Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q2 2020 Global Guide Quarterly updates   Download full Q2 2020 Global Guide Quarterly

Fourth Level of State Aid Introduced

New Legislation Enacted

Author: Anna Jerndorf, Partner – Advokatfirman Törngren Magnell KB

Since March 2020, employers may temporarily apply special provisions on short-term work during 2020 and receive state aid due to the Covid-19 outbreak. Under a three-fixed program, employers may reduce working hours at different levels, resulting in employer’s costs being reduced by 19, 36 or 53 percent. For the period between May and July 2020, state aid will also be provided at a fourth level, where the working hours can be reduced further, resulting in a 72 percent cost reduction for the employer.

New Restructuring Support Adopted by Parliament

New Legislation Enacted

Author: Anna Jerndorf, Partner – Advokatfirman Törngren Magnell KB

A new support to companies, known as the “restructuring aid” (Sw. Omställningsstöd), has been implemented for companies with a significant loss of turnover due to the COVID-19 outbreak. The support is called “restructuring aid” (Sw. Omställningsstöd), the size of which depends on how large the loss of turnover the company has had and can vary between 22.5 and 75 percent of the company’s fixed costs, such as rent, leasing fees, electricity, etc. (salary costs excluded) for March and April 2020. The maximum amount is set to SEK 150 million per company/group. The new law and ordinance entered into force on June 22, 2020. Applications must be made before August 31, 2020.

Temporary Sickness Benefit for Employees in Certain Risk Groups

New Legislation Enacted

Author: Anna Jerndorf, Partner – Advokatfirman Törngren Magnell KB

On June 23, 2020, the Swedish Parliament passed a bill entitling persons in certain risk groups to receive sickness benefit (paid by the State) for staying at home for preventive purposes if they are unable to work from home or temporarily receive other work tasks where the risk for COVID-19 infection is limited. Certain relatives living in the same household in a risk group may also receive this benefit, as well as parents to children that have recently been seriously ill. The temporary sickness benefit applies from July 1 to September 30, 2020.

Inquiry on Modernization of the Swedish Labor Law Presented

Proposed Bill or Initiative

Author: Anna Jerndorf, Partner – Advokatfirman Törngren Magnell KB

A special investigator presented its inquiry on a modernization of the Swedish labor law on June 1, 2020. One of the most noticeable proposals in the inquiry is to increase the exemptions from the rules on the order of selection for redundancy. As proposed, all employers – regardless of size – would be able to exempt five employees from the order of selection. The inquiry also proposes to require employers to offer their employees reasonable skills development as part of their employment. Further, there are also proposals that will result in lower and more predictable costs for terminations (with notice), especially for small companies. The new rules are proposed to enter into force on January 1, 2022.