Redundancy – checklist
- Invite the union counterparties of the collective bargaining agreement to negotiations in accordance with Section 11 in the Co-determination Act (MBL). If only one employee is redundant, or if your company is not bound by a collective bargaining agreement, see specifically Section 12 in the Co-Determination Act (MBL).
If your company is not bound by a collective bargaining agreement some, but not all rules addressed below apply.
- Section 15 in the Co-determination Act specifies what an employer needs to present in writing prior to the negotiation, i.e. information about the reason for the planned organisational change and redundancies, the amount of employees who will be affected and their roles in the company as well as their employment date. Also when the redundancies are planned to be made effective. Besides this, you may also be asked to provide a list of priority to show all employees and their positions and employment date.
If confidentiality is needed regarding any information given in the negotiation, the employer may request a negotiation regarding confidentiality according to Section 21 and 22 in the Co-determination Act (which can be negotiated in the same negotiation.)
- Notice shall be given to the Public Employment Service (Arbetsförmedlingen) if at least 5 employees are to be made redundant in one single region. For more information, see www.amv.se.
- Prepare the negotiations.
A: Examine the possibility to assign to other vacant positions within the company, at the specific workplace or elsewhere in the country.
B. Set up a list of priority for each collective bargaining agreement and for each workplace. The “last in – first out”-principle applies,
C. Complete the special risk-evaluation, according to work environment regulations. Investigate what potential risks the change may result in and which measures you plan to take in order to eliminate or minimize the risks.
- Negotiate the change of the organisation and the consequences for the employees:
A. Offers of vacant positions according to point 4A above.
B. The list of priority according to point 4B above and the redundant employees.
- If the local union parties have objections they may request a second negotiation at national level. The request must (according to must collective bargaining agreements) be made within 7 days from the conclusion of the local negotiation. Employer decisions may not be made until these negotiations are concluded or the 7 days have passed without a request being made.
- When the negotiations have been concluded, the terminations can take place. Notice letters must be given in writing and in person (except for in special circumstances). The notice letter must contain certain information and can be downloaded on our website.
- During the notice period the employer must pay salary and other benefits, even if the employee is released of his/her work duties.
- The employer needs to issue employer’s certificates for the employees in order for them to apply for unemployment benefit.
- Employers bound by a collective bargaining agreement shall report redundant employees to TRR (white-collar workers) or TSL (blue-collar workers) by which the redundant employees will receive assistance for finding new jobs.
- Employees with at least 12 months total employment during the past 3 years have preferential right to re-employment. The preferential right is effective during the notice period and until nine months have passed from the last day of employment, within the same work place and collective bargaining agreement.