Introduction
The labour market in Sweden is to a great extent self-regulated by employers’ organisations and trade unions. The Swedish labour law model is based on civil rules that govern most aspects of the employer-employee relationship. Mandatory laws and regulations in collective bargaining agreements provide a comprehensive framework for the terms and conditions of employment. Disputes are finally settled by the Swedish Labour Court, which is the final instance in employment related disputes. However, the majority of disputes are solved by the parties on the labour market through consultations and negotiations.
Legal framework
Swedish employment law is regulated by statutes and case law, as well as by collective bargaining agreements concluded with trade unions. Collective bargaining agreements are of great importance and they often contain regulations deviating from statutory provisions to better suit the type of business where they apply. Regulations regarding employment protection are found in the Employment Protection Act. Employees whose duties and conditions of employment are such that they may be deemed to occupy a managerial or comparable position are excluded from the Employment Protection Act.
The Co-Determination Act contains the general provisions governing the relationship between employers and trade unions in such areas as right to association, information, negotiations, industrial actions and labour market stability obligations. Other essential statutes are, for example, the Discrimination Act, the Annual Leave Act, the Personal Data Act, the Parental Leave Act, the Working Hours Act, the Work Environment Act and the Sick Pay Act.
New Developments
On 1 October 2025, a new Unemployment Insurance Act entered into force, introducing several new principles to the Swedish unemployment insurance system. One of the most significant changes is that the eligibility and compensation for unemployment insurance benefits is now based on income from work instead of hours worked, which is expected to result in more people qualifying for unemployment benefits. Another key change is that the length of an applicant’s membership in an unemployment insurance fund (Sw. A-kassa) will influence the level of compensation the applicant may receive. Under the previous regulations, membership in an unemployment insurance fund only affected the level of compensation if the applicant had been a member for at least twelve months. Applicants who had been members for less than twelve months received unemployment benefits at the same base level as applicants with no membership period at all. The new regulations entail an intermediate compensation level for applicants who have been members of an unemployment insurance fund for at least six months, but less than twelve months. The new regulations apply to decisions on unemployment benefits from 1 October 2025, but those who were already receiving unemployment benefits at that time remain subject to the previous regulations.
As of 1 January 2026, the scope of temporary parental benefit for the care of a child (Sw. VAB) is expanded. Parents may receive such temporary parental benefit, and corresponding leave from work, not only when caring for a sick child at home, but also in the following situations:
- where a parent needs to be present at the child’s preschool or school in order to train staff what care the child needs (for example due to illness or disability);
- where the child has an illness or disability that requires a parent to attend meetings with the preschool or school concerning the support the child needs to be able to complete their schooling; and
- where a parent attends meetings with social services to investigate whether the child (under 18) needs protection or support under the Social Services Act, for example following a report of concern.
In all of the situations above, the child does not need to participate in the relevant meeting. In the latter two situations, more than one caregiver (such as both parents or a foster parent) may receive temporary parental benefit for the same meeting, subject to the general conditions for benefit.
A new Swedish law entered into force on 1 March 2026, granting municipalities expanded authority to access information from the criminal records register – and, in certain cases, also the register of criminal suspicions – before employing an individual. The purpose of the legislation is to prevent infiltration and undue influence, increase safety and reduce the risk of individuals being exposed to crime within municipal operations. The rules apply to persons who are to be employed in positions involving working in the home of elderly persons or adults with disabilities, working with children, or being appointed to certain senior positions within municipalities.
In autumn 2025, the Swedish Government announced further changes to the work permit requirements applicable to citizens of non-EU countries. One of the key conditions for obtaining a work permit is the maintenance requirement, meaning that the employment must provide the applicant with sufficient income to support themselves. This requirement has been tightened in recent years. The Government has now proposed stricter work permit rules aimed at countering fraud, labour market crime, and the exploitation of migrant workers within the labour immigration system. The proposal includes raising the salary threshold for work permits so that, as a main rule, the salary must amount to at least 90% of the median salary in Sweden, rather than the current 80%. It also introduces a requirement for comprehensive health insurance. In addition, it is proposed that the Government will be empowered to grant exemptions for certain occupational groups and exclude certain occupations from the possibility of being granted a work permit. The legislative amendments are proposed to enter into force on 1 June 2026.
A Swedish government inquiry has proposed a new standalone Act on Platform Work to implement Directive (EU) 2024/2831 on improving working conditions in platform work. The proposed act introduces a presumption of employment for persons performing platform work where, in substance, the platform organises the work and exercises direction and control over how it is carried out. It also contains detailed rules on algorithmic management, data protection, transparency, communication with workers and trade unions, and supervision and sanctions. The proposed legislation is intended to reflect the structure of the Directive and to be interpreted in conformity with it. The proposed new Act is intended to enter into force on 2 December 2026.
The EU adopted the Pay Transparency Directive (EU) 2023/970 in spring 2023 which aims to eliminate the gender pay gap and enforce the principle of equal pay for equal work, or work of equal value. In January 2026, a Swedish government bill was presented proposing how to implement the Directive, building on the existing requirement under the Discrimination Act for annual pay surveys while adding new obligations. These include a new chapter on pay transparency in the Discrimination Act, enhanced rights for applicants and employees to access pay information, a prohibition on employers asking applicants about previous salaries, and an obligation to inform employees about pay rules and practices. Pay surveys are proposed to be expanded to cover pay developments in connection with parental leave and similar absences, and employers with at least 100 employees will regularly report gender pay gap data to the Equality Ombudsman (Sw. Diskrimineringsombudsmannen) for publication. The bill also proposes new sanctions such as damages for certain breaches and an administrative fine for failure to provide information to the Equality Ombudsman. The government bill has not yet been adopted. The legislative proposals were originally intended to enter into force on 1 July 2026. However, the Swedish Government has since announced that it considers the Directive, in its current form, to be too administratively burdensome and insufficiently adapted to Swedish conditions. The Government wants the implementation deadline for the Directive to be postponed and that the Directive should be renegotiated with a view to simplifying the rules. For the time being, the Government does not intend to submit any implementation bill to the Swedish Parliament.
