Different types of employment and what you as an entrepreneur should think about

This week, your accounting firm in Stockholm goes through what the different forms of employment mean to the person who wants to hire and what to think about in advance. There are three types of employment in Sweden today: either it is temporary employment, permanent employment or probationary employment. It is obviously important to know the type of employment that applies, or what to offer your employees, where rules vary between them. Then, in an employment contract, it must be clearly stated what type of employment you or an employee has.

As a self-employed person, it is also important to know the various laws and regulations that apply when hiring staff or dismissing. You can always contact your accounting firm if you are unsure about what is in store. With BQ Accounting you always get advice included in our completed packages.

Permanent employment (employment until further notice)

Permanent employment (today also called permanent employment) is what most people are looking for. This is the safest form of employment in Sweden for an employee. The permanent position is also the form of employment where you as an employer have the greatest responsibility.

Termination period with permanent appointments

A permanent position also applies with a notice period which is about the employee having to inform the employer in advance. You as an employer are bound by this notice period and the length of notice period, which should be stated in the employment contract. It is usually between one and six months. To think of as an employee or employer is that you are entitled to a full salary and access to all other benefits during your period of notice.

Terminate a permanent employee

The permanent employment is a secure employment for many, and one can usually not only be terminated completely without cause. As an employer, you have to give a specific reason – factual basis for dismissing someone. One factual reason may be either lack of work – or personal reasons from the employee. Lack of work refers to the actual lack of work, but also includes financial shortcomings within the company. Personal reasons mean that the employee has failed to fulfill their obligations set out in the agreement or that they have been guilty of abuse, threats of violence, theft, embezzlement, unfair competition, refusal to work or unauthorized absence. Severe cases of the latter can also lead to termination, which means that there is no certainty of a termination period.

The main rule is that agreements should be valid until further notice. This means that other types of employment such as temporary employment or probationary employment are exceptions to this general rule. As an entrepreneur, it is advisable to draw up an agreement immediately, regardless of when the employee has his or her day of access.

Temporary employment (temporary employment)

A fixed-term employment means that you as an employer give you a clear start and end date. This work is mainly applied to seasonal employment or changes. Also, note that if you have an employee who has been employed for more than two years, over a five-year period, their temporary employment will automatically be transferred to a permanent position.

Probation (apprenticeship)

Another form of employment is an apprenticeship test – trial employment. A probationary position may be shorter but usually it is six months. The employment becomes a permanent employment (employment until further notice) if the employment is not prematurely canceled by you as an employer.

hourly employment

Temporary employment – (employment per hour) is not a valid form of employment in Sweden. However, there is no limit to how short a time-limited employment can be. This means that some employers apply time-limited employment for very short positions, and in reality make it an hourly paid employment.

Get help with the whole paycheck at BQ Accounting

As a customer with us, you always get the help you need with payroll management, employment contracts and also keep you updated on new laws and regulations regarding employment. Choose the right accounting firm right from the start so you don’t have to worry about hiring. BQ Bemanning also works with staffing and direct recruitment of economists and is a perfect alternative for those who need to recruit accounting economists. You can read more about BQ Staffing here.

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