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Employment contracts and policies in Sweden

Contract terms in Sweden

Fixed-term contracts in Sweden

Contract extension in Sweden

Working hours in Sweden

Remote work in Sweden

Tailored employment contracts in 100+ countries

Employment contracts in Sweden

In most countries, it’s standard for employers and employees to formalise their relationship by signing an employment contract. This important document outlines the most important terms and conditions of the employment relationship, ensuring that both parties understand their rights and obligations.

Each country has specific rules and regulations that employers must follow when it comes to employment contracts. For example, employment contracts in Sweden can theoretically be agreed verbally with no written agreement. However, there are certain key terms and conditions that employers in Sweden are required to provide in writing. In practice, this means that most employers provide their employees with an employment contract at the beginning of their relationship.

The standard employment contract in Sweden is permanent, with fixed-term employment allowed only under certain conditions. Other types of employment contracts in Sweden include seasonal and substitute contracts.

As in all countries, there are specific rules that employers need to know about when it comes to employing workers in Sweden. In this section, we’ll take you through the basics of employment contracts in Sweden, including the rules about fixed-term contracts and extensions, working hours, and mandatory contract terms.

Employment contracts and policies in Sweden

An employment contract is simply an agreement between an employer and an employee. In Sweden, these don’t always have to be in writing, but it’s still best practice to provide a written employment contract to your Swedish employees. In many cases, collective bargaining agreements provide a framework for employment contracts and set the terms and conditions that must be included.

Written employment contracts in Sweden

While employment contracts in Sweden can theoretically be verbally agreed, employers do have to provide certain information in writing thanks to Sweden’s implementation of the EU Directive on Transparent and Predictable Working Conditions. Under these rules, which came into force in 2019, employers must provide employees with a written statement of their main terms and conditions of employment. This written statement must include the name and address of both parties, the agreed salary, and a job description, as well as other key terms.

Probationary periods in Sweden

Including a probationary period in employment contracts is a standard practice in Sweden, allowing employers to confirm that an employee is a good fit for the position. Probationary periods can last a maximum of six months, and the terms must be agreed in writing. During the probationary period, employees are entitled to the same pay and conditions as other employees doing similar work.

Mandatory and optional employment policies in Sweden

In Sweden, it’s generally not mandatory for employers to have written policies, though it is both advised and common. However, there are some exceptions. For example, employers with at least 10 employees must put in place a written work environment policy. Employers with at least 25 employees need to put together additional documentation related to discrimination and equality, and those with more than 50 employees must have a whistleblowing policy in place.

Although they’re not mandatory, it’s also fairly common for employers in Sweden to have policies on things like:

Data protection
Benefits
Use of company equipment
Annual leave
Remote work

Contract terms in Sweden

As in many countries, there are set rules determining the terms that must appear in work contracts in Sweden, which are set by the Employment Protection Act. Collective agreements may also provide additional requirements.

Standard contract terms in Sweden

Although employment contracts can technically be agreed verbally in Sweden, employers do have to provide certain terms in writing, which effectively functions as a written employment contract. The mandatory terms that must be included are:

The name and address of both parties
The contract’s start date
The location where the work will be performed
The employee’s job duties, occupation, or job title
The type of employment (permanent or temporary)
The notice periods that apply
The end date of the contract if it is not permanent
The starting salary and other benefits
The payroll frequency
The length of a normal working day and week
The procedure for notifying the employee of their working and on-call hours
The conditions for accruing and using annual leave
Details about any training provided by the employer
The procedure for ending the contract
Whether the contract falls under a collective agreement (and which one)
Information about the employer’s social security contributions and the employee’s social protection

Other contract terms in Sweden

Employers in Sweden can also choose to include other terms in their contracts, as long as they’re compliant with the Employment Protection Act and any collective agreement that applies. For example, you could choose to include a more detailed description of the employee’s duties.

Other possible terms to incorporate include:

A duty of loyalty: This requires employees to put the employer’s interest before their own during their time at work.
A duty of confidentiality: This prohibits employees from disclosing information that could harm the employer, such as who the employer’s clients are or the production methods they use.
A non-compete clause: This prevents employees from working for or setting up businesses that compete with yours, either during or after their employment.

