Sweden Employment Guide

Navigating Employment Termination in Sweden: A Guide for International Employers

Terminating an employment contract in Sweden requires careful adherence to a complex legal framework. The process must be managed collaboratively with key stakeholders, and employers should be prepared for potential interim costs and mandatory procedural steps in specific cases.

Unlike in some jurisdictions, Sweden does not recognize 'at-will' employment. Termination can be initiated by the employer, the employee, or by mutual agreement. In all instances, providing proper notice is a fundamental legal requirement.

Legally Compliant Grounds for Termination

To ensure compliance, terminations must fall under one of the following categories:

• Voluntary resignation by the employee.
• Termination by mutual consent.
• Expiration of a fixed-term contract.
• Unilateral termination by the employer, justified by:
  • Dismissal during a probationary period.
  • Objective grounds, such as redundancy.
  • Performance issues related to a lack of suitability for the role.
  • Gross misconduct or negligence.
  • Substantial collaboration difficulties.
  • An employee's refusal to perform work duties.

Understanding the Statutory Notice Periods

The minimum notice period is one month, but it increases progressively with an employee's tenure:

Severance Pay and Final Compensation

It is important to note that Swedish law does not mandate statutory severance pay. Employees are entitled to receive their regular salary throughout the notice period. However, collective bargaining agreements may sometimes stipulate additional benefits. For example, a global company like SailGlobal often supplements the legal minimum with enhanced severance packages as part of its global mobility and talent retention strategy, demonstrating best practices in international HR management.