Labor law course Terminate employment 3.19 Termination of employment for those aged 69 and over

Termination of employment for those aged 69 and over

Introduction

In Sweden, workers have the right to remain in employment until the age of 69. With increasing life expectancy and improved health among the population, this age may be raised in the future. However, at the time of writing, the age of 69 is the limit at which workers' right to remain in employment can be terminated without the same rules on dismissal being applied as for younger workers.

Right to work until 69

In most cases, these rules are rarely applied because the employee and the employer usually agree on when the employee will retire, or the employee themselves announce when they intend to retire. If the employee does not give notice and the employer wants to terminate the employment at 69, there are a number of rules that no longer apply after the employee reaches this age. For example:

  • The employer does not have to give objective reasons for the dismissal.
  • No specific rules on the form of the termination notice need to be followed.
  • The employer does not have to give the reason for the dismissal.
  • The dismissal cannot be declared invalid under the Employment Protection Act (LAS).

How the employment relationship ends

Employment can be terminated more easily once the employee has reached the age of 69. Nevertheless, it is strongly recommended to document the termination in writing. A written notice of termination should include the employee's details and specify the last day of work. At the age of 69, the employee is only entitled to one month's notice, which is different from the longer notice periods that apply to younger workers.

Most rules in LAS not applicable but other legislation

After the age of 69, many rules of the LAS no longer apply in the event of dismissal. Nevertheless, other legal rules apply, such as contract law rules (e.g. the unreasonableness rule in the Contract Act) and the Discrimination Act. It is therefore important to avoid dismissing an employee on the grounds that they are too old, as this may constitute age discrimination and lead to legal consequences.

Applicable legislation

Special provisions for workers aged 69 and over

33 §   The following provisions shall not apply to the dismissal of an employee who has reached the age of 69:
1. Section 7 on objective reasons for dismissal,
2. Section 8, second paragraph, on the content of a notice of termination,
3. Section 9 on the employer's obligation to state the grounds for dismissal, and
4. Section 34 on annulment of dismissal.
Law (2022:836).

33 a §   In the event of dismissal of an employee who has reached the age of 69, Section 30 on notification, notice and the right to deliberation shall apply, unless negotiations pursuant to Sections 11-14 of the Act (1976:580) on Co-determination in Working Life have been held in the matter. Law (2019:529).

33 b §   An employee who has reached the age of 69 is not entitled to a longer period of notice than one month, nor does he or she have a right of priority under sections 22, 23, 25 or 25a.
Law (2019:529).

33 c §   In the case of dismissal of an employee who has reached the age of 69, the provision in Section 35 on invalidation does not apply. In this situation, a notice under section 19, second paragraph, does not need to contain information on what the employee must observe if the employee wants to claim that the dismissal is invalid.
Law (2019:529).

33 d §   For an employee who has reached the age of 69, a special fixed-term employment contract or a temporary employment contract does not become an employment contract of indefinite duration under section 5a. Law (2022:836)