Co-determination at work Act

This act covers the right of employees to associate in organizations and to act through them without interference by the other party. This is known as the right of association. Any failure to respect this right can result in a liability to pay damages.

The law obliges employers and employees through their unions to regulate their relations through negotiation. The primary instrument in this context is the collective agreement.

Collective agreements pay a dominant role in the regulation of employment. The two parties must be an employer or employer association and a trade union. The agreement must be in writing.

Once an agreement has been reached, a peace obligation comes into effect and collective industrial action with the aim of changing existing collective agreements cannot be taken. Breach of a collective agreement or a peace obligation renders the offender liable to pay damages. During the term of the agreement, disputes shall be referred to the courts for settlement.

The most significant innovations in the Act on Co-determination at Work were the provisions concerning the extended right to negotiate, the right to be informed, the interpretative precedence, and the right of veto.

Act on the position of trade union representatives

The local union branch is in principle free to decide how many representatives that are to be appointed at a workplace. These individuals may not be discriminated against or prevented from performing their union duties. Within rather wide limits, these representatives are entitled to such leave, as they need to perform their duties. The amount and timing of this leave is decided in consultation with the employer.

Union activities, which relate to the representative’s own workplace may be performed without loss of pay. To a limited extent, remuneration is payable for union activities outside working hours.

In the event of a dispute on this, the opinion of the union will prevail until there is a court decision.

Work environment Act

The Work Environment Act places a great emphasis on chemical risks to health. It also focuses on psychological aspects of the work environment. A fundamental principle is that work should be adapted to the physical and psychological situation of the employee.

The act strengthens earlier rules, such as those concerning safety, and reinforces the sanctions, which facilitate the enforcement of the act. Consultation with employees is given increased prominence.

Holidays Act

The Holidays Act deals with entitlements to holidays and holiday pay. The statutory holiday entitlement is five weeks. The entitlement begins in the first year of employment. Holiday pay is only paid if it has been earned. It constitutes 12 % of the employee’s income during the earning year.

The earning year runs from April 1 to March 31. Holiday pay is also earned, with certain limitations, in the event of illness or other periods of absence. The employee is entitled in certain cases to save holiday entitlement.

Collective agreements, which depart from the act, exist for both workers and white-collar employees.

Employment Security Act

This act applies to all employees and regulates both the commencement and the termination of employment. It restricts the right to employ people on a temporary basis. Exceptions are for example that a person may be employed for a probationary period or to cover certain peaks in activity.

No one may be dismissed unless there are factual grounds. In normal cases, an employee must be given one month’s notice. The employer is obliged to pay full wages during lay-offs.

There are also rules concerning the order in which individuals are to be made redundant or re-employed. The principle is that the person who has been employed the longest should have the most job security. In certain circumstances, the court can compel an employer to re-employ an individual.

The law contains extensive provisions for damages in the event of an employer contravening the act. 

Anti-discrimination legislation

On 1 januari 2009 the new Discrimination Act entered into force. The purpose of this Act is to combat discrimination and in other ways promote equal rights and opportunities regardless of sex, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation or age.

Shortly expressed, employers are forbidden to discriminate anyone who is protected by the act. Employers also have to make some active measures, for example drawing up action plans for equal pay and gender equality plans and pay reviews. Plans and pay reviews are required every three years.
A new penalty, compensation for discrimination, has been introduced for infringements of the Discrimination Act. The purpose is to create better conditions for higher levels of compensation for victims of discrimination.
A new agency, the Equality Ombudsman, is to monitor compliance with the act.