How to hire in Sweden through an EOR

Sweden defaults to indefinite-term contracts. They're the most common type because fixed-term contracts convert to indefinite if you chain too many together.

Contract types

For most hires, indefinite contracts are the standard. They're simpler to manage and you won't risk triggering an automatic conversion to permanent status.

Part-time arrangements can sit under either contract type. Just make sure the hours are clearly specified. Most companies go with indefinite because it's straightforward and avoids the conversion risk.

What has to be in the contract

Contracts don't have to be fully written, but you must provide written terms within one month of the start date. Verbal agreements are technically valid, but written contracts are standard and much easier to rely on if a dispute comes up.

Include these mandatory items:

• Names and addresses of you and the employee
• Start date and place of work
• Job title and duties
• Fixed or indefinite term
• Probation length (if any)
• Notice periods for termination
• Pay, benefits, and payment frequency
• Normal work hours or week
• Holiday entitlement
• Overtime rules
• Social security contributions
• Any collective agreement
• Conditions for work abroad over one month

There's no legal language requirement, but Swedish or English both work depending on the role. Collective agreements often apply and may set additional terms like minimum notice periods or probation conditions.

Probation is optional for indefinite contracts, with a maximum of 6 months. Either side can end it at any point without notice or reason. Once probation passes, the employee gets full indefinite employment protection.

Contractor vs employee

Misclassification is a real risk in Sweden. Courts look at how the relationship actually works, not what you call it. If you control someone's hours, supply their tools, or they're integrated into your team, they'll likely be treated as an employee.

The key tests are subordination (whether they follow your direction), whether they personally perform the work, and how economically dependent they are on you. A genuine contractor arrangement should have a clear project scope, no exclusivity, and invoice-based pay.

If you get it wrong, you're looking at back taxes, employer-side social security contributions (around 31%), plus interest. The employee can claim holiday pay, notice periods, and damages. Unions and tax authorities both pursue reclassification, and fines can reach SEK 500,000 in serious cases. Courts can award back pay and compensation covering several years.

Non-competes require post-employment compensation of at least 60% of prior salary and can't exceed 2 years, or they won't hold up. Without that compensation, they're mainly void. On IP, employees own their inventions by default unless the contract says otherwise, and you'll need to provide reasonable reward if you want to assign those rights.

Sweden's legal minimum is 25 days of paid annual leave, but most employees expect 30. If you're hiring for skilled roles, matching that standard will make a real difference.

Employees earn leave during the qualifying year, which runs from April 1 to March 31. To calculate paid days, divide employment days (including weekends and holidays, minus uncredited absences) by 365, then multiply by 25 and round up. Full-time employees working the full period get all 25 days. Part-timers get a proportional share based on weekly hours.

Leave becomes available the following vacation year, starting April 1. Employees must take at least 20 days annually, and four consecutive weeks are possible between June and August. Days beyond 20 can be carried over for up to five years. Holiday pay equals 12% of gross salary earned in the prior year, plus a 0.43% premium in the month the leave is taken.

New hires who join after August 31 get five unpaid days for that year. If someone leaves, you'll need to pay out any unused leave. Don't require employees to use leave during short notice periods unless they agree to it.

Public holidays

Sweden has nine fixed public holidays. Most are paid if they fall on workdays, but you're not required to provide extra time off. Employees simply don't work those days.

All leave types

Here's what the law requires. Employers cover short-term absences, then social insurance takes over. Job protection applies across most leave types.

Parental leave is worth noting: parents share 480 days, with quotas reserved for each to encourage both partners to take time. Sick pay kicks in after the employer's 14-day coverage ends. There's no statutory marriage leave, but unions often negotiate it into collective agreements.

Mandatory benefits

You're required to withhold and contribute to social security, which comes to around 31.42% of gross salary in 2024. That covers health insurance, pension, and more. Employees contribute about 7% through payroll tax.

There are no requirements for meal vouchers or transport allowances. Pension contributions are split: the statutory portion is minor, but collective agreements typically require employer contributions of around 4.5% for white-collar workers. Healthcare is publicly funded through social security, not private insurance.

