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Notice periods in Sweden
Termination of employment in Sweden
Post-termination restrictions in Sweden
Waivers in Sweden
Transfer of undertaking in Sweden
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End of employment in Sweden
There are a number of different reasons an employment relationship might come to an end: the employee might quit or retire, or they might be dismissed or made redundant. Whatever the situation, every country has certain rules and regulations that apply to the end of employment — and Sweden is no exception.
In this section, we’ll discuss the different ways to legally dismiss an employee in Sweden, as well as the required notice periods for both employees and employers. We’ll also talk about the post-termination restraints you can legally place on employees in Sweden, and employees’ rights after a transfer of undertaking
Notice periods in Sweden
Both employers and employees in Sweden need to give notice when they want to end their employment contract. The specific terms are usually outlined in the employee’s collective bargaining agreement and/or employment contract.
Notice periods in Sweden for employers
To dismiss an employee in Sweden, employers usually have to give notice. The length of the required notice period in Sweden is set by collective agreement and depends on how long the employee has worked for their employee. Employees who have been given notice must continue to work as normal during their notice period, and their employer must pay them for their work. Even if the employer has no work to assign the employee, they must still be paid.
For employees without a collective agreement in Sweden the standard notice period is as follows:
- Less than two years of employment: 1 month
- 2–4 years of employment: 2 months
- 4–6 years of employment: 3 months
- 6–8 years of employment: 4 months
- 8–10 years of employment: 5 months
- 10+ years of employment: 6 months
Notice period for resignation in Sweden
When an employee wants to leave their position, they also have to give notice to allow their employer time to find a replacement. Under the Employment Protection Act, the standard notice period in Sweden for employees is one month. An employer and an employee can contractually agree on a longer notice period, and collective agreements may also stipulate a longer period based on the employee’s age and length of service. However, this typically can’t be more than three months, or it may be considered unfair contract terms.
When an employee resigns (gives notice) in Sweden, their resignation is generally binding, and the employer has no obligation to give the job back if they change their mind. However, there are two exceptions to this. The first is when an employee has resigned hastily and then quickly changes their mind, for example after sleeping on the decision. The second is when the employer can be deemed to have coerced or provoked the employee to resign.
Notice period during probation in Sweden
It’s common in Sweden for employment contracts to include a probationary period, during which both parties can end the contract with limited notice. Employers can generally dismiss an employee during their probationary period with two weeks’ notice, though collective bargaining agreements and individual employment contracts may provide different terms.
Severance pay in Sweden
Severance pay is not mandatory in Sweden. However, it may be required if it’s stated in a collective agreement or an employment contract.
Termination of employment in Sweden
The process of termination of employment in Sweden varies depending on the individual employment contract and the collective agreement that applies. However, the Employment Protection Act provides minimum standards that employers must abide by.
Generally speaking, there are two processes for the termination of employment in Sweden; termination with notice and summary dismissal. Both of these require the employer to have objective grounds for dismissal, but they are otherwise quite different. We’ll discuss both of them below.
Termination with notice in Sweden
To terminate an employee with notice in Sweden, an employer must give the employee the appropriate notice in accordance with their collective agreement and employment contract. This often depends on how long the employee has been employed.
The employer also needs to have objective grounds for the dismissal. These can be either:
- Shortage of work: This is a reason related to the business, which means the employee is no longer needed. This could be because of a reduction in operations, or organisational restructuring, for example.
- Personal grounds: These are things related to the employee themselves, and may include misconduct, unauthorised absences, or serious difficulties working with others.
Summary dismissal
Summary dismissal is dismissal without notice. In Sweden, it’s only possible when the employee has committed a serious breach of their obligations. Grounds for summary dismissal might include gross misconduct, repeated refusal to work, or repeated or prolonged absences without a valid reason. The cause for the dismissal must have occurred within two months of the time when the employee is dismissed.
Possibility of redeployment
Before dismissing an employee with notice, employers in Sweden must first investigate the possibility of redeploying them in an alternative role. Where possible, the new job should be equivalent to the old one, but it does not have to come with the same employment conditions (including pay). Employers don’t have this obligation in the case of summary dismissal.
Negotiations with trade unions
Employers are also required to negotiate and consult with trade unions before terminating employment in Sweden. The exact rules differ depending on the type of dismissal:
- Dismissal with notice (shortage of work): Employers must invite all unions concerned to negotiate before dismissing employees on the basis of a shortage of work (redundancy).