Collective bargaining agreements and employment contracts in Sweden

The majority of employees in Sweden are covered by a collective bargaining agreement, which may set specific requirements that the employment contract must meet. For example, collective agreements set minimum wages, as well as minimum conditions for notice periods, severance pay, probationary periods, and more. Employers in Sweden are obliged to adhere to collective bargaining agreements for all employees they apply to, whether or not they are union members.

Fixed-term contracts in Sweden

As in many other Scandinavian countries, the standard rule in Sweden is that employment should be permanent. Employers are only allowed to deviate from this in certain specific circumstances, which are set out in the Employment Protection Act. According to this legislation, there are three forms of fixed-term contract in Sweden:

General fixed-term employment
Substitute employment
Seasonal employment

General fixed-term employment in Sweden

This type of fixed-term employment can be used to hire an employee for work which is temporary in nature, such as to work on a time-limited project. No special conditions need to be met to use this type of contract, but they can only be used for a maximum of 12 months within a five-year period. If an employee is employed on a fixed-term contract in Sweden for longer than this, their position automatically becomes permanent.

Substitute employment in Sweden

This type of fixed-term employment is used when one employee is temporarily replacing someone else who has taken temporary leave from work, for example on parental leave or sick leave. It’s also possible to hire a substitute when an employee leaves or retires, but only for the length of time it would usually take to recruit a new employee. Employees can only be hired on this type of fixed-term contract in Sweden for a maximum of two years during any five-year period.

Seasonal employment in Sweden

A seasonal contract is another type of fixed-term contract in Sweden. These can only be used for work that can only be carried out at certain times of the year. Examples of seasonal work might include:

Snow clearing
Gardening and landscaping
Harvesting and berry picking
Tourism
Forestry

With this type of employment, the employee’s contract simply ends when the season ends.

Fixed-term employment for older employees

As of January 2023, the introduction of a new law means that employees aged over 69 in Sweden can be hired on fixed-term contracts that don’t automatically become permanent after the usual period is reached. This means they can effectively be hired indefinitely on a fixed-term contract.

Contract extension in Sweden

Fixed-term contracts are subject to restrictions in Sweden. For general fixed-term contracts, employees can’t be hired for more than one year in a five-year period, or their contract automatically becomes permanent. Employers can choose to renew (or extend) an employee’s fixed-term contract as long as the total length doesn’t exceed this limit.

There are different rules for seasonal contracts, which can be renewed each year for the new season. If an employee has been employed on seasonal contracts for more than six months within a two-year period, they have a preferential right to reemployment the next season. If the employer is not able to offer them reemployment, they must give the employee written notice at least one month before the start of the season.

Working hours in Sweden

Sweden is known for its strong worker protections and laws that protect employees’ work-life balance, which include strict rules about the maximum hours an employee can work. These are regulated by the Working Hours Act.

Maximum working hours per week in Sweden

The standard working week in Sweden is Monday-Friday and full-time employees typically work 40 hours per week over five days. Any hours worked over this limit are considered overtime and must be compensated. Employees can’t work more than an average of 48 hours per week (including overtime) when calculated over a reference period of four months.

Overtime in Sweden

The rules about overtime and working hours in Sweden are set by the Working Hours Act, which mandates that employees can’t be made to work more than 50 hours of overtime in a single month, or more than 200 hours in a year. Any hours worked above the normal working week of 40 hours are considered overtime and must be paid. The only exceptions are managers and other employers who organise their own work schedules, who are not entitled to overtime pay.

Collective agreements often provide even more generous conditions related to overtime, with most setting an annual limit of 150 hours. Overtime rates are not set by the Working Hours Act, but by collective agreements. There are usually higher rates for any hours worked after 8 pm or on weekends.

Work breaks and rest periods in Sweden

The rules about working hours in Sweden also include provisions for breaks and rest periods between shifts. Employees are generally entitled to a break after five hours of work and must have a rest period of at least 11 hours between shifts. They also have the right to at least 36 consecutive hours of weekly rest. This is usually at the weekend, though it doesn’t have to be. Employees in Sweden can’t work more than six days in a row without a day off.

