If you’re considering getting a job in Sweden, it’s not only essential to know how to build your CV, cover letter and how to prepare for your interview but you’ll also need understand everything about job contracts if you want to make sure not to get stepped over.

Luckily, in this article I’ll talk about all things related to Swedish employment contracts, from the laws governing job contracts to the details you’ll need to negotiate with your new employer. Let’s begin!

Disclaimer: Swedifier.com provides content for informational and educational use only, and is not a source of professional legal or immigration guidance. Our insights stem from personal experience or research, not legal expertise. We hold no affiliation with government bodies and accept no liability for the precision or utility of the information provided. We are not legal experts and we advice you to consult with lawyers to satisfy all your questions regarding Swedish work contracts.

Swedish Employment Act

The Swedish Employment Act (Lag om anställningsskydd) is a crucial factor when it comes to work contracts in Sweden (for employees, not freelancers or business owners) as it sets the framework and establishes the standards for employment terms and conditions, which directly affect our rights and obligations.

Thus, as employees, we must learn all we can about this act as it could significantly impact our working life, from our job security to our work-life balance.

What It’s All About

I like to define the Swedish Employment Act as the rulebook that ensures employees are treated right, setting the standards for job contracts in Sweden. Think of it as the framework that outlines what’s okay and what’s not in the workplace.

How It Affects Job Contracts

As explained, this act has a big say in what goes into your job contract. It touches on everything from your work hours to your right to take a sick day without worrying about losing your job.

Here’s a quick breakdown I came up with about what it covers:

• Salary and Benefits: Even though Sweden doesn’t have a minimum salary, the act does demand that your employment terms are clearly outlined, making it easier to understand your tax obligations. What do I mean with this? Well, It asks that the terms and conditions of your employment—like your salary, benefits (i.e. parental allowance), and other compensations—are clearly outlined in your job contract which is key to figure out how much tax you owe.
• Notice Period: For employees, a minimum notice period of one month is required, regardless of the duration of their service. However, for employers, the required notice period varies depending on the length of the employee’s service. That’s how, for employees with more than two years of service, the notice period required by the employer increases from the minimum of one month up to a maximum of six months for those with ten years of service or more.
• Probation Period: The probation period in Sweden is regulated under the Employment Protection Act, allowing for a maximum of six months which is useful for the employer to measure the suitability of the employee
• Sick Leaves: In Sweden, employees are entitled to sick pay from their employer for the first 14 days of illness at 80% of their salary, after which a deduction known as “karensavdrag” may apply, reducing the amount slightly for the first week. This is to account for the “waiting day” or “qualifying deduction,” where no sick pay is given on the first day of illness. If an employee falls ill again within five days after the initial sick period, the sick leave periods are combined, continuing the compensation from where it left off. After the 14-day period, employees may qualify for compensation from the state, starting from day 15 onwards.
• Working Hours: The standard is 40 hours a week, but the act makes sure there’s flexibility and fairness in how those hours are set and compensated.
• Overtime: The Employment Act sets a legal framework for overtime, but the exact rates and the thresholds for when standard hours transition into overtime are often detailed in collective agreements. It’s common for the first few hours of overtime each week to be compensated at one rate, with additional hours or hours worked during nights and weekends compensated at a higher rate.
• Holidays and Other Leaves: Employees typically have the right to 25 paid vacation days per year. Parents are entitled to 480 days of parental leave for each child, with compensation from the Swedish Social Insurance Agency. On top of the standard parental leave, you also got the maternity leave which allows the mother to start her leave up to 60 days before the expected birth date while the paternity leave grants fathers 10 days off in connection with the child’s birth.
• Language: If you don’t speak Swedish (and say you’re a foreigner who just got a work visa) your employer should give you a translation of the job contract to make sure you’re able to understand what you’re signing

Elements of a Swedish Job Contract

I know, I know… Swedish job contracts can feel a little daunting, particularly if you’ve just turned from job seeker with no experience to a new employee.

But here’s the deal: it’s really all about getting a handle on the fundamentals. Honestly, once you get the hang of what goes into a Swedish work contract, you’ll find they’re pretty straight-forward.

Curious about the key components that form these work contracts?

Well, let me break down the essential elements you’ll find in any Swedish job contract for you then:

Disclaimer: This is just a general idea of what job contracts might be like in Sweden. Please, do consult with a legal expert if you want to make or read a job contract

1. Company’s and Your Details

The initial section of the employment contract for the position you have recently accepted will present information pertaining to the company.

This includes the company’s name, where it’s officially located, its phone number, and registration number.

The next part lists your full name, address, phone number and the your Swedish Personal Identity Number (Personnummer).

2. Employment Information

In the next section of the contract, you’ll find general information about the job position the contract is about.

