Understanding redundancy under Swedish Employment Law
Redundancy in Swedish employment law occurs when a role is no longer needed due to organizational or economic changes. It is unrelated to an employee’s performance and instead reflects the employer’s right to reorganize the business. At the same time, Swedish law sets out clear requirements that must be followed before a redundancy can be carried out.
While redundancy in Sweden involves several mandatory steps, the process is manageable with proper preparation. Understanding reassignment obligations, union consultation, priority rules and post-termination rights is essential for ensuring both legal compliance and fair treatment of employees.
– Questions about redundancy are common, as the process is often challenging for companies to navigate. It brings with it many emotions, both for employers and, of course, employees. Having support throughout the process is valuable, as it can be demanding both legally and emotionally, says Jacob Stenblom, Labour Law Expert at Almega.
- A crucial step in the redundancy process is to investigate whether the employee can be reassigned to a vacant position anywhere within the same legal entity.
- If no reassignment options exist, the employer must apply the “last-in, first-out” principle. Employees with the shortest total employment time at the workplace are the first to be affected.
- Employers may exempt employees from the priority list to retain key skills.
- Employees made redundant may have a preferential right to re-employment for up to nine months after the notice period.
- Employers must consult with relevant trade unions, before taking decisions of important matters such as redundancy.
– Before requesting negotiations with the unions, I recommend that employers do their homework. Check whether there are any vacant positions and see how the situation develops before entering into negotiations, says Christine Sorselius, Labour Law Expert at Almega.
For guidance, episode 25 of Almegapodden explains redundancy in Swedish employment law for English-speaking listeners.
For our member companies, you can find a checklist in English for redundancy at Arbetsgivarguiden.