April 11, 2024

Starting a business in Sweden

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What are the most important things to keep in mind when starting a business in Sweden from an employment perspective?

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The most important thing to keep in mind is that the Employment Protection Act in Sweden does not consider an employment contract to be between to equal parties. The considers the employee to be the weaker part, hence the employee is therefore legally protected. There are many rules and regulations and formal procedures in place that requires knowledge about detail processes. For example we have the Co-Determination Act that requires the employer to negotiate prior to taking important decisions regarding their business, and the employer is obliged to negotiate with the Union if an employee is a member of the Union. This takes time and requires legal knowledge about employment law regulations.

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