Background Checks

Employers have restricted access to registers containing applicants’ medical or criminal records due to the EU General Data Protection Regulation (GDPR).

• Applicants can voluntarily provide medical or criminal information if requested by the employer during recruitment. However, they are not obligated to comply, and refusal may affect their chances of getting the job.
• Applicants for roles such as teachers and day-care teachers may be required to provide a criminal record except before employment.
• Employers can conduct credit checks if the position involves economic tasks like accounting or handling payments.
• For other positions, the applicant’s consent is necessary before conducting a credit check.

Verification and New Hire Reporting

Employers must verify the employee’s identity and legal work status.

• A new hire report must be submitted to the Swedish Tax Agency (Skatteverket) before the employee begins work.
• If applicable, registration with Försäkringskassan (the Swedish Social Insurance Agency) may be required for social benefits.

Onboarding Process & Documentation

Collecting Required Documentation

Employers must collect and securely store essential documentation, including:

• A written employment contract (strongly recommended, though not always legally required), clearly outlining job duties, salary, working hours, and notice periods.
• Proof of identity and right to work in Sweden.
• Banking and tax information for payroll setup.
• Social security registration details.

Providing Employee Rights and Obligations

During onboarding, employers are legally and ethically expected to inform new hires about:

• Their rights under Swedish labor law, including protections under the Employment Protection Act (LAS).
• Working hours, typically capped at 40 hours per week, with overtime compensation.
• Paid leave entitlements, including a minimum of 25 vacation days per year and generous parental leave.
• Sick leave policies, which involve both employer and government contributions.
• Termination procedures, which require valid grounds and adherence to strict legal processes.

Healthcare

Apart from mandatory social security contributions, employers are not legally required to provide additional insurance.

Employers bound by collective bargaining agreements must provide certain insurances, such as group life insurance (TGL) and work injury insurance (TFA).

Retirement

Employers pay supplementary pensions, often required by collective bargaining agreements (CBA).

• ITP Pension Plan: Predominant for white-collar employees in the private sector, including old-age pension, supplementary old-age pension, disability pension, and family pension. Employees are part of either ITP-1 (defined contribution plan) or ITP-2 (defined benefit plan) based on age.
• SAF-LO Pension Plan: Applies to blue-collar employees and is a defined contribution plan.

Social Security

Employers must pay social security tax on employees’ salaries and benefits, including statutory pension contributions.

• These contributions amount to 31.42% (as of 2020) of the employee’s gross salary and cover old-age pension, survivor’s pension, health insurance, and work injury fees.

Employment Contract Details

An employment contract in Sweden can be verbal or written, but it is always recommended to have written agreements for clarity and compliance. Key features include:

• Employment contracts generally fall into three categories: permanent, fixed-term, and probationary. Permanent employment is the default arrangement, offering ongoing work without a specified end date and typically including full employment benefits. Fixed-term contracts are used for roles with a defined duration or specific project needs and are permitted only under certain legal conditions. Probationary contracts allow employers to evaluate an employee’s performance over a limited period, during which termination procedures may be more flexible.
• Contract Content must include details like job role, salary, working hours, and notice periods.

Employee contracts need to be provided one month before hire date.

Probation Period

The period can last up to six months, during which either party may terminate the contract with two weeks’ notice.

Visas

Independent Contractors

Independent contractors are self-employed individuals who provide services to other businesses. They are not considered employees and do not receive the same benefits

• Business Registration: Contractors must register their business with the Swedish Tax Agency and obtain an F-tax certificate
• Misclassification Risks: It’s crucial to correctly classify workers to avoid penalties and ensure proper tax compliance
• Flexibility: Contractors can set their own rates, choose their clients, and manage their workload independently

Paid Time Off

Employees are entitled to 25 days of paid leave per year, accruing at 2.08 days per month. Commonly, 30 days are given per year.

• Accrual cycle is April 31st to March 31st of the following year
• Employees accrue 25 days to be used in the second year of employment.
• Unused vacation days above 20 can be carried over to the next year. A maximum of 30 days can be held for up to five years.

Public Holidays

• New Year’s Day
• Epiphany
• Good Friday
• Easter Sunday
• Easter Monday
• May Day
• Ascension Day
• Whit Sunday
• National Day
• Midsummer Day
• All Saints’ Day
• Christmas Day
• 2nd Day of Christmas

Bereavement

Employees may be granted paid bereavement leave for up to 10 days to attend to matters related to the death of a family member or loved one. The exact number of days and whether the leave is paid can vary based on the employer’s policy or collective agreements.

Maternity Leave

Employee are required to take a mandatory two-week maternity leave following childbirth, which is paid by the Swedish Social Insurance Agency at approximately 80% of their salary. If there are specific medical grounds, pregnant employees may be eligible for up to 60 days (or longer in certain scenarios) of government-funded leave before childbirth.

This maternity leave is part of the 480 days of joint parental leave available to parents. Additional leave can be taken under the Parental Leave eligibility.

