Whether an employee can make use of previously attained know-how, knowledge and skills in a new position is largely governed by the Trade Secrets Act, as well as the particular circumstances at hand and the employee's actions. In a recent case, the Labour Court departed from the principles set out in its earlier case law and implemented a new method for calculating damages in trade secret employment cases.
Due to recent changes to the Posting of Workers Act, foreign employers may need to follow Swedish employment conditions for posted employees to a greater extent than before. In addition, Parliament has approved a proposal to introduce a so-called 'economic employer' concept in Sweden. Consequently, many foreign employers will also need to register with the Swedish Tax Agency in order to comply with Swedish tax reporting standards on a monthly basis.
As in every other part of the world, the COVID-19 outbreak is affecting Swedish society in numerous ways. This article presents a selection of Swedish employment law-related responsibilities and possibilities for employers to be aware of in view of the effects of COVID-19, particularly with regard to their work environment responsibilities and the Short-Time Work Allowance Act.
Workplace harassment between employees raises questions regarding employers' responsibility to maintain a healthy and sustainable work environment and what actions can be taken against disruptive employees. Employers and their representatives have an extensive responsibility to maintain a positive work environment, including assessing, preventing and acting against risk factors such as harassment.
Company leaders such as CEOs are expressly excluded from the scope of the Employment Protection Act. Therefore, the parties to a CEO's employment agreement must agree its terms. However, the reasonability and validity of the agreed terms and conditions may be assessed or determined by the Swedish courts. Given the lack of applicable law in this area, the parties to a CEO's employment agreement must agree on the terms relating to both active employment and termination (by either party).
The Labour Court recently reviewed whether actions conducted by the employees of a private waste collection and transportation company were illicit collective strike actions. According to the court, the employees had refrained from performing their work tasks in order to pressure the company into ending the demands to conduct an inventory of keys. This was a stoppage of work and an illicit collective strike action, since it had not been duly decided by the trade union.
Companies and individuals acting on the Swedish labour market should be aware of the delimitation in law between consultants and employees. Whether an individual is to be considered a company consultant or an employee will determine the applicability of employment protection and could have significant tax implications affecting both companies and private individuals.
The legislature recently amended the law known as 'Lex Laval', according to which the right to conduct collective actions against foreign labour stationed in Sweden has been limited. The amendments in Lex Laval, which entered into force in June 2017, bring expanded rights for Swedish trade unions through collective actions by demanding that workplaces with foreign labour be covered by Swedish collective agreements.
Foreign employees may face expulsion if their employers fail to comply with certain employment terms in collective agreements. The Aliens Act stipulates that a foreign citizen who has been offered employment in Sweden can be granted a time-limited work permit, provided that the employment enables the employee to provide for him or herself. The permit will be revoked if the legal requirements are no longer met – for example, if the employment terms are inferior to the relevant collective agreement.