Employing staff

1. How do I employ someone?

Employing someone is both about finding the right person for your business and following the rules that apply to you as an employer. The conditions of employment are agreed by you and the employee, taking into account applicable law and collective agreements.

When you employ staff, you should register as an employer with the Swedish Tax Agency. Every month, the Tax Agency sends out tax returns as documentation for payment of employer contributions and income tax for your employees.

2. What forms of employment can I choose?

There are two forms of employment - indefinite-term employment and fixed-term employment. Indefinite-term employment is the same as permanent employment. There are four different types of fixed-term employment - general fixed-term employment, temporary substitute employment, seasonal employment and fixed-term employment for employees who have attained the age of 67.

3. Do I have to write a contract of employment?

No. The contract of employment does not have to be in writing; a verbal contract is also valid. However, the Swedish Employment Protection Act states that an employer shall provide the employee with written information of all the employment terms and conditions that apply if the employment lasts more than three weeks. This written information must be submitted to the employee within one month. A written contract of employment is always preferable.

4. What is a collective agreement?

A collective agreement is a written agreement between an employers' organisation/an individual employer and an employees' organisation which defines the conditions of employment that will apply at the workplace. In many cases, a collective agreement replaces the statutory conditions that normally apply.

5. Can I employ staff whatever the legal form of my business?

Yes.

6. Do I have to pay social security contributions and tax for my employees?

Yes. You must register as an employer with the Swedish Tax Agency which will then send you a tax return every month. You report and pay employer contributions and tax deducted for employees to the Tax Agency.

7. What period of notice is an employee entitled to?

If the employee gives notice of termination, the period of notice is always one month in accordance with the Swedish Employment Protection Act, unless a longer period of notice has been agreed.

If the employer gives notice of termination, the following periods of notice apply:
• 0 - 2 years employment: 1-month period of notice
• 2 - 4 years employment: 2-month period of notice
• 4 - 6 years employment: 3-month period of notice
• 6 - 8 years employment: 4-month period of notice
• 8 - 10 years employment: 5-month period of notice
• 10 or more years employment: 6-month period of notice.

Probationary employment
In accordance with the Swedish Employment Protection Act, probationary employment may last for up to six months. Both the employer and the employee may terminate the probationary employment at any time during this period. The employer is obliged to notify the employee at least 14 days in advance. The employee must notify the employer of his or her decision to terminate the probationary employment.

Fixed-term employment
Fixed-term employment lasts until the employment period expires. Neither the employee nor the employer can normally terminate this type of employment in advance. However, agreement may be reached on early termination of the employment with a specific period of notice.

Bear in mind
You and your employees may agree on longer periods of notice than those defined in the Swedish Employment Protection Act. However, you may not agree on a period of notice shorter than one month for indefinite-term employment. If you are bound by a collective agreement, other conditions may apply to you and your employees.

8. Is an employee entitled to leave of absence to start up a company?

Yes. An employee is entitled to leave of up to six months to start a company.

9. How do I insure my employees?

If you are bound by a collective or tie-in agreement, you must take out collectively agreed insurance for your employees.

Even if you are not bound by a collective or tie-in agreement, you may still take out collectively agreed or similar insurance for your employees. You take out this insurance with Fora or Collectum.

For other types of insurance, contact your insurance company.

10. How do I calculate the cost of an employee?

The cost of an employee does not consist of salary alone. As an employer, you pay social security contributions and usually holiday pay as well as the salary. In some cases, you are also liable to take out certain insurance policies for your employees. Many employers decide to provide insurance of their own accord as an employee benefit.