SWEDEN Law and Practice Contributed by: Robert Stromberg, Advokatfirman Cederquist KB
The Co-Determination Act contains the general pro - visions governing the relationship between employ - ers and the trade unions in areas such as associa - tion, information, negotiations, industrial actions and labour stability obligations. According to the Co-Determination Act, an employer has certain consultation and information obligations towards the trade unions. For example, prior to any decision to reorganise the business or terminate employment contracts, the employer must call for and conduct consultations with the trade unions under the applicable CBAs (at both local and national levels, if applicable). Even if a CBA does not bind the employer, they are obliged to consult the trade union of which the employee concerned is a member regarding the planned reorganisation and potential redundancies. The Act also contains certain interpretation regula - tions, to the benefit of the trade unions. Generally, these rules give the trade union the right to interpret the CBA until the matter has been finally decided by the court, and are therefore important in the case of disputes. 6.2 Employee Representative Bodies The local trade unions usually elect one or more repre - sentatives to represent the employees at a workplace, under the provisions of the Trade Union Representa - tives Act. Employees who are trade union representa - tives may not be prevented from carrying out union work during working hours, may not be discriminated against due to their union activities and are entitled to a reasonable leave of absence to carry out their union activities. The local trade union representative shall manage questions relating to labour at the spe - cific workplace – issues of salary, work environment, reorganisations, etc, are normally covered. A trade union representative enjoys extended protection in a redundancy situation. The Board Representation Act entitles employees of private companies that are bound by CBAs and have at least 25 employees to appoint two ordinary and two deputy employee representatives to the board of directors. Employees of companies that have at least 1,000 employees and are engaged in different industries are entitled to appoint three ordinary and
three deputy employee representatives to the board of directors. Moreover, Sweden has implemented the European Works Council Directive (Directive 2009/38/EC) and the Directive establishing a general framework for informing and consulting employees in the European Community (Directive 2002/14/EC). Lastly, in a workplace where at least five employees are regularly employed, one or more safety repre - sentatives should be appointed, following the Work - ing Environment Act. If a collective bargaining agree - ment binds the employer, safety representatives are appointed by the trade union; if not, they are appoint - ed by the employees. 6.3 Collective Bargaining Agreements The Swedish system is based on the principle that law and CBAs together shall provide a comprehensive framework. Through membership in an employers’ organisation, the employer is bound by the CBAs applicable to that organisation. The employer is also obliged to apply the terms and conditions of the CBA to employees who are not members of a trade union. It is also possible for an employer to sign a CBA directly with one or more trade unions. Once a collective bargaining agreement has been entered into and is in effect, an obligation to refrain from industrial action comes into effect and prohibits strikes or lockouts. Breaking the peace obligation will incur liability for damages on the breaching party.
7. Termination 7.1 Grounds for Termination
A dismissal must be based on objective reasons, which are not specifically defined by statute or case law, but can pertain to either redundancy or the employee’s personal circumstances. Redundancy covers all reasons attributable to the employer, such as reorganisations, shortage of work or the economic situation of the employer, while personal grounds are
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