- Dismissal with notice (personal grounds): Employers must inform the employee and notify the union to which they belong at least two weeks in advance. If the union requests a consultation, the termination must be put on hold until this is complete.
- Summary dismissal: Employers must give the employee’s trade union at least one week’s notice of the dismissal, and the union has one week to request a consultation. If they do, the dismissal must be put on hold until the end of the consultation.
Post-termination restrictions in Sweden
Post-termination restraints (or post-termination restrictions) are restrictions that employers can impose on their employees after they have stopped working for them. In Sweden, there are no specific statutory rules prohibiting post-termination restraints. However, they must be reasonable in order to be enforceable, meaning they can’t unreasonably limit the employee’s ability to make a living. Collective bargaining agreements may provide their own rules for post-termination restrictions, though these could still be deemed unreasonable by a Swedish court. The main types of post-termination restrictions that could be possible in Sweden are:
- Non-compete agreements
- Customer non-solicit agreements
- Employee non-solicit agreements
Non-compete agreements in Sweden
Non-compete agreements prevent employees from working for or setting up a business that competes with their former employer. These are typically only valid for a certain period after the end of the employment contract.
In Sweden, there is no specific maximum duration for a non-compete agreement, as long as it can be objectively justified. In practice, the standard period is nine months. Longer periods of up to 18 months may be permissible in some circumstances.
In order for a non-compete agreement to be valid, the employee must be compensated during the period when it applies. However, the compensation doesn’t need to exceed 60% of their former salary. Non-compete agreements are also only permissible when they can be objectively justified. That means they are typically only used for employees in key management positions or with access to important trade secrets.
Customer non-solicits in Sweden
Customer non-solicit agreements prohibit employees from contacting or poaching customers from their former employer. Again, these are typically only enforceable if the restrictive period is reasonable. If a court finds a customer non-solicit agreement to be unreasonably strict, they can adjust it.
Employee non-solicits in Sweden
Employee non-solicit agreements prevent employees from contacting or poaching employees from their former employer. These are permissible in Sweden, subject to some limitations. According to Swedish case law, the restricted period for an employee non-solicit agreement (or non-solicitation clause) should not be longer than six months.
Waivers in Sweden
In some circumstances, employees in Sweden may waive some of their statutory rights under the Employment Protection Act or other relevant legislation. This is usually in the context of a settlement agreement, wherein the employee waives their rights in exchange for a lump sum from their (former) employer.
Transfer of undertaking in Sweden
A transfer of undertaking is when one entity acquires all or part of another one. In Sweden, there are strict rules on what happens to the employees of a transferred entity.
Employee protections after a transfer of undertaking in Sweden
When an entity is purchased by or otherwise transferred to another entity, the employees of the original entity must be transferred with it. A transfer of undertaking is not a reasonable ground for dismissing an employee, though employees can theoretically be dismissed for economic, organisational, or technical reasons brought about by the transfer.
If an employee doesn’t want to be transferred to the purchasing entity, they can oppose the transfer and remain employed by their original employer. If there is no company left (because it has been sold to the purchasing entity in its entirety), the employee is made redundant.
Following a transfer of undertaking, collective bargaining agreements also continue to apply to transferred employees. The new employer is obligated to apply any terms and conditions set out in the collective agreement for at least one year after the transfer date.
Consulting and informing unions in the case of a transfer of undertaking
Before a transfer of undertaking can happen in Sweden, both the purchased and the purchasing entity must call for and conduct consultations with any relevant trade unions. These consultations must be initiated and concluded before any decision is made regarding the transfer.
Avoid risk and missed opportunities with our end-to-end employment solutions
There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Sweden — or you could end up facing legal issues.
Our solutions ensure your business is protected from risk when a relationship with a worker comes to an end — whatever the reason. We can also help you to avoid missed opportunities by re-deploying talent where possible .
FAQ's
How does termination of employment work in Sweden?
Termination of employment in Sweden is regulated by the Employment Protection Act (LAS), which generally requires employers to have valid grounds for ending an employment relationship. The rules that apply depend on whether the termination is due to redundancy, personal reasons, or serious misconduct.
Unlike some countries where employment can be terminated with relatively few restrictions, Swedish labour law places significant emphasis on employment protection. Employers must follow established procedures and ensure that any dismissal is supported by lawful grounds.
Common reasons for termination of employment in Sweden
Employment may end due to:
- Redundancy or organisational restructuring.
- Personal reasons related to the employee.
- Mutual agreement between employer and employee.