How many hours can a student work in Sweden?

There’s no specific legal limit on student working hours in Sweden. However, students are expected to spend a significant amount of their time attending classes, reading, and studying, so it’s advisable to keep part-time work to a minimum. Foreign students in Sweden on a student visa are allowed to work alongside their studies, as long as they keep studying and don’t reduce their study hours to work.

Remote work in Sweden

Around the world, many countries have seen an increase in remote work since the COVID-19 pandemic, which began in 2020. In Sweden, a 2023 survey found that almost 44% of employees worked from home. This figure, which is well above the EU average of 21.3%, has increased steadily since 2011.

However, unlike in other countries, there are currently no specific laws related to remote work on the books in Sweden. All employment laws apply whether employees work remotely or onsite, meaning that remote employees can still benefit from the various employee protections provided by Swedish employment law.

Sweden remote work visa

The global rise in remote work has led many countries to introduce remote work visas (or digital nomad visas), which allow employees to work remotely from the country for a certain period, without being subject to the usual tax and immigration requirements. However, there is currently no such visa in Sweden, and the government hasn’t announced plans to introduce one.

Workers from the EU or European Economic Area (EEA) may be able to work remotely in Sweden without a visa, but they must register as residents if they stay for more than three months. They also have to contact the Swedish Tax Agency and may be liable for income tax in Sweden.

Tailored employment contracts in 100+ countries

Like all countries, Sweden has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water. Thankfully, our team is experienced in drawing up tailored, compliant contracts in Sweden (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.

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FAQ's

How do employment contracts work in Sweden?

Employment contracts in Sweden set out the terms and conditions of employment between an employer and an employee. They typically cover the employee’s role, salary, working hours, benefits, notice periods, workplace location, and other employment conditions.

Under Swedish law, permanent employment is the default form of employment unless another arrangement, such as a fixed term contract that is permitted under Swedish law, has been agreed. Employment contracts are also influenced by the Employment Protection Act (LAS) and any applicable collective bargaining agreement.

A written employment contract Sweden employers issue often includes more detail than the minimum information required by law. This helps employers document the agreed terms from the start of employment and align contractual terms with Swedish labour law requirements.

What governs employment contracts in Sweden?

Employment contracts Sweden employers are governed by:

The Employment Protection Act (LAS).

The Annual Leave Act.

The Working Hours Act.

The Discrimination Act.

Collective bargaining agreements where applicable.

Individual employment terms.

Collective agreements can significantly affect compensation, working hours, pensions, leave entitlements, and notice requirements, even when those terms are not fully detailed in the individual employment contract.

In summary, employment contracts in Sweden establish the legal terms of employment and are governed by Swedish labour laws, collective agreements, and the agreed terms between employer and employee.

Are written employment contracts required in Sweden?

No, Swedish law does not require every employment relationship to be established through a signed written contract. However, employers must provide employees with written information about the key terms and conditions of employment.

Most employers use a written employment contract in Sweden document because it is the simplest way to meet these information requirements and document the employment relationship.

The written information must generally include details such as the employer’s identity, job title, salary, working hours, employment type, and notice provisions. Additional information requirements apply under Sweden’s implementation of the EU Transparent and Predictable Working Conditions Directive.

What happens if there is no written contract in Sweden?

An employment relationship can still exist without a signed contract. Swedish courts may consider verbal agreements, workplace policies, email communications, actual working arrangements, and collective agreement provisions

This means employers cannot avoid employment obligations simply because a written contract has not been signed.

Employers cannot use an employment contract to provide conditions that are less favourable than mandatory legal requirements or applicable collective agreement provisions.

Why are employment contracts important in Sweden?

Employment contracts help define how statutory employment rights, collective agreement provisions, and company-specific terms apply to an individual employee. They also provide the framework for managing employment changes, promotions, salary reviews, leave entitlements, and termination procedures throughout the employment relationship.

For international employers, understanding how contracts interact with Swedish employment law is particularly important, as contract terms often work alongside statutory protections rather than replacing them.

In summary, Employment contracts in Sweden establish the terms of employment between an employer and employee, but they operate within a broader framework of labour laws and collective agreements. Permanent employment is the default arrangement, and employers must ensure contract terms comply with both statutory requirements and any applicable collective agreement obligations.

