Swedish Labor Laws and Worker Rights

The rights of workers are to be found in what is collectively called labor law and is based on statutes, ordinances and regulations. Labor legislation has given workers the right to participation in decision-making at the workplace, the right to holidays, shorter working hours, a better working environment, and increased employment security.

The social insurance legislation also contains important components for the protection of workers including national health insurance, occupational injury insurance, and national pension insurance.

There is also the specific form of regulation called the collective agreement, which is concluded between the trade union and the employer. Many important rules of labor law are mandatory to the benefit of the worker – collective agreements that deviate from the law must be more advantageous than the law for the individual worker.

One example of a mandatory rule is the requirement that there must be objective grounds for termination of a permanent employment contract. Other rules in labor law are discretionary, which means that it is possible to agree on a deviation from the law to the advantage of the individual worker through a collective agreement. Examples of such rules are the rules of the Act on Security of Employment (LAS) concerning the various forms of employment restricted in time. The collective agreements also cover, apart from provisions concerning pay, conditions of work etc, a number of insurance solutions that supplement the statutory insurance protection against sickness, occupational injury, unemployment, old age and death.

Swedish labor law as a whole is a comprehensive code of statutes. Presented below are some important examples of the statutory and contractual rights and obligations that the workers have that foreign employers need to be aware of.

The Act on Board Representation

The Act on Board Representation for employees of limited liability companies and co-operative enterprises / organizations is also linked with the Act on Co-determination at Work.

The Act on Board Representation gives the local trade union the right to appoint two representatives to the board of directors if the company has at least 25 employees.

If the company has at least 1000 employees and operates in several industries or business sectors, the trade union has the right to appoint three board representatives.

Anti-Discrimination Law

The Act on Equality Between Women and Men at Work
The Act on Equality between Women and Men at Work prohibits both direct and indirect gender discrimination in working life. Compliance with the Act is monitored by the Equal Opportunities Ombudsman and the Equal Opportunities Board, both appointed by the Government.

Prohibition Against Gender Discrimination
No one may be at a disadvantage because of their sex. This applies to pay, employment conditions, the opportunities for promotion,and employment as such.

Prohibition Against Sexual Harassment
By sexual harassment is meant unwelcome behavior based on sex or unwelcome behavior of a sexual nature that violates the employee’s integrity at work. The employer is obliged to preclude and prevent anyone being exposed to harassment or sexual harassment as a result of a report of sexual discrimination. If the employer learns of the existence of sexual harassment he has a duty to investigate this and take action. If he fails to do so he may be ordered to pay damages.

Active Measures for Equal Opportunity
Apart from prohibiting sexual discrimination, the Act also sets up rules for active measures that employers are obliged to take in order to promote equality between women and men. Employers with more than nine employees are obliged to draw up annual plans for how the work of equal opportunity is to be carried out at the workplace. As part of this work of equal opportunity the employer shall also make an annual survey of pay differences between women and men.

Ethnic Anti-Discrimination Laws
Sweden has proactive laws and regulations requiring employers to take measures to protect against ethnic discrimination in working life. It covers both direct and indirect discrimination and applies regardless of whether the employer’s intention was discriminatory or not. The Act applies where there is a employer-employee relationship and during the entire recruitment procedure even if no decision to employ is taken. The employer is assigned the duty to investigate and the duty to take measures where there are allegations of ethnic harassment of employees. Furthermore, an employee who has reported ethnic harassment may not be exposed to reprisals as a result of the report. Employers that break the law may be ordered to pay damages. The Ombudsman against Ethic Discrimination (DO) and the Anti-Discrimination Board will supervise compliance with the Act.

Prohibition of Discrimination in Working Life of People with Functional Disabilities
Compliance of which is supervised by the Disability Ombudsman (HO)

Prohibition of Discrimination in Working Life on the Grounds of Sexual Orientation
Compliance of which is supervised by the Ombudsman against Discrimination on Grounds of Sexual Orientation (HomO) and the Anti-Discrimination Board.

Note: Additional Swedish Labor Laws are described on this web site in the section for individuals.