New requirements for employment contracts on the way

Pursuant to the new proposal submitted by the Swedish government, working conditions for employees will become clearer and more predictable as part of the implementation of the EU rules.

Although Swedish law is already largely compliant with the new EU rules, certain parts of the EU directive trigger a need for changes. According to the proposed rules, it is expected that the changes will already enter into force on 29 June 2022. The new rules will only apply to employment contracts concluded after that date.

Information obligations expand and deadlines are shortened

Going forward, the proposed rules will first of all expand the scope of the information requirements. That means that the Swedish Employment Protection Act will apply to a larger group than before, including employees in managerial positions.

Moreover, the level of detail of information to be provided to the group, will also expand. Pursuant to the proposed rules information must, among other things, also include:

• Place of work although there is no permanent or main place of work (e.g., description of different workplaces or that the employee decides where the work is to be carried out)
• Conditions for the probationary period, if relevant (e.g., description of the length of the agreed probationary period and other conditions)
• Right to continued education, if relevant (e.g., description of free mandatory training, which the company is required to provide)
• Details on the salary payments (e.g., description on details on the currency, payment arrangement, overtime entitlements)
• Termination terms (e.g., description on the termination procedure, notice periods and formal requirements, if any)
• Details on working time, when working time varies (e.g., description on standard working day or week, shift changes or information on unpredictable work patterns)

Deadlines for when this information must be provided are also shortened. Under the current rules, the deadline is one month. Under the proposed rules, the deadline will be shortened to seven days for most of the information but remain one month for certain types of additional information.

IUNO’s opinion

These new rules will require most companies to reassess employment contract templates, to ensure compliance with information obligations. Failure to comply with information obligations may trigger claims for compensation and so, it is important to ensure that templates are compliant.

IUNO recommends that companies follow the proposed changes closely, to have clear information on how the proposed changes should be implemented on a practical level. Companies will especially have to consider the information to be provided for employees without permanent workplaces or employees who work with unpredictable work patterns. That means that the new rules also especially target platform workers.

[Proposal referred to the Swedish Council on Legislation for consideration of 20 January 2022: Implementation of the working conditions directive]