Are your employment contracts legal and comply with the recommendations?
For many employers, employment contracts are something that is drawn up frequently. They consist of a series of templates that have been used for a long time within the company and perhaps rarely reviewed. They are often forgotten and assumed to be of good quality, as there may rarely be any problems with them. Until a dispute arises and the content of the employment contract is put to the test. The employment contract is an important document. However, it should in principle be as clean and simple as possible. With this guide, you can get help and see whether your employment contracts comply with the Employment Protection Act, but also with our recommendations.
Oral employment contracts versus written ones?
There is no requirement that employment contracts be in writing. Oral contracts also apply. Although this is not recommended as it is difficult to demonstrate what has been agreed. However, there is a requirement that the employer must provide the employee with written information as follows as soon as possible, but no later than the seventh calendar day after the employee starts. The recommendation is therefore to incorporate the written information into the employment contract so that you have created a process for complying with these rules while at the same time providing you with clear employment contracts.
Remember:
If you are bound by a collective agreement, the collective agreement may state what the employment contract should look like. For example, this is the case at the time of writing for hotels and restaurants.
Minimum
Section 6C of the Employment Act contains rules on what information must be provided in writing to the employee. These rules are in practice applied to what should be included as a minimum in the employment contract.
What must be included:
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- the name and address of the employer and the employee, the date of commencement of employment and the workplace or, if there is no fixed or main workplace, information that the work will be carried out in different locations or that the employee may determine his or her own workplace,
- a brief specification or description of the employee's duties and job title or job title,
- whether the employment is permanent or for a limited period of time or whether it is a probationary period, and
a) in the case of permanent employment: the notice periods that apply,
b) in the case of employment for a limited period: the end date of the employment or the conditions that apply for the employment to end and whether the employment concerns a special fixed-term employment, temporary work or seasonal work,
c) in the case of probationary employment: the length of the probationary period and any conditions for the probationary employment,
- starting salary and other salary benefits, which should be stated separately, and how often and in what manner the salary will be paid,
- the length of the employee's normal working day or work week or, if this cannot be determined due to the employer's arrangement of working hours, information about the working hours of the employment in another way,
- what shall apply to overtime or additional work and compensation for such work, where applicable,
- minimum deadline for notification of the arrangement of regular working hours and on-call hours and, where applicable,
a) that the accommodation will vary between different times and days,
b) rules for shift change,
- in the case of workers hired out by temporary employment agencies: information on the name and address of the client companies,
- information about the right to training provided by the employer, where applicable,
- the length of the employee's paid vacation,
- the provisions that the employer and employee must follow when either of them wishes to terminate the employment relationship,
- that employer contributions are paid to the state and information about the social security protection provided by the employer, and
- applicable collective agreement, if applicable.
Recommended to also include in the employment contract
- That the employee has read the employer's personnel handbook, including the policies contained in the handbook.
- A set-off agreement, where the employee agrees that the employer may make salary deductions for claims that arise in the job. However, the agreement should be clear, unambiguous and limited.
- That the employee has read the employer's personal data policy, which is attached to the employment contract
- That the employee signs a confidentiality agreement
- If a non-competition or non-solicitation clause is relevant, include these.
Keep it simple
There is a reason to keep the employment contract as simple as possible. For example, having a job description in the employment contract can lead to discussions about how the world is changing.
About the employment forms
There are five types of employment in Sweden. In case there is doubt about which type of employment has been agreed upon, it will be presumed to be a permanent employment.
Permanent employment
The employment is for an indefinite period. In order for it to end, notice of termination from either party is required. When the employer wants to terminate, special grounds are required, such as lack of work or personal reasons.
Special fixed-term employment
Runs from one date to another. After 12 months calculated over a five-year period or if the employee has had other fixed-term employment with the employer. If the employee has had three or more fixed-term employments within the same month, the time between them is counted as if they had run consecutively.
Substitute
Temporary employment is used when regular employees are absent, for example due to parental leave. After two years of a five-year period, the temporary employment becomes permanent employment.
Seasonal employment
Seasonal employment is common in agriculture, where work can in some cases only be performed during part of the year. This is precisely the requirement for employment.
Probationary employment
Probationary employment can be used where the intention is to employ an employee permanently. But where there is a need to test their qualifications and skills. A maximum of six months.
Checklist for employment contracts
- Are you bound by a collective agreement or a temporary agreement? Check if there are rules in the agreement regarding how the employment contract should be structured.
- Compare your employment contracts with the 6C section of the LAS. Is not all the information included? Do you have a different process for how the employee should receive this information in writing?
- Include a clause stating that the employee has read the employer's personnel handbook and associated policies, if the employer has one, which all employers should have.
- Don't forget to provide a copy of the employer's privacy policy.
- Have the employee sign a confidentiality agreement at the same time.
- Consider non-compete clause.
Good luck, are you a manager or employer and have any questions? Don't hesitate to get in touch.
Christoffer Lewinowitz Employer Lawyer
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