Employment contracts Sweden

What should an employment contract in Sweden include?

The following are the most crucial elements of every employment contract made in compliance with Swedish labor laws:

• Employer and employee information, including names, addresses, and contact information of both parties.
• Job position and role elaboration, including an overview of the position and a detailed breakdown of duties, responsibilities, and rights.
• Compensation structure, including salaries and entitlements to benefits.
• The employee’s work schedule, including the days and hours of work.
• Termination policies, including notice periods and potential severance compensation.
• Non-disclosure and confidentiality policies to safeguard preserving sensitive information.

The employer and the employee must carefully read, comprehend, and agree to the terms presented in the employment contract before providing their signatures.

What types of employment contracts exist in Sweden?

The most common types of employment contracts in Sweden are:

1. Employee contracts

Employee contracts can be divided into two main categories:

• Indefinite-term employment contracts: Under indefinite-term employment contracts, the employment continues until it’s terminated by one of the parties of the contract. These contracts are used to regulate permanent employment and, therefore, don’t specify the contract’s duration and end date. In order to terminate indefinite employment, the specific party must adhere to the notice period outlined within the contract or specified by relevant labor laws. 
• Fixed-term employment contracts: Under fixed-term employment contracts, the employment continues until the predetermined end date within the agreement. Fixed-term contracts are used to regulate temporary or seasonal employment arrangements and should outline the most important terms of employment. 

2. Project-based employment contracts

Project-based employment contracts are used to regulate arrangements for specific projects. Even though they are designed for the purpose of project-based work, these contracts typically fall under the category of fixed-term employment contracts. Except for the duration of the arrangement, project-based contracts also define key terms such as the scope of responsibilities, objectives, reimbursement, and similar conditions.

3. Freelance contracts

Freelance contracts are typically used by freelancers, independent contractors, and self-employed individuals who offer their services to companies, clients, and employers. Under this agreement, the service provider is not classified as an employee and isn’t entitled to regular employee benefits. Freelance contracts define terms such as the scope of service and responsibilities, duration, fees or payments, duties, rights, and other conditions.

How to hire employees in Sweden?

In Sweden, onboarding new employees requires employers to have an established legal entity, tax identification number, and local bank accounts.

Compliance with Sweden’s labor laws is also of utmost importance, covering areas such as minimum wages, working hours, employee benefits, and other important legal requirements.

For better efficiency in navigating administrative procedures, employers are advised to collaborate with international recruitment companies like Native Teams. Through our Employer of Record solutions, we’ll become responsible for your global payroll management, tax compliance, HR documentation, and various administrative obligations, allowing you to concentrate on the growth of your business.