In this section, you’ll normally find:

• Job Title: This field should specify the role or position for which the contract is being drafted. For example, “Marketing Manager” or “Software Developer.”
• Job Department: Here, you would specify the department where the employee will be working, like “Sales Department” or “Head Office – Stockholm.”
• Employment Type: This section has multiple options:
  • Permanent position: If the employment is a permanent role, you’ll see the start date of employment and no end date as it’s a permanent position
  • Fixed-term employment: This is for temporary roles that have a definite start and end date. In this section, you’ll see the start date and the final date of employment. If the fixed-term employment can be turned into a permanent position there could be an optional field where the possible end date is declared (“until further notice, but final date is ___.”)
  • Probationary employment: For those job position where the employment begins with a probationary period, the start and end dates of this period would be specified (the probationary period is maximum of 6 months).
• Reasons for time limit: If the employment is for a fixed term or there is a probationary period, this field is where you would explain the reason for the time limit. For example, it could be “completion of a specific project” or “maternity cover.”

3. Terms of Employment

This section talks about:

• The applicable collective agreement for your job position
• Type of employment: part time or full time
• Monthly salary (which will be defined depending on the applicable collective agreement)
• Tasks (the contract will outline what you’re expected to do. It’s like your mission statement, detailing your role and how you fit into the team.)

4. Additional Information

Here, you’ll find additional information about the job conditions such as:

• Applicable Collective Agreements: The contract will reference any relevant collective bargaining agreements.
• Working Hours: Specifies the number of hours per day and the applicable working days.
• Non-Working Days: Typically includes Labour Day, National Day, Midsummer Eve, Christmas Eve, and New Year’s Eve as recognized non-working days.
• Vacation Days: Details provided by the collective agreement, including the number of vacation days and the policy for carrying over days to the next year (minimum vacation days in Sweden is 25 days)
• Overtime and Overtime Pay: Information on overtime conditions as governed by the applicable collective agreement.
• Terms of Notice: Outlines the notice period requirements for both the employee and employer, based on the employee’s length of service.

5. Signatures

Here, you’ll find both yours and your employer’s signatures.

Types of Employment Contract in Sweden

In Sweden, there are several types of employment contracts, each with unique characteristics:

Tillsvidareanställning (Permanent Employment)

This is the most secure form of employment (a.k.a. unlimited contract) as it doesn’t have a set end date and offers stability for employees, often required by financial institutions when applying for loans.

Employees under a permanent contract are subject to a notice period, often ranging from one to six months, if termination is to occur for justified reasons. This period should be explicitly outlined in the contract to ensure clarity for both parties.

General and Special Fixed-term Employment (Allmän visstidsanställning/särskild visstidsanställning)

General Fixed-term Employment is a prevalent form of temporary employment in Sweden, designed to meet short-term needs within a specified timeframe.

Initially known as “Allmän visstidsanställning,” this contract type allowed employers to hire staff for temporary positions without the need to state a specific reason, making it a flexible option for managing workload peaks or project-based work.

However, changes introduced on October 1, 2022, have transitioned this employment form to “Särskild visstidsanställning” (Special Fixed-term Employment).

The update brings stricter regulations, requiring employers to justify the temporary nature of such positions based on specific conditions or circumstances. This shift aims at reducing employer discretion and enhancing job security for employees.

Example: An organization introduces a new digital transformation project expected to last 18 months. Given the project’s temporary nature and the need for specialized skills not required in the long term, the organization hires a project manager and several IT specialists under “Särskild visstidsanställning.” This contract type is chosen because it aligns with the legal framework designed to ensure that such temporary roles are clearly defined and justified, providing protections for the employees while allowing the employer to address specific project needs.

Specific Fixed-term Employment (Tidsbegränsad anställning)

“Tidsbegränsad anställning” refers to fixed-term contracts with clearly defined start and end dates.

These are utilized for various specific needs, including project work, or employing individuals beyond retirement age.

A significant feature of this employment type is its conversion to permanent status if the worker’s engagement exceeds two years within a five-year span, a measure to prevent the indefinite extension of temporary contracts.

Example: A retail company requires additional staff during the holiday season, from November to January, to manage increased customer demand. They hire sales assistants on “Tidsbegränsad anställning” contracts specifying the employment start and end dates. This use of specific fixed-term employment is justified by the clear, temporary increase in workload, which is a seasonal occurrence and has a predetermined duration, making these contracts the ideal solution for both the employer and the temporary staff.

Temporary Substitute Employment (Vikariat)

“Vikariat” is a Swedish term for a temporary employment contract specifically designed to fill in for another employee who is absent due to reasons like parental leave, sick leave, or sabbatical.

Confused with other types of fixed term work? Let me explain

“Vikariat” is exclusively used to temporarily replace an absent employee, whereas “Särskild visstidsanställning” and “Tidsbegränsad anställning” can be used for a variety of reasons, including project-based work, seasonal demand, or specific tasks that have a defined end date.

