Sweden: New Swedish legislation prolongs the period of statutory employment protection to include protection for employees until they reach 69 years of age

Statutory Swedish employment protection entitles employees to full protection until the month they reach 67 years of age, after which an employer may terminate the employment, subject to one month’s notice at the most and without the otherwise required need to present objective grounds for dismissal.

As of 1 January 2020, full statutory employment protection will be prolonged and by 1 January 2023 employees will be entitled to employment protection until they reach 69 years of age. In addition, the legislative changes will include a simplified procedure to terminate the employment of an employee who is no longer entitled to full employment protection, such as no requirement to consult with the employee’s trade union prior to dismissal, unless the dismissal relates to personal reasons. The legislative changes have been deemed necessary to adapt to increased average lifespans and hence increased pensions costs.