- What rules are applicable when conducting employment contracts for summer temps? According to the Employment Protection Act (in Swedish LAS), there should be employment contracts for all types of hires. This also applies to temporary staff; having a written agreement provides security for both you as the employer and your new employees, clearly outlining your respective obligations and rights. The employment contract should include the employee's and company's names, type of employment, information on any collective agreements, details about salary and vacation days, notice period, and duration of employment.
Here's a comprehensive description of what should be included in the contract (in Swedish). - Changed rules for employee information
Starting from October 1, 2022, stricter regulations regarding written information for new hires are in effect. These changes mean employers must provide more information, faster and to a broader range of employees than before. Even hires with durations shorter than three weeks are subject to these requirements, so the rules also apply if you're hiring summer temps for the entire season or a shorter period.
The written information for new hires should include details about the employee's regular working hours or working week, as well as information on overtime and compensation for such work. Additionally, employees should be informed about: – their right to employer-provided training – vacation entitlement and paid vacation days – employer's contributions and social security protection – rules that both employer and employee must follow when either party wishes to terminate the employment.
Here, you can read more about what the new regulations entail (in Swedish). - Understanding the collective agreement
The collective agreement governs the conditions applicable to your temporary staff, so it's crucial to stay informed about its content. If there's no collective agreement in place, Swedish labor laws, including the Employment Protection Act (in Swedish LAS), the Annual Leave Act (in Swedish Semesterlagen), the Sick Pay Act (in Swedish Sjuklönelagen), and the Working Hours Act (in Swedish Arbetstidslagen), apply. - Employment forms for summer temps
Two common employment forms used for temporary staff are seasonal employment and specific fixed-term employment (in Swedish SÄVA, formerly known as general fixed-term employment, in Swedish ALVA). Both types of employment should have a defined duration, and which one to choose depends on the nature of the job at hand. Seasonal employment applies to jobs only performed during a limited time of the year, such as certain roles in tourist destinations. Otherwise, specific fixed-term employment applies.
What's the difference between general fixed-term employment and specific fixed-term employment?
In 2022, extensive changes were made to the Employment Protection Act, and one significant change was the replacement of general fixed-term employment (ALVA) with specific fixed-term employment (SÄVA) starting from October 1, 2022. The difference between general fixed-term employment and specific fixed-term employment lies in the transition to permanent employment: Specific fixed-term employment transitions to permanent employment after only 12 months (general fixed-term employment transitioned after two years).
So, what does this mean in practice? It means that an employee who has been on specific fixed-term employment or consecutive fixed-term employments (such as substitute positions or seasonal work) for a total of more than twelve months within a five-year period will have their employment converted into a permanent one. Keep in mind that this can also be regulated by the collective agreement, so always double-check. - Vacation pay and sick pay
In Sweden, everyone who works and receives a salary is entitled to a minimum of 12% vacation pay, which also applies to your summer temps working for a shorter period. However, there's a difference for temporary staff when it comes to vacation pay: An employee working up to three months is not obliged to take vacation days as compensation but can choose to receive it alongside their salary. Now, how does sick pay work if your temporary staff falls ill? Here's how: If the employment duration is longer than one month, your temporary staff is entitled to sick pay. Sick pay also applies in cases where the employment is shorter than one month, but the employee must have worked for at least 14 days. - Tax-free amount 2024
If any of your employees earn less than a certain amount in a year, they don't have to pay any taxes. The amount varies from year to year, and in 2024, the tax-free amount, according to the Swedish Tax Agency, is 24,238 SEK. So, if you have summer temps who earn less than that during the year, they don't need to pay any taxes. You also need to obtain a certificate from the employee stating that they will not earn more than the specified threshold, and in that case, you don't have to deduct any taxes from the employee's salary. - Employer contributions – what applies to summer temps? As an employer, you need to pay employer contributions for all employees who earn more than 1,000 SEK during the year. The full employer contribution rate in Sweden is 31.42% on the gross salary and benefits you pay out.
The reduction of employer contributions for young people has ceased
Previously, there were temporary rules regarding reduced employer contributions for those born between 2000 and 2004. However, as of January 1, 2024, the reduction ceased for those who had turned 15 but not 18 at the beginning of the year, meaning the employer contribution is currently 31.42 percent for young individuals. You can read more about the current contribution rates for different years here (in Swedish). - Hiring underage summer temps
A person who is not yet 18 is considered a minor. Since there are specific rules regarding both working hours and tasks for individuals under 18, it's important to be aware of them when hiring underage summer temps. Also, keep in mind that if you hire someone who is under 16, you must have written consent from their guardian. The Swedish Work Environment Authority has provided detailed information on what applies.
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If you want to know more about the benefits, please get in touch with us!
