How layoffs are handled in Sweden is regulated by several labor laws. When someone is going to be terminated or dismissed, the employer must notify the union. The role and influence of the unions in layoffs are significant as they protect the rights and interests of the employees.
The labor union is an important partner that provides advice and helps you negotiate in case of termination or dismissal. In case of layoffs due to shortage of work, the employer must notify the union several months in advance, depending on the number of employees being laid off. In case of termination for personal reasons or dismissal, the union must be notified at the same time as you. The union must also be notified in case of terminated probationary employment or non-renewed fixed-term employment.
In case of termination for personal reasons, dismissal, non-renewed fixed-term employment, or terminated probationary employment, the union and the employee have the right to negotiate with the employer if requested, to discuss the reasons for termination and the possibility of continuing the employment.
In case of shortage of work, the union, with which the employer has a collective agreement, will receive information about the layoffs in advance. The union can then discuss the downsizing, options for redeployment, and the order of layoffs with the employer. Individual termination or dismissal notices can only be given after the negotiations have concluded. If the employer does not have a collective agreement, there is no obligation to negotiate.
If you, as an employer, want or need to terminate an employee, you must notify the union that you or the employee are affiliated with. In case of termination for personal reasons, non-renewed fixed-term employment, or terminated probationary employment, the employee and their union must be informed at least two weeks in advance, and in case of dismissal, one week in advance. In case of shortage of work, the union must be notified at least two months in advance, and if at least five employees are affected, the Swedish Public Employment Service must also be notified.
In case of termination for personal reasons, dismissal, non-renewed fixed-term employment, or terminated probationary employment, you have an obligation to negotiate with the union and the employee if they request it, and explain the reasons for the termination.
In case of shortage of work, as an employer with a collective agreement, you have an obligation to negotiate with the union. You can discuss reorganization, redeployment, and the order of layoffs. Individual termination or dismissal notices can only be given after the negotiations have concluded. If you are not bound by a collective agreement, there is no obligation to negotiate.