Paternity Leave

The father or the co-mother is entitled to ten days of leave, which must be taken within the first 60 days following birth.

• Swedish Social Insurance Agency at approximately 80% of the worker’s salary.

Parental Leave

Parents can share a combined total of 480 days and up to 390 days can be used by one parent.

• Parents can take up to 30 days of leave simultaneously until the child turns one year old.
• Leave can be taken in one continuous period or divided into several blocks, with a maximum of three periods per year (unless the employer agrees to more).
• Parental leave benefits can be used until the child turns 12 years old or completes year 5 of compulsory school.
• Employees can use parental leave to reduce working hours until the child is eight years old.
• Paid by the Swedish Social Insurance Agency, capped at 1,116 SEK ($115.46 USD) per day. And the remaining 90 Days will be paid 180 SEK ($18.62 USD) per day.

Notice Requirement:

• Advance Notice: Workers must give their employers at least two months’ notice before taking parental leave.

Sick Leave

Paid sick leave is covered by the employer from the 2nd to the 14th day. For sicknesses beyond 14 days, benefits are paid by social security. The first day of sickness is unpaid.

• Compensated at 75% to 80% of the employee’s regular pay rate, depending on the length of the sickness.

Termination Requirements

Employers must have valid reasons, such as redundancy or personal circumstances, to terminate an employee.

Notice Period

Notice periods are stipulated in the employment contract following an agreement between the employer and employee. The notice period is commonly one month.:

• Less than two years – 1 month of notice
• Two years but fewer than four years -2 months of notice
• Four years but fewer than six years – 3 months of notice
• Six years but fewer than eight years – 4 months of notice
• Eight years but fewer than ten years – 5 months of notice
• Ten years or more – 6 months of notice

Severance Pay

In Sweden, there’s no legal obligation for employers to provide severance pay, regardless of an employee’s tenure. However, severance may sometimes be included in collective agreements or individual employment contracts. If a contract or agreement specifies severance, it would apply regardless of an employee’s tenure.

Unemployment Insurance

Unemployment insurance consists of two parts:

• Basic Insurance (grundbelopp): This is available to everyone who meets the basic requirements, regardless of previous income.
• Income-Related Insurance (inkomstrelaterad ersättning): This is voluntary and provides higher benefits based on previous earnings

To qualify for unemployment benefits, the employee must:

• Be registered as a job seeker with the Public Employment Service.
• Be actively seeking work and willing to accept suitable employment.
• Have worked for a certain period (usually at least 6 months) and earned a minimum amount

The amount the employee receives depends on their previous income and whether they have the income-related insurance. The basic insurance provides a fixed amount, while the income-related insurance offers a percentage of their previous salary:

• Unemployment benefits can be received for a maximum of 300 days (approximately 14 months). If the employee has children under 18, they may receive benefits for up to 450 days
• Employees must actively seek work and participate in activities arranged by the Public Employment Service to improve your chances of finding a job

Anti-Discrimination Practices

The Anti-Discrimination Act which prohibits both direct and indirect discrimination as well as harassment in working life based on gender, gender identity or expression, ethnic origin, religion or belief, disability, sexual orientation and age.

Types of Discrimination:

• Direct Discrimination: Occurs when someone is treated less favorably than others in a comparable situation due to a protected ground.
• Indirect Discrimination: Happens when a neutral provision, criterion, or procedure disadvantages people of protected grounds, unless it serves a legitimate purpose and is necessary.
• Inadequate Accessibility: When a person with a disability is disadvantaged due to a lack of accessibility measures.
• Harassment: Conduct that violates a person’s dignity and is related to discrimination grounds such as sex, gender identity, ethnicity, religion, disability, sexual orientation, or age.
• Sexual Harassment: Conduct of a sexual nature that violates someone’s dignity.
• Instructions to Discriminate: Orders or instructions to discriminate in any of the above manners.

Prohibition of Reprisals:

The Act also prohibits reprisals against employees or candidates for reporting breaches, participating in investigations, or rejecting/acquiescing to harassment or sexual harassment.

Workplace Safety Standards

Ensuring a safe work environment is a legal obligation under the Work Environment Act, with emphasis on eliminating risks and promoting health.

• Risk Assessment: Regular evaluations are required to identify workplace hazards, with systems in place to mitigate risks.
• Employee Participation: Employees should have opportunities to engage in discussions concerning health and safety initiatives.
• Training: Adequate safety training must be provided, empowering employees to conduct their tasks safely.

Workers’ Compensation

At this time, Vensure does not have workers’ compensation details available.

Labor Law Sanctions

• Employment Protection Act (LAS): This act regulates the terms of employment, including hiring, termination, and severance pay.
• Working Hours Act: Sets limits on working hours, overtime, and rest periods to ensure workers’ health and safety.
• Work Environment Act: Requires employers to provide a safe and healthy work environment.
• Discrimination Act: Prohibits discrimination based on gender, ethnicity, religion, disability, sexual orientation, and age.