Labor Laws
Sweden
The Co-Determination Act in Sweden

The Co-Determination Act in Sweden

1. What is the purpose of the Co-Determination Act in Sweden?

The Co-Determination Act in Sweden regulates the relationship between employers and employees by giving employees and their organisations the right to information, negotiation, and influence over workplace decisions. It aims to ensure employee participation in key employment and business-related matters.

2. Which employers and employees are covered under the Co-Determination Act in Sweden?

The Act applies to most employer–employee relationships in Sweden, including individuals who perform work under employee-like conditions. Certain non-profit, religious, political, or opinion-forming activities are partially exempt where the Act would conflict with their core objectives.

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3. What does the right of association mean for employers in Sweden?

In Sweden, employers must respect employees’ right to join, participate in, or form trade unions. Employers must not disadvantage employees because of union membership or attempt to prevent union activity, as any such action is considered an unlawful infringement.

4. When must employers negotiate with employee organisations in Sweden?

Employers in Sweden must negotiate before making significant changes to operations or employment conditions, including reorganisations, layoffs, or major workplace changes. This obligation applies both to employers bound by collective agreements and, in certain cases, to those who are not.

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5. What information must employers share with unions in Sweden?

Employers in Sweden must regularly inform employee organisations about business development, finances, production, and personnel policies. They must also allow unions access to relevant documents when necessary to protect employees’ collective interests, provided it does not cause unreasonable burden.

6. How do collective bargaining agreements work under the Co-Determination Act in Sweden?

A collective bargaining agreement in Sweden is a written agreement between an employer or employer organisation and a trade union. Once signed, it is binding and employers may not enter into individual agreements that contradict its terms.

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7. What happens to collective agreements during a business transfer in Sweden?

When a business is transferred in Sweden, existing collective bargaining agreements generally continue to apply to the new employer for up to one year, unless they expire or are replaced. This ensures continuity of employment conditions for transferred employees.

8. What restrictions apply to industrial action under the Co-Determination Act in Sweden?

Industrial actions such as strikes or lockouts are restricted in Sweden when a collective bargaining agreement is in force. Actions aimed at changing an existing agreement or influencing legal disputes are unlawful, except in specific, legally permitted situations.

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9. What role does the National Mediation Office play in Sweden?

The National Mediation Office in Sweden mediates labour disputes, promotes effective wage formation, and may appoint mediators during industrial conflicts. It can also require parties to postpone industrial action and impose fines if notice obligations are breached.

10. What penalties can employers face for violating the Co-Determination Act in Sweden?

Employers in Sweden who breach the Act may be required to pay damages for financial and non-financial harm. Violations involving unlawful industrial action, failure to negotiate, or breaches of confidentiality can also result in fines and court-ordered sanctions.

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