- Expiry of a fixed-term contract.
- Summary dismissal in cases of serious misconduct.
Employers should carefully distinguish between redundancy dismissals and dismissals based on personal reasons, as different procedural and legal requirements may apply. The process for termination can vary depending on the reason for dismissal and whether a collective bargaining agreement applies.
What should employers in Sweden consider?
Before proceeding with termination of employment Sweden employers should assess:
- Whether valid grounds exist.
- Notice obligations.
- Documentation requirements.
- Collective agreement provisions.
- Employee consultation requirements where applicable.
- Redeployment obligations before dismissal.
- Trade union consultation obligations under the Co-Determination in the Workplace Act (MBL).
In summary,termination of employment in Sweden generally requires valid grounds and compliance with statutory procedures. Employers should ensure dismissal decisions are supported by law and any applicable collective agreement requirements.
What rules apply to termination of employment in Sweden?
Termination of employment in Sweden is governed primarily by the Employment Protection Act (LAS), which establishes rules relating to dismissal, notice periods, redundancy, and employee rights.
The law is intended to ensure employees are not dismissed arbitrarily and that employers follow a fair process when ending employment.
Key rules employers in Sweden must follow
Employers may need to consider:
- Whether there are objective grounds for dismissal.
- Applicable notice periods.
- Employee consultation requirements.
- Redeployment obligations in certain situations.
- Documentation supporting the termination decision.
- Collective bargaining agreement requirements.
- Priority rights to re-employment in certain redundancy situations.
Do the rules differ based on the reason for termination?
Yes. The legal requirements for termination of employment in Sweden can vary depending on why the employment relationship is ending. Employers should assess each situation individually because the procedures, documentation requirements, and employee protections may differ depending on the circumstances.
For example, termination due to redundancy is generally handled differently from termination for personal reasons or serious misconduct. Employers in Sweden may also have different obligations when a fixed-term contract reaches its agreed end date compared with terminating a permanent employee.
Common reasons employment may end include:
- Redundancy arising from business or organisational needs.
- Organisational restructuring.
- Personal reasons relating to the employee.
- Serious misconduct.
- Expiry of a fixed-term contract.
- Mutual agreement between employer and employee.
Why does the reason for termination matter?
The reason for termination in Sweden can affect:
- Whether objective grounds are required.
- Consultation obligations.
- Notice period requirements.
- Documentation and procedural steps.
- Employee rights during the termination process.
- Potential redeployment obligations.
- Potential preferential rehire rights.
For employers covered by collective bargaining agreements, additional requirements may also apply depending on the circumstances of the termination.
What rights do employees have during termination in Sweden?
Employees in Sweden have several legal protections during termination, including the right to notice, protection against unfair dismissal, and payment of outstanding employment entitlements.
The exact rights available depend on the employee’s circumstances, length of service, employment contract, and any applicable collective bargaining agreement.
Employee rights during termination of employment in Sweden
Employees may be entitled to:
- A notice period where required by law or contract.
- Continued salary and benefits during the notice period.
- Payment for accrued but unused vacation leave.
- Protection against unlawful dismissal.
- Information relating to the termination process.
- Access to rights provided under collective agreements.
- Preferential rights to re-employment following certain redundancy dismissals.
What happens during the notice period?
In most situations, employees remain employed throughout the notice period and continue receiving salary and contractual benefits unless another arrangement is agreed. Employees generally remain bound by their employment obligations during the notice period unless released from duties by the employer.
Are employees protected against unfair dismissal?
Yes. Swedish employment law provides significant protection against dismissals that lack objective grounds or fail to follow required procedures. Employees may challenge dismissals through legal proceedings and, in some circumstances, seek compensation for unlawful termination.
In summary, employees in Sweden have important rights during termination, including notice protections, payment of outstanding entitlements, and safeguards against unlawful dismissal.
Is there a notice period for ending employment in Sweden?
Yes, notice periods generally apply when employment ends in Sweden. The length of the notice period depends on factors such as length of service, employment contract terms, and any applicable collective bargaining agreement.
Under Swedish law, employees are typically entitled to a minimum notice period when employment is terminated by the employer.
What affects the notice period in Sweden?
Notice requirements may vary based on:
- Length of employment.
- Employment contract provisions.
- Collective bargaining agreements.
- Whether the employee or employer initiates the termination.
Statutory notice periods under LAS can range from one month to six months depending on the employee’s length of service.
What happens during the notice period?