What types of employment contracts exist in Sweden?

The main types of employment contracts in Sweden are permanent employment contracts and fixed-term employment contracts. Under Swedish law, permanent employment is the default form of employment unless another arrangement has been specifically agreed.

When employers hire employees in Sweden, they must ensure the employment contract reflects the actual nature and duration of the work. The type of contract used can affect notice requirements, employment protections, and the employee’s long-term status.

Permanent employment contracts in Sweden

Permanent employment contracts have no predetermined end date and continue until the employee resigns or the employment relationship is terminated in accordance with Swedish employment law.

This is the most common type of employment contract Sweden employers use and is generally considered the standard form of employment under the Employment Protection Act (LAS).

Fixed-term employment contracts in Sweden

A fixed term contract Sweden employers use is intended for employment that lasts for a defined period or for a specific purpose. Under the Employment Protection Act (LAS), employers may use specific forms of fixed-term employment, including special fixed-term employment (särskild visstidsanställning), substitute employment, seasonal employment, and employment after the employee have reached the applicable retirement age. The contract may end on an agreed date, when a project is completed, or when a temporary business need no longer exists.

Fixed-term contracts are commonly used for:

Project-based work.

Temporary increases in workload.

Seasonal business requirements.

Covering employee absences.

Time-limited assignments.

Employers should carefully monitor the duration of fixed-term employment because certain fixed-term arrangements may automatically convert into permanent employment after statutory qualifying periods under LAS.

Substitute employment contracts in Sweden

Substitute employment is used when an employee is hired to replace another worker who is temporarily absent due to parental leave, sick leave, study leave, or other approved absences. The employment relationship is linked to the absence of the employee being replaced.

Seasonal employment contracts in Sweden

Seasonal employment may be used where the nature of the work can only be performed during a specific period of the year. This is most common in industries where demand fluctuates based on weather, tourism, or seasonal business activity.

Which contract type should employers in Sweden use?

The appropriate contract depends on the business need. Permanent contracts are generally used for ongoing roles, while fixed term and substitute contracts are typically used when the work is temporary or linked to a specific event, project, or employee absence.

Employers should ensure that the contract type accurately reflects the working arrangement and complies with Swedish employment regulations.

In summary,employment contracts in Sweden generally fall into two categories: permanent employment and fixed-term employment. Permanent employment is the default arrangement, while fixed-term, substitute, and seasonal contracts may be used in specific circumstances permitted under Swedish employment law.

What must be included in an employment contract in Sweden?

An employment contract in Sweden should include the key terms of employment, including the employee’s role, salary, working hours, employment type, workplace location, and notice conditions.

Employers are required to provide employees with written information covering important employment terms. Following Sweden’s implementation of the EU Transparent and Predictable Working Conditions Directive, employers must provide expanded written information regarding employment conditions within statutory deadlines.

While the exact contents may vary depending on the role, most employment contracts Sweden employers use contain a consistent set of core provisions.

Key information commonly included in an employment contract in Sweden

An employment contract in Sweden typically include:

Employer and employee details.

Job title and responsibilities.

Employment start date.

Permanent or fixed-term employment status.

Basic salary and payment schedule.

Working hours.

Place of work.

Vacation entitlement.

Pension and benefits information.

Notice periods.

Applicable collective bargaining agreement.

Some employers also include clauses relating to confidentiality, intellectual property, post-employment restrictions, remote work arrangements, and bonus eligibility. Employers should ensure that restrictive covenants, such as non-compete and non-solicitation clauses, are reasonable and enforceable under Swedish law.

Swedish employment laws require employers to communicate key employment terms to employees. Well-drafted contracts also help ensure employment terms align with statutory requirements and collective agreement obligations.

To summarise, an employment contract in Sweden should clearly document the employee’s role, compensation, working arrangements, employment type, notice conditions, and any applicable collective agreement provisions.

How do fixed-term contracts work in Sweden?

A fixed term contract in Sweden allows an employee to be hired for a limited period rather than on a permanent basis. The contract typically ends on an agreed date or when a specified project, assignment, or temporary business need has concluded.

