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Termination due to redundancy

What does a shortage of work mean?

Shortage of work can mean that the employer has to cut back on its operations when there are no work assignments or that the company does not have money for the operations or pay out salaries to employees. It can also mean that the company has to undergo a reorganization and a redundancy arises. It is important to emphasize that the reason for the dismissal has nothing to do with the employee personally.

Obligation to negotiate before termination

If the employee is unionized

An employer who wants to terminate an employee due to shortage of work should inform the employee at an early stage. If the employee is unionized, the employer must on his own initiative contact his employee organization, ie. the employer has an obligation to negotiate in accordance with sections 11-14 of the Swedish Co-determination Act. Before the negotiation is concluded, the employer may not make a decision on termination. The purpose is for the employee organization to have an opportunity to influence the decision basis. If the employer fails to comply with the rules on co-influence, liability for damages may rise.

If the employee is not unionized

In cases where the employee is not a member of any employee organization, there is no obligation for the employer to negotiate.

Obligations of the employer

Regardless of whether the employee is a member of an employee organization or not, the employer has an obligation to first investigate the possibility of relocating the employee. If the employer has not exhausted all possibilities for relocation within the entire organization, there is no objective basis for termination. Furthermore, the employer must notify the employee or notify the employee organization that he or she will be terminated before the termination takes place.

What applies during the termination?

When the employee has received his or her notice of termination, he has the right to retain his salary and other employment benefits. The employer is not entitled to reduce the employee's salary during the notice period. The work tasks may, however, be adjusted to the extent that it is considered reasonable, but may not entail a significant deterioration of the employee's employment conditions. The employee and the employer can agree on time off during the notice period.


An employee always has the right to take his or her leave during the notice period if it has already been granted by the employer before. If the holiday leave is not granted, the employer cannot take his holiday during the notice period, unless the employer approves it. During the notice period not exceeding six months, the employer may not take leave if the employee and the employer do not agree.


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