilities.

5. Right to Challenge: An employee can challenge a dismissal in a labor court if they believe the termination lacked objective grounds, particularly in the case of personal reasons.

Key Points for Employers

Employers should keep in mind the following points:

• Documentation: Thoroughly document reasons for termination, particularly in cases related to employee conduct or performance.
• Objectivity: Ensure any termination decision related to personal reasons is based on valid and justifiable grounds, with warnings issued where applicable.
• Collective Agreements: Be aware of any requirements outlined in relevant collective agreements, as they may affect notice periods, consultation processes, and severance provisions.