Although permanent employment is the default employment model in Sweden, employers can use fixed-term contracts in situations permitted under Swedish employment law. Under the Employment Protection Act (LAS), employers may use specific categories of fixed-term employment, including special fixed-term employment (särskild visstidsanställning), substitute employment, seasonal employment, and employment after the employee have reached the applicable retirement age. Employers should ensure the chosen employment category is appropriate for the circumstances of the engagement.

Common reasons for using fixed-term contracts in Sweden include:

Temporary increases in workload.

Project-based work.

Seasonal business requirements.

Covering employee absences.

Time-limited operational needs.

Employers should monitor the duration and renewal of fixed-term employment arrangements because Swedish employment law contains rules that can convert certain temporary employment arrangements into permanent employment after specified periods. Employers should also be aware that employees engaged under qualifying fixed-term arrangements may acquire enhanced employment rights and priority rights to re-employment depending on their length of service.

What should employers in Sweden consider?

When using a fixed term contract in Sweden, employers should ensure:

The contract accurately reflects the business need.

Employment dates are clearly stated.

Contract renewals are tracked.

Collective agreement requirements are reviewed.

The specific legal basis for the fixed-term arrangement is identified and documented.

The duration of employment is monitored to assess whether conversion to permanent employment may be triggered under LAS.

Any priority rights to re-employment are assessed where applicable.

Employment terms comply with statutory requirements and any applicable collective bargaining agreement.

Fixed-term contracts in Sweden allow employers to hire employees for a defined period, but the use and duration of temporary employment arrangements are regulated under Swedish employment law. Improper use of fixed-term employment may expose employers to employment claims, conversion risks, and liability for non-compliance.

Can employers modify or terminate employment contracts in Sweden?

Yes, employment contracts in Sweden can be modified or terminated, but employers must comply with Swedish employment laws and any applicable collective bargaining agreements.

Changes to important employment terms such as salary, working hours, job responsibilities, or workplace location often require employee agreement. Employers cannot automatically impose significant changes without considering contractual and legal obligations. Where material changes cannot be agreed, employers may need to consider a formal termination-and-re-engagement process or other lawful alternatives, subject to Swedish employment law requirements.

Termination of employment is also regulated. Under the Employment Protection Act (LAS), employers generally need objective grounds for dismissal and must follow applicable notice requirements and procedural rules. Dismissals are generally categorised as either dismissals for personal reasons or dismissals due to redundancy (lack of work). Different legal requirements and procedural obligations may apply depending on the reason for termination.

Common reasons contracts in Sweden are modified

Employment contracts in Sweden may be updated when:

Employees change roles.

Compensation is adjusted.

Working arrangements change.

Employees relocate.

New responsibilities are introduced.

Business restructuring occurs.

Remote or hybrid working arrangements are implemented.

What happens during termination in Sweden?

When terminating employment, employers may need to consider:

Notice periods.

Collective agreement obligations.

Documentation requirements.

Consultation obligations.

Final salary and accrued vacation payments.

A key consideration for international employers

Many employment contract disputes in Sweden arise when global HR policies are applied without considering local employment protections. Contract amendments and termination decisions should always be assessed against Swedish labour law requirements. Employers should also be aware that contractual provisions commonly used in other jurisdictions, such as broad at-will termination concepts, may not be enforceable in Sweden.

To summarise,employers can modify or terminate employment contracts in Sweden, but changes and dismissals must comply with the Employment Protection Act, employment contract terms, and any applicable collective bargaining agreements.

What employment laws affect labour contracts in Sweden?

Labour contracts in Sweden are primarily governed by the Employment Protection Act (LAS), but several other employment laws can affect how employment contracts are drafted, managed, and terminated. Employers must ensure that contract terms comply with statutory employment rights and any applicable collective bargaining agreements.

Unlike some countries where the employment contract is the main source of employment rights, labour contract in Sweden arrangements operate within a broader legal framework. This means employers cannot use contract terms to remove or reduce rights provided under Swedish employment legislation.

