Sweden’s government is taking another step towards significant reform of it ‘employment protection’ legislation. It has just set up a number of working groups to formulate details for a reform of employment dismissal legislation, which although should be based on a compromise between the social partners, has nonetheless failed to receive support from the main trade union confederation, LO. The government is looking to the beginning of 2022 as a date for adoption of the reform.
The working groups will explore the following topics in more detail:
- employment protection and related unemployment insurance issues,
- the creation of a new public restructuring agency that will set up and finance career conversion and skills upgrading operations for company staff,
- a new public scholarship/grant system for those who looking to pursue further academic studies.
Work undertaken from an agreement in principle reached in December 2020. In the spring of 2019, the Confederation of Swedish Enterprises (Svenskt Näringsliv), the trade union confederation LO, and the PTK council for negotiation and cooperation (joint organization of 25 SACO and TCO confederation member unions, representing 900 000 private sector salaried employees) began negotiations on how labour market functions should be changed, and in particular on employment protection rules and the unemployment insurance system.
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