Ending an employment relationship in Sweden requires careful attention to process. The Employment Protection Act (Lagen om anställningsskydd, or LAS) sets strict rules on when and how employers can terminate staff, and getting it wrong carries real legal risk. This guide covers the key rules global HR teams need to know before initiating any termination in Sweden.
Legal framework: the employment protection act
LAS governs the vast majority of employment relationships in Sweden. Its central rule is that indefinite-term (permanent) employees can only be dismissed for “saklig grund” — objective or just cause. Without it, a dismissal is unlawful regardless of how it’s handled procedurally.
Just cause falls into two categories: personal reasons (personliga skäl) and operational needs (arbetsbrist). For employers using an Employer of Record (EOR), only personal reasons apply — redundancy-based dismissals aren’t available under the EOR structure. Understanding which category applies to your situation determines everything that follows.
What counts as personal reasons
Personal reasons cover conduct and performance. Qualifying grounds include serious or repeated breaches of work duties, gross misconduct such as theft, harassment, or serious breach of trust, and failure to perform despite prior warnings. The key principle is that the conduct must make continued employment genuinely untenable.
Minor or isolated performance issues don’t typically meet this bar. Swedish law generally requires employers to issue warnings, give the employee a realistic opportunity to improve, and document the process before a termination on personal grounds can stand. A single incident of poor performance, without prior warnings or support, is unlikely to constitute just cause.
Types of termination
Sweden recognises several distinct ways to end an employment contract. Each has its own requirements, timelines, and consequences.
Termination with cause (uppsägning av personliga skäl)
This is the standard route for dismissing a permanent employee on personal grounds. It requires just cause, written notice, and compliance with the statutory notice period. The employer must follow a defined procedural sequence before serving notice.
Before issuing a termination notice, the employer is required to give the employee advance notice of the intended decision (varsel) at least two weeks before the notice of termination is handed over. The employee has the right to a meeting, and if they’re a union member, the union must also be notified and given the opportunity to negotiate. Skipping these steps can expose the employer to liability even if the underlying grounds are solid.
Summary dismissal (avskedande)
Summary dismissal allows immediate termination with no notice period. It’s reserved for gross misconduct so severe that the employer can’t reasonably be expected to keep the employee on even for the duration of a notice period. Examples include theft, violence, and serious breaches of trust.
The bar here is higher than for standard termination with cause. A pattern of performance issues or even a single serious breach won’t automatically qualify. Summary dismissal should only be used when the conduct makes continued employment objectively impossible.
Mutual termination agreement (avtal om ömsesidigt avslut)
Both parties can agree in writing to end the employment relationship on mutually agreed terms. This route offers the most flexibility: the parties can depart from statutory notice periods, negotiate severance, and set a custom end date.
Severance isn’t required by law under LAS, but employers typically offer it in mutual agreements to secure the employee’s cooperation and avoid disputes. Collective agreements may set minimum terms, so check what applies before finalising any deal.
Fixed-term contract expiry
Fixed-term contracts under the Särskild visstidsanställning (SAVA) framework end automatically on the agreed date. No notice is required, and no just cause is needed for the contract simply to expire.
There’s an important conversion rule to watch: if a fixed-term employee has worked under SAVA for more than 12 months within any 5-year period, the contract converts automatically to an indefinite-term contract. If you intend for the engagement to remain fixed-term, track total duration carefully. Early termination of a fixed-term contract by the employer requires just cause and triggers the standard LAS notice periods.
Employee resignation
Employees who resign must give written notice. The statutory minimum is one month, though a collective agreement or individual contract may set a longer period. There’s no statutory severance entitlement on voluntary resignation under LAS, but the employee is entitled to any accrued vacation pay on departure.
Notice periods
For employer-initiated termination, notice periods under LAS scale with length of service. These are statutory minimums; a collective agreement or employment contract may require longer notice.
| Length of service | Notice period |
|---|---|
| Under 2 years | 1 month |
| 2–4 years | 2 months |
| 4–6 years | 3 months |
| 6–8 years | 4 months |
| 8–10 years | 5 months |
| 10 years or more | 6 months |
During the notice period, the employee is generally expected to continue working. The employer can release the employee early by paying in lieu of notice: the employee receives full salary and benefits for the notice period without working. This doesn’t shorten the notice period legally, but it does resolve the practical situation.
Probationary employment
Swedish law allows a probationary period (provanställning) of up to six months. During this time, either party can terminate without giving a reason, and the notice requirement is just two weeks.
One critical rule: if the employer doesn’t terminate the contract before the probationary period ends, it converts automatically to a permanent indefinite-term contract. If you don’t intend to retain the employee, act before the probation period expires and give notice in time to allow for the two-week period.
Severance
LAS doesn’t require statutory severance pay for either employer-initiated termination or resignation. Severance can become payable under a collective agreement or the individual employment contract, so both should be reviewed before making any offers.
In practice, employers often negotiate severance in mutual termination agreements. The amount is typically calculated in months of salary and is offered to secure the employee’s agreement and avoid litigation risk.
Post-termination obligations
Employment certificate (arbetsgivarintyg)
The employer must provide an arbetsgivarintyg to the departing employee. This certificate must include the employment period, job title, salary, and reason for leaving. It’s a legal requirement and a practical necessity: the employee needs it to claim unemployment benefits through the A-kassa fund. Failure to issue it promptly can create complications for the employee and friction for the employer.
Final pay
Final pay — including salary, accrued holiday pay, and any other entitlements — must be paid on the normal pay date or the last working day, whichever comes first. Don’t delay final payment pending the return of equipment or the resolution of other matters. Those issues are handled separately.
Foreign nationals
If the employee holds a residence permit tied to their employment in Sweden, that permit ceases to be valid when the employment ends. The employee typically has a window of around two to three months to secure new qualifying employment or leave the country. Provide documentation promptly so they can manage their immigration status without unnecessary delay.
Using an EOR to manage terminations in sweden
When you employ staff in Sweden through an Employer of Record, the EOR is the legal employer and handles the procedural requirements of any termination on your behalf. That includes issuing the correct notices, managing union consultation requirements, ensuring final pay is calculated correctly, and issuing the arbetsgivarintyg. It also means redundancy isn’t an available route: if the business need changes and you no longer require the role, mutual termination or termination with personal cause are the relevant options.
Working with EOR services is particularly valuable in Sweden, where procedural missteps can render an otherwise valid termination unlawful. Getting the sequence right matters as much as having the right grounds.
RemotePass manages the full offboarding process in Sweden — from final pay to employment certificate — so you stay compliant at every step. Book a demo to find out how.