Key employment laws that affect employment contracts in Sweden

Employment Protection Act (LAS)
The Employment Protection Act regulates key aspects of the employment relationship, including employment types, notice periods, dismissal procedures, and employee protections. It also establishes permanent employment as the default form of employment unless another arrangement has been agreed.

Annual Leave Act
The Annual Leave Act gives employees the right to annual vacation leave and affects how leave entitlements are reflected in employment contracts. Employees are generally entitled to a minimum of 25 days of annual leave per year, although collective bargaining agreements may provide enhanced entitlements.

Working Hours Act
This legislation regulates working time, overtime, rest periods, and maximum working hours, all of which may influence contract terms and workplace policies.

Parental Leave Act
The Parental Leave Act provides employees with rights relating to maternity leave, parental leave, and leave connected to childcare responsibilities.

Discrimination Act
The Discrimination Act prohibits discrimination throughout the employment relationship, including recruitment, compensation, promotion, and termination decisions.

Work Environment Act
Employers in Sweden are responsible for providing a safe and healthy work environment, and these obligations apply regardless of what is stated in the employment contract.

Co-Determination in the Workplace Act (MBL)

The Co-Determination in the Workplace Act regulates information and consultation obligations between employers and trade unions and may affect employment-related decisions, restructurings, and dismissals.

Whistleblower Protection Act

The Whistleblower Protection Act provides protections for individuals reporting misconduct and may impose obligations on certain employers regarding internal reporting channels and whistleblower procedures.

What role do collective agreements play?
In Sweden,collective bargaining agreements have a significant influence on employment contracts employers in Sweden use. Depending on the industry and employer, collective agreements may contain provisions relating to:

Salaries and wage reviews.

Pension contributions.

Working hours.

Overtime compensation.

Notice periods.

Leave entitlements.

Insurance benefits.

Occupational pension arrangements.

Additional parental leave benefits.

Enhanced sick pay arrangements.

For many employers in Sweden, understanding the applicable collective agreement is just as important as understanding employment legislation. In practice, collective bargaining agreements often regulate employment conditions more extensively than statutory minimum requirements and may significantly influence the drafting of employment contracts.

In summary, Labour contracts in Sweden are affected by several employment laws, including the Employment Protection Act, Annual Leave Act, Working Hours Act, Parental Leave Act, and Discrimination Act. Employers should also consider any collective bargaining agreements that may influence employment terms and conditions.

How can CXC help businesses create compliant employment contracts in Sweden?

CXC helps businesses create compliant employment contracts in Sweden by ensuring employment terms align with Swedish labour laws, local employment practices, and any applicable collective bargaining agreement requirements.

For international employers, preparing an employment contract in Sweden involves more than documenting salary and job responsibilities. Contract terms must reflect local employment requirements relating to working hours, leave entitlements, notice periods, employment type, and statutory employee protections, mandatory employment information requirements, occupational pension considerations, and collective bargaining agreement obligations where applicable.

How CXC supports employment contracts in Sweden?

CXC helps businesses navigate key areas of employment contract management, including:

Drafting compliant employment contracts for employees in Sweden.

Supporting permanent and fixed-term employment arrangements.

Aligning employment terms with Swedish labour law requirements.

Managing employment documentation during onboarding.

Supporting contract updates following promotions, salary reviews, or role changes.

Providing guidance on employment contract obligations throughout the employee lifecycle.

Supporting international employers

Companies expanding into Sweden often need to balance global employment policies with local legal requirements. CXC helps employers adapt employment contracts to the Swedish market while maintaining consistency across their international workforce.

This is particularly important when hiring employees through an Employer of Record arrangement, managing remote employees, or expanding into Sweden without an established local HR function.

Why local expertise is important when hiring in Sweden

Employment contracts in Sweden operate alongside employment legislation and collective agreements. Terms that may be common in one country are not always appropriate or enforceable in another. For example, restrictive covenants, probationary periods, termination provisions, and variable compensation arrangements should be reviewed against Swedish legal requirements and market practice before implementation.

Local expertise can help employers avoid contract provisions that conflict with Swedish employment requirements and ensure employment documentation reflects current legal obligations. This helps reduce employment risks, improve compliance, and support a consistent employee experience throughout the employment lifecycle.

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