News

Summary of employment related news in Sweden as of January 2021

January 19, 2021 Corona/Covid-19

Short-time work, a new pandemic law and pending changes to the Employment Protection Act. Here is the latest employment related news in Sweden.

In March 2020, the Swedish government implemented short-time work in order to support businesses affected by COVID. Short-time work means that employers can reduce their employees’ working hours by up to 80% and receive financial support from the government to compensate for a significant part of the costs for retaining the employees while the employees keep most of their salaries. The short-time work legislation was prepared quickly. It is thus conceived as unclear and challenging to interpret and apply in practice for both authorities and companies. The system will be in place at least until June 2021.

The government has also implemented several other employment related regulations during the COVID pandemic. For example, currently the employer cannot, as usual, require sick employees to present a doctor’s certificate from day eight of their sickness in order to receive sick pay. In addition, a new pandemic law was adopted on 8 January 2021. It is intended to make it possible to more effectively prevent the spread of COVID by allowing the government to close businesses such as stores, gyms and shopping malls.

Apart from the COVID news, the most significant recent employment related event is the pending modernisation of the Swedish Employment Protection Act (the “EPA”). Recently some of the major Swedish social partners – employer organisations and trade unions – presented an agreement that is expected to result in a revision of parts of the EPA this year. The modernised EPA is expected to provide, amongst other things, greater predictability in relation to termination of employments for personal reasons, permit an extended number of exceptions from the order of selection for redundancy and simplify the transition from fixed-term employment to employment until further notice. Through the agreement, the social partners retained the so-called Swedish model, where the partners decide on regulation through collective bargaining agreements without government intervention.

DAC 6 – EU Directive concerning reportable cross‑border tax arrangements

DAC 6 is a EU Directive which entails that advisers are subject to a duty to notify the relevant tax authorities concerning their client’s cross‑border arrangements. The purpose of the information disclosure obligation is to combat tax evasion, tax fraud and tax avoidance.
June 04, 2020 Corona/Covid-19

The importance of continuous focus on compliance procedures in disrupting times

A large number of corporations will most certainly be severely impacted by the effects of the Covid-19 pandemic. The new challenges will impact companies’ compliance risks, which are likely to be different and, to a certain extent, increased. It is crucial that - also in disrupting times - internal compliance procedures are maintained and that new risks are identified and mitigated.
May 28, 2020 Corona/Covid-19

Options for employers to consider during the Covid-19 crisis to reduce labour costs

The outbreak of Covid-19 continues to have a material negative effect on a large number of companies and their businesses on the Swedish labour market and it has also led to considerable fluctuations on the financial markets. Because of these negative effects, businesses may need to proceed with redundancies if proper cost saving options are not implemented. We have summarised a couple of options that employers may want to consider.
May 15, 2020 Corona/Covid-19