The main rule is that the EPA shall apply to all employments in Sweden. However, there are explicit exemptions in the EPA that exempt certain employees from most of the provisions. One of these exemptions is applicable to employees in managerial or comparable positions. But how do you determine if someone holds a managerial position? What is essential for the assessment of the applicability of the exemption?
The consequences of an employee not being covered by the EPA is, e.g., that the employment may be terminated without considering the statutory notice periods and that the requirements for objective reasons for termination do not apply. The application of the exemption thus has a decisive impact on the terms of the employment, which highlights the importance of doing a correct assessment. The criteria for determining who is in a managerial position in a company has recently been touched upon in a court case from the Swedish Labour Court, AD 2023 No. 24. In this article, we look further into the circumstances highlighted by the Labour Court and summarise the important criteria to bear in mind when assessing whether an employee should be considered to fall within the scope of the EPA.
Regulation in the EPA
Pursuant to Section 1 of the EPA, the EPA applies to employees in both the public and private sector. The main rule is that the EPA applies to all employments. Who is to be considered as an employee is not explicitly stated in the EPA but is assessed based on a number...
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