Seasonal Employment (Säsongsanställning)

Seasonal Employment (Säsongsanställning) in Sweden is tailored for work that is inherently tied to specific seasons or periods of the year, such as tourism in the summer or ski resorts in the winter.

The defining characteristic of Seasonal Employment is its alignment with specific seasons, making its duration naturally dependent on the timing of those seasons. For example, a summer job at a tourist attraction would only last for the duration of the peak tourist season.

How does Seasonal Employment (Säsongsanställning) compare to Temporary Substitute Employment (Vikariat), Specific Fixed-term Employment (Tidsbegränsad anställning), and General and Special Fixed-term Employment (Allmän visstidsanställning/Särskild visstidsanställning)?

Well, “Vikariat” is designed to cover for absent employees for various reasons, and “Särskild visstidsanställning” and “Tidsbegränsad anställning” could span any time of the year depending on the project or specific employment need.

Provanställning (Probationary Employment)

Probationary employment in Sweden, typically lasting no longer than six months, is a period used for the employer to evaluate the employee’s suitability for the role, and equally, for the employee to assess if the position meet their expectations.

This initial term is crucial for both parties to ensure a good fit before committing to a longer-term employment relationship.

If both parties are satisfied at the end of the probationary period, the employment usually continues under a permanent contract (If not terminated prematurely by the employer, it transitions into a permanent contract automatically)

Negotiation Before Signing a Work Contract in Sweden

Before signing any contracts, there are a few tips I’d like to give you regarding what you can negotiate out of a work contract in Sweden.

(Please, do not take the following as legal advice. Consult a Swedish contract lawyer before embarking in any contract negotiation)

Probationary Period

In Sweden, the probationary period concept within a work contract is legally standardized under the Employment Protection Act, allowing for a maximum duration of six months.

This period serves as a trial phase for both the employer and employee to assess suitability and performance.

Tip: It’s advisable to discuss the terms of evaluation and any specific goals or benchmarks to be met during this period. Understanding the conditions under which the probation can be deemed successful or the circumstances leading to termination can provide clarity and security.

Temporary vs. Unlimited Contract

The difference between temporary and permanent contracts in Sweden is significant, with permanent contracts not having a predefined end date, thereby offering more job security and typically more benefits.

Temporary contracts, on the other hand, are set for a specific duration or purpose, which is definitely more uncomfortable for employees as it gives them a tangible level of insecurity.

Tip: If offered a temporary contract, consider negotiating for a transition clause to a permanent position upon successful completion of the contract period or project. It’s also worth discussing potential benefits that might not automatically come with temporary positions.

Working Hours

As explained, Swedish law mandates an average workweek of 40 hours, with a maximum of 48 hours, including overtime. The Work Environment Act stipulates these standards to ensure employee well-being.

Tip: Clarify expectations about overtime, including compensation or time-off in lieu. If weekend work is expected, discuss how it’s compensated differently from regular hours.

Salary

Salaries in Sweden are typically paid monthly, and taxes are automatically deducted by the employer.

While there’s no nationwide minimum wage, salary standards are often set by collective agreements in various sectors to make sure all employees earn a good salary.

Tip: Ensure your contract includes not only the starting salary but also any expected increases, such as after the probationary period ends. Discuss bonus structures or other forms of compensation if applicable.

Paid Vacations

Sweden legally guarantees a minimum of 25 days of paid vacation annually.

Tip: If negotiating beyond entry-level, consider discussing additional vacation days as part of your package, especially if moving from a position where you had more vacation days.

Absence Due to Illness

Under the Swedish Sick Pay Act, employees are entitled to sick leave with 80% pay from the second day up to 14 days, covered by the employer. Notification on the first day of illness is mandatory.

Tip: While the standard conditions are quite fair, understanding the company’s policy on extended illness or long-term health issues can be part of broader negotiations around health benefits.

Notice Period for Employees and Employers

The standard notice period in Sweden is one month, but this can increase with the length of service for terminations initiated by the employer. For employees, the standard one-month notice applies regardless of service length, unless otherwise agreed.

Tip: Long-term employees may negotiate for longer notice periods from the employer to provide greater job security. Conversely, if flexibility is important to you, discussing the possibility of a shorter notice period for resigning might be beneficial.

You might be interested in: How to write a resignation letter in Sweden?

Frequently Asked Questions

What is minimum salary in Swedish work contracts?

Sweden does not have a government-mandated minimum wage.

Instead, wages are determined through collective bargaining agreements between employers and trade unions across different sectors. This means the minimum salary can vary significantly depending on the industry, job role, and level of experience required.

How many paid holidays in Sweden?

In Sweden, employees are entitled to a minimum of 25 days of paid vacation each year. This entitlement is part of the Annual Leave Act (Semesterlagen), which ensures all workers have the right to paid time off.

Beyond the statutory minimum, some collective agreements or individual contracts may offer additional vacation days.