Nordics: European View on Employment Law

Published

Jul 11 2016

Written By

I am head of our Employment group in Stockholm, as well as co-head of Bird & Bird's International Employee Incentives & Benefits Group. With more than 25 years' experience in the employment law field, the advice I provide covers the full range of HR services.

Practices

Employment

Regions

Nordics

Countries

Employees across the Nordics generally have a good standard of education and are highly represented amongst successful technology companies. Collective Bargaining Agreements (“CBAs”) cover as much as 80% of the work force.

Background

The law across the Nordics is codified and case law helps to interpret these laws. Employment laws are mandatory to the protection of the employees and there is no employment at will. Mandatory law includes rules on acceptable grounds for dismissal. Any terms set by CBAs enjoy similar status to laws.

Did you know?

50% of the employees are female
Most of the workforce speak English and there is no obligation to translate policies or to provide bilingual employment agreements
Fathers take parental leave in the Nordics. It is also a common practice to share the leave amongst parents
A strong social security system exists in all countries; medical care is free or inexpensive
Very stable labour market with few strikes
Employees are typically hard working and loyal

Restructuring programmes: key issues

In Sweden obligation to consult with the trade unions before deciding to restructure (if there is a CBA in place); obligation to consult also exists in Finland but procedure is different to that in Sweden
Social selection criteria are normally applied; selection methods differ from country to country. The most drastic method is the “last in– first out” principle in Sweden
European rules on transfer of undertakings are implemented
There is no “one size fits all”; rules differ considerably between the Nordic countries

General employment

The main rule is that employment continues until further notice
Probationary periods and fixed term contracts are allowed
Restrictive covenants must be compensated for in Denmark and Sweden but generally not in Finland

This is part of the Bird & Bird: A European view on Employment Law series.

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