All places of employment must follow the laws to which the labour market is subject. The Riksdag (Parliament) passes legislation. Employment legislation governs the working environment, holiday, equal opportunity and other matters.
Below are some laws with which employers must comply:
- The Security of Employment Act (LAS) says that a company may not lay off an employee without following certain priority rules.
- The Employment (Codetermination in the Workplace) Act enables employees to have a voice in important decisions.
- The Annual Leave Act guarantees all employees the right to holiday.
- According to the Work Environment Act (AML), all workplaces must be healthy and safe.
Employers and employees enter into various agreements. Many agreements are the result of collective bargaining between employer organisations and trade unions. Such agreements may concern working hours, wages and other conditions. Collective bargaining is free of government involvement.