Employees usually continue working and receive their normal salary and benefits throughout the notice period. In some cases, employers may choose to release employees from active duties while continuing to pay them.
Do notice periods apply to all employment types?
Notice obligations can differ for permanent and fixed-term employment arrangements, depending on the terms of the contract and applicable legislation. Summary dismissal due to gross misconduct may allow termination without notice in exceptional circumstances.
To summarise, notice periods are a standard part of employment termination in Sweden. The length of notice depends on employment duration, contract terms, and collective agreement provisions.
What must employers pay at the end of employment in Sweden?
At the end of employment in Sweden, employers must pay all outstanding amounts owed to the employee, including earned salary and accrued vacation pay.
The exact payments required depend on the employee’s contract, compensation structure, and the circumstances of the termination.
Payments commonly made at the end of employment
Employers may need to pay:
- Outstanding salary.
- Salary during the notice period.
- Accrued but unused vacation pay.
- Earned bonuses or commissions where applicable.
- Contractual benefits owed under the employment agreement.
- Payments required under collective agreements.
Is final pay in Sweden regulated?
Yes. Employers in Sweden are expected to settle outstanding employment-related payments in accordance with Swedish employment laws, payroll obligations, and contractual arrangements.
What should employers review before making final payments?
Employers in Sweden should verify:
- Leave balances.
- Bonus entitlements.
- Notice period obligations.
- Collective agreement requirements.
- Pension and benefit arrangements.
- Any outstanding expense reimbursements.
- Post-termination compensation obligations under restrictive covenant arrangements where applicable.
At the end of employment in Sweden, employers must pay any outstanding salary, accrued vacation pay, and other contractual or statutory entitlements owed to the employee.
When is severance pay required in Sweden?
Severance pay is not generally required under Swedish law when employment ends. Unlike many countries, Sweden does not have a statutory severance pay system that automatically applies whenever an employee is dismissed or made redundant.
Instead, severance pay Sweden arrangements typically arise through collective bargaining agreements, employment contracts, settlement agreements, or employer-specific redundancy programmes, or negotiated separation arrangements.
When might severance pay be provided?
Although severance is not a legal requirement in most situations, employers may offer severance payments in connection with:
- Workforce restructures and reorganisations.
- Redundancy programmes.
- Mutual separation agreements.
- Settlement of employment disputes.
- Executive employment contracts.
- Collective agreement arrangements that provide additional financial support.
- Negotiated exits intended to mitigate litigation risk.
In some cases, severance payments may be used to facilitate an agreed departure or to resolve a dispute relating to the termination of employment.
What payments are required even when severance is not?
The absence of statutory severance pay does not mean employers can end employment without financial obligations. Depending on the circumstances, employers may still need to provide:
- Salary during the notice period.
- Payment in lieu of notices where appropriate.
- Accrued but unused vacation pay.
- Outstanding bonuses, commissions, or contractual compensation.
- Benefits required under collective agreements.
- Other payments owed under the employment contract.
- Compensation arising from settlement agreements or post-termination restrictive covenants where applicable.
As a result, employees may still receive significant payments at the end of employment even when severance pay is not provided.
Why is severance often misunderstood?
Many international employers assume severance is mandatory because it is common in jurisdictions such as France, Spain, Italy, Mexico, or several countries in Asia and Latin America. In Sweden, employee protection is achieved primarily through employment security rules, notice periods, consultation requirements, and dismissal protections rather than mandatory severance payments.
This means employers should focus on complying with termination procedures and notice obligations rather than assuming a standard severance formula applies. Employers should also assess whether collective bargaining agreements provide access to transition support or insurance schemes that may apply following redundancy situations.
How do fixed-term contracts end in Sweden?
A fixed-term contract in Sweden generally ends automatically on the agreed end date or when the specified project, assignment, or temporary need has concluded.
Unlike permanent employment, fixed-term contracts do not always require termination through a formal dismissal process because the employment relationship ends according to the terms agreed at the start of employment.
How can a fixed-term contract in Sweden end?
A fixed-term arrangement may end when:
- The agreed contract period expires.
- A specific project is completed.
- Seasonal work concludes.
- A substitute employee is no longer required.
Do employers in Sweden need to provide notice?
Notice requirements depend on the contract terms, applicable legislation, and any collective bargaining agreement provisions. Employers should review the specific contract before assuming that no notice obligations apply. In certain circumstances, employers may be required to notify employees in advance that a fixed-term employment relationship will end.
What should employers in Sweden monitor?
