The biggest labour market reform in 40 years

Publicerat 2022-10-19

New historic, Main Agreements on skills development, transition and employment protection were concluded in 2022 by the social partners as a result of national cross-sectoral negotiations. The Main Agreements have come into force on October 1st.

In short, the agreements contain three parts:

• More flexible rules for companies to retain the right skills in the event of redundancies and greater predictability in legal disputes about termination of employment due to personal reasons.

• Increased employability for all workers through enhanced opportunities for skillsdevelopment and retraining.

• Greater employment protection for workers in atypical employment, such as part-time and fixed-term contracts, as well as performing agency work.

New legislation underpinning the labour law reform, in line with what the social partners had demanded, was adopted by the Swedish Parliament in June 2022, including a new public transition study aid aimed at employees who are established in the labour market.

A transition study aid is put in place with very generous conditions. On top of that, a new collectively agreed financial study aid is established which will give the individual the right to financial support for both shorter and longer courses to develop skills, both while in employment and in between jobs.

This will bring an important benefit for the job security of the employees as it will improve their possibilities to up- or re-skill in the labour market. It will also benefit the companies in terms of a more productive and skilled work force.