What employees actually expect

Legal minimums won't get you far with skilled candidates. Most Swedish employees receive 28 to 35 vacation days through collective agreements, particularly in tech and professional roles. Offering 30 days puts you in a competitive position.

Parental leave is already generous by law, but many employers top it up to 100% pay for several months through insurance schemes. Private health insurance is also common in competitive packages because it speeds up access to specialists, given that public wait times can be long.

Expect employees to want full remote flexibility or hybrid arrangements, often with a home office stipend of around SEK 1,000 to 2,000 per year. Wellness perks like gym memberships or mental health days have become fairly standard. If you're only offering the legal minimum, you'll likely see higher turnover. Matching local norms is the more practical approach.

Firing someone in Sweden without solid documentation can land you in court, with the employee potentially staying on payroll until the case is resolved. The burden of proof is entirely on you, and courts expect you to have tried alternatives before terminating.

Firing someone

You need objective grounds for termination. These fall into two categories: personal reasons tied to the employee, like poor performance or misconduct, or business reasons like redundancy.

For personal reasons, you need to show the employee seriously breached their contract. 2024 Labor Court cases upheld dismissals for repeated failure to hit sales targets or call quotas, but only where employers had documented warnings, given time to improve, and confirmed no other role was available.

Unfair dismissal means terminating without objective grounds or skipping required procedures, like union consultations. The court can rule the dismissal invalid, which means continuing to pay the employee or facing damages for lost income and non-economic harm.

Protected categories include union activities, whistleblowing, parental leave, and discrimination based on gender, age, ethnicity, religion, disability, or sexual orientation. Dismissing someone for any of these carries significant penalties.

Summary dismissal (immediate termination) is rare. It's only valid for gross neglect, and you need to act within two months of becoming aware. You still need to notify the employee's union first and give them time to consult.

Courts tightened expectations slightly after the 2024 Employment Protection Act reforms, but the bar is still high. If your documentation isn't solid, you're exposed.

Notice periods

Notice must be in writing, delivered in person or by registered mail. It needs to include the employee's right to challenge the decision and, for redundancy cases, their rehire priority rights. Statutory minimums apply unless your contract or collective agreement sets longer ones.

In most cases, the notice period an employee gives mirrors what the employer gives.

Severance

Sweden has no statutory severance pay. It's not required by law.

Collective agreements or individual contracts may include it, often for longer-tenured employees in redundancy situations. There's no standard national formula or cap. Some agreements pay one month's salary per year of service, but it depends on the specific agreement in place.

If your EOR uses a contract that includes severance, they'll calculate it based on tenure and base salary. Short-tenure or performance-based terminations rarely include it.

Work permits and visas

You can hire foreign nationals through an EOR. The EOR acts as the legal employer and sponsor for work permits.

EU/EEA/Swiss citizens don't need a permit. They register residence after 3 months. Non-EU nationals need a work permit before starting.

The main categories are: standard work permit (for skilled roles with a labor market test), intra-corporate transfer, researcher, and specialist. Key requirements include a job offer with a minimum salary of SEK 13,000/month (2026 figure), suitable housing, and health insurance. Standard processing takes 1-3 months. Fast-track for shortage roles runs 10-20 days.

There's no digital nomad visa in Sweden. EORs like Remote or Deel can sponsor as the employer and handle applications through the Swedish Migration Agency. You provide the job details; they handle the filing.

Start the process early. Rejections are common if the salary is below the threshold or the labor market test isn't properly documented.

A few other things worth knowing

GDPR applies to how you handle employee data. You need consent to process personal data, and breaches can result in fines up to 4% of global turnover. A good EOR will manage this for you.

Trade unions are a real presence in Sweden, with over 70% density. Collective bargaining agreements (CBAs) cover around 90% of employees and typically set better terms than the law on pay, hours, and notice. You're required to consult the union before terminations: 2 weeks' notice for personal grounds, and before any redundancy decisions. Skip this step and you're looking at damages.

If there's no CBA in place, you negotiate individually, but expect unions to push for one.

On recent changes: the 2024 Employment Protection Act increased flexibility but kept the documentation bar high. A 2026 Supreme Court ruling on executive dismissals is worth watching if you're hiring senior staff. No major shifts to the basics of hiring have been announced for 2024-2026.