The government recently decided to appoint a special investigator to explore the possibilities of modernising some of the basic regulations of Swedish labour law. The investigation aims to explore how Swedish labour law can be modernised and adapted to meet current market needs while maintaining the fundamental and historical balance between the various parties to the labour market.
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 issued two decisions which further outline the principles for determining the 'real' employer when an employer-employee relationship is unclear. The decisions confirm that the court still places a strong emphasis on protecting employees' rights. Thus, in the interests of full transparency, employers must fulfil their obligations by ensuring that employees have full knowledge of any agreement between their employer and another company that performs employment-related functions.
Sweden is one of the most secular countries in the world with full freedom of religion. Further, freedom of conscience is a right protected by the European Convention on Human Rights. However, domestic law recognises no right to conscientious objection. A recent Labour Court decision has clarified from an employment law perspective whether freedom of conscience gives healthcare professionals a right to conscientious objection.
Businesses considering purchasing all or part of a business in Sweden often make several economic and organisational considerations regarding the assets and liabilities of the business being acquired. Employment-related issues and how any redundancies can be handled may also be contemplated. Despite such considerations, buyers commonly disregard entirely, or at least underestimate, the importance of employment regulations in connection with a transfer of undertakings.
Recent case law confirms that the Swedish courts uphold the general principle that awards finalise a dispute between parties. In order to successfully challenge an award, the challenging party must prove not only that the procedural error likely affected the outcome of the award, but also that the error is of essential importance.