Employers should track the duration and renewal of fixed-term contracts because certain temporary employment arrangements may convert into permanent employment under Swedish law.
Under LAS, employers should carefully monitor cumulative employment periods, as repeated fixed-term engagements may trigger permanent employment rights. Employers should also review any preferential re-employment rights that may arise when fixed-term employment ends.
To summarise, fixed-term contracts in Sweden generally end when the agreed employment period or assignment concludes, although employers should review any notice or collective agreement obligations that may apply.
What post-employment restrictions can employers use in Sweden?
Employers in Sweden can use post-employment restrictions such as confidentiality clauses, non-compete clauses, and non-solicitation provisions, provided the restrictions are reasonable and justified.
Swedish courts generally assess these restrictions carefully and may limit or refuse to enforce provisions that are considered excessive.
Common post-employment restrictions in Sweden
Employers may use:
- Confidentiality obligations.
- Non-compete clauses.
- Customer non-solicitation clauses.
- Employee non-solicitation clauses.
- Intellectual property protections.
Are non-compete clauses in Sweden enforceable?
Non-compete clauses can be enforceable in Sweden, but they must generally protect a legitimate business interest and be proportionate in terms of duration, geographic scope, and impact on the employee.
Employers should be aware that collective bargaining guidance and case law have historically influenced the enforceability of restrictive covenants. Restrictions that go beyond what is reasonably necessary to protect confidential information, customer relationships, or legitimate business interests are less likely to be enforceable.
What should employers in Sweden consider?
Post-employment restrictions should be tailored to the employee’s role and the business interests being protected. Broad restrictions that prevent employees from earning a living are less likely to be enforceable.
In short, employers in Sweden can use non-compete, confidentiality, and non-solicitation clauses, but the restrictions must be reasonable and proportionate to be enforceable.
How do employers manage end-of-employment compliance in Sweden?
Employers manage end-of-employment compliance in Sweden by following statutory termination requirements, documenting employment decisions, administering final payments, and ensuring all obligations are fulfilled before employment ends.
Compliance should be considered from the moment a termination is being contemplated rather than only when the employee leaves.
Area’s employers in Sweden should review
Employers should assess:
- Grounds for termination.
- Notice period requirements.
- Employee consultation obligations.
- Final salary calculations.
- Vacation pay balances.
- Collective agreement provisions.
- Return of company property.
- Employment documentation.
- Redeployment obligations under LAS.
- Trade union consultation requirements under MBL.
- Potential preferential re-employment rights.
Why is planning important?
Swedish employment laws provide significant employee protections. Careful planning helps employers ensure termination decisions are supported by appropriate documentation and comply with legal requirements. Employers should maintain clear records supporting the business rationale for dismissals, restructuring decisions, and redundancy selections.
How do collective agreements affect the process?
Many collective agreements contain additional requirements relating to notice, consultation, benefits, and redundancy procedures. Employers should review these obligations before finalising employment decisions. Failure to comply with collective agreement requirements may create additional legal and financial exposure even where statutory requirements have been satisfied.
To summarise, end-of-employment compliance in Sweden requires employers to manage termination procedures, notice obligations, final payments, and documentation in accordance with employment laws and collective agreements.
How does CXC support HR teams during employee termination in Sweden?
CXC supports HR teams during employee termination in Sweden by helping manage employment administration, compliance requirements, payroll processes, and workforce documentation throughout the offboarding process.
Ending an employment relationship in Sweden requires careful management of notice obligations, final pay calculations, accrued leave balances, employment records, and local compliance requirements. CXC helps organisations navigate these responsibilities while maintaining consistency across their workforce operations.
How CXC supports end-of-employment processes
CXC can assist with:
- Employee offboarding administration.
- Payroll and final payment coordination.
- Employment documentation management.
- Compliance support during workforce changes.
- Workforce record maintenance.
- Employee lifecycle administration.
- Support with termination-related compliance processes.
- Guidance regarding employment administration obligations during workforce changes.
- Assistance with documentation and recordkeeping requirements.
Supporting international employers
For companies managing employees across multiple countries, termination procedures can vary significantly. CXC helps employers align local Swedish requirements with broader global workforce policies and processes. This includes supporting employers in navigating local employment obligations while maintaining consistency, governance, and workforce compliance standards across multiple jurisdictions.
By supporting employment administration and compliance activities, CXC helps HR teams manage employee exits efficiently while maintaining compliance with local employment requirements.
Compliantly hire workers anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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