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Employment law
The Swedish labour market is regulated by legislation, and a vast majority of the labour market is governed by collective bargaining agreements that may be entered into by employers' association or by signing agreements directly with one or more trade unions.
i General
In Sweden, freedom of contract applies. Mandatory law provides basic terms of employment which are supplemented by collective bargaining agreements and individual agreements.
The presumption under Swedish law is that employments are entered for an indefinite term. This means that if the parties do not agree on a fixed-term employment, the employment applies until further notice. Due to uncertain and varying conditions in the hospitality sector many companies are cautious with offering indefinite employments and rather rely on employing candidates on the basis of fixed-term contracts. To protect employees from extensive use of temporary employments, fixed-term contract that exceed 12 months during a period of five years with the same employer will automatically transform into indefinite term contracts. Note that collective bargaining agreements may contain provisions that deviate from this rule.
Furthermore, an employer must comply with mandatory legislation within the areas of, among others, work environment, working hours, sick pay, holiday entitlements, non-discrimination and parental leave.
ii Pay and benefits
There are no statutory provisions regulating minimum wage in...
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