Meddelandekrav
An employment contract may be terminated by mutual consent of both the parties; by employee (with notice or with notice in case employer has failed in fulfilling contractual obligations); termination on objective grounds by the employer with appropriate notice (uppsägning); termination by the employer without notice in case where employee has grossly neglected the contractual obligations/summary dismissal without notice (avskedande); termination during the probationary period; and termination at the age of superannuation (67 years).
The objective reasons include economic, technical or organizational reasons requiring changes in the employer's workforce (shortage of work/redundancy) and circumstances relating to the employee personally (although not clearly defined in the law but generally relating to serious problems with employee's behaviour or performance like violence at work, lateness and refusal to follow instructions).
Except in cases of summary dismissal (where no notice period is required), an employer must give following statutory minimum notice before terminating an employment contract: two weeks during the probationary period; one month for less than two years of employment; two months for at least two years but less than four years of employment; three months for at least four but less than six years of employment; four months for at least six but less than eight years of employment; five months for at least eight but less than ten years of employment; and six months for at least ten years of employment.
An employee, while terminating an indefinite employment contract must give a statutory minimum notice period of one month, regardless of his or her length of service. The collective bargaining agreement may provide for different notice periods than the above provisions.
Source: §11 of Employment Protection Act, 1982
Avgångsvederlag
There is no statutory requirement for employers to make any severance or redundancy payment to employees while terminating an employment contract. The only requirement is to pay wages to the employees during the term of notice period. Severance pay is usually stipulated in individual employment contracts and collective agreements. The collective bargaining foundation, TRR Trygghetsrådet, assist employees whose employment has been terminated due to shortage of work. If certain conditions are met (like worker must be 40 and over; at least five year of employment with the employer; must have worked at least five hours a week), workers made redundant due to a shortage of work are entitled to severance pay (Avgångsersättning-AGE).
AGE provides 70% of the previous salary including compensation from the unemployment insurance fund. AGE is payable from 6 months up to 18 months after cessation of employment, depending on age of employee.
Source: https://www.trr.se/uppsagd/ekonomisk-ersattning/age/
