Vinge Dude Diligence – for improved gender equality

The Labour Court: Unlawful blockade warning against Russian-linked ships made by Swedish Dockworkers Union AD 2022 No 33

On two occasions, the Swedish Dockworkers Union has warned of a blockade against ships to and from Russia and against Russian-flagged, Russian-owned and Russian-controlled ships that are currently not sailing in Russian ports. The Swedish Dockworkers Union argued that the blockade should be regarded as a lawful industrial action as it was primarily an act of sympathy and in solidarity with, among others, Ukrainian dockworkers. Secondly, the blockade should be considered as a form of legitimate political industrial action. However, the Ports of Sweden disagreed, which the union is bound by a collective bargaining agreement with. Following an application for an interim decision on the matter, the Labour Court found that the Swedish Dockworkers Union had failed to show that it was likely that there was a primary trade union conflict in Ukraine. The blockade could not be regarded as a lawful sympathy act. Furthermore, the Labour Court found that the blockade could not be considered as a form of lawful political industrial action as the blockade lacked the character of a protest and demonstration action due to the period of time the blockade would last and the not insignificant impact it would have on the business management rights for the Ports of Sweden’s member companies.

Changes to the Swedish Employment Protection Act and other labour laws

In recent years, the modernisation and reform of Swedish labour law has been a constant topic in the political debate. Earlier this year, Government Bill 2021/22:176, entitled "Flexibility, adaptability and security in the labour market", was presented. The bill, which is based on an agreement between the social partners, proposes legislative changes to a total of 21 labour laws. On 8 June 2022, the Swedish Parliament voted through the proposal, which will bring major changes to Swedish labour law. The majority of the proposed changes will enter into force on 30 June 2022 and will apply for the first time on 1 October 2022. In this detailed analysis, we will outline the most important changes to the Employment Protection Act (1982:80) ("EPA") and the Agency Work Act (2012:854).

New partners and counsel appointed at Vinge’s Malmö and Stockholm offices

Advokat Daniel Daun and advokat Victor Ericsson at Vinge’s Malmö and Stockholm offices respectively have been appointed as new partners as of 1 January 2023. Jacob Jeanrond, Caroline Krassén, Henrik Schön, Maria Dahlin Kolvik, Sara Strandberg and Linn Adelwald have been elected as counsel at Vinge’s Stockholm office.

New regulation regarding employer’s obligation to provide information and parallel employment

In March 2022, the Government presented a proposal for a new regulation on extended obligations regarding information about employment conditions and new clarifying rules on workers' rights to parallel employment under certain conditions. The updated regulation is based on a directive from European Union called “transparent and predictable working conditions in the European Union”.

Vinge wins M&A legal advisor of the year award

Mergermarket has awarded Vinge the Swedish Legal M&A Advisor of 2021.

Decision from the Government – requirement for authorities to have external whistleblowing functions

On 17 December 2021, the new Whistleblower Act entered into force. The Act requires businesses and authorities to set up and manage so-called internal and external reporting channels.

Sanctions update 16 March 2022

Further to our previous sanctions updates we herewith provide a further update of recent sanctions developments:

Update on the EU, UK and US sanctions against Russia and Belarus

In the past few days EU, UK and US have issued sanctions against Russia and Belarus in response to Russia’s invasion of Ukraine. Of particular importance is yesterday’s action by the US to sanction the two largest Russian banks, VTB Bank and Sberbank. UK has also sanctioned VTB Bank and it is not unlikely that EU will follow suit within short. Business dealings involving these banks, as well as all other sanctioned entities, will be severely affected. The sanctions can be summarised as follows:

Emelie Svensäter Jerntorp appointed as new partner

Commencing 1 January 2022, Emelie Svensäter Jerntorp will become a partner at Vinge’s Skåne office.

What an employer should know about the New Whistleblowing Act

Why adopt a new Whistleblowing Act when the current act was adopted as late as 2017?

Employer bears burden of lack of clarity regarding dismissal        

In a judgment in case AD 2021 no. 14, the Swedish Labour Court has clarified that, if an employer has had a justifiable reason to believe that an employee considers himself or herself to be terminated or summarily dismissed notwithstanding that the employer does not believe such to be the case, the employer must make it clear that the employment relationship persists. Passivity in such a situation will cause the employee to be regarded as being terminated or summarily dismissed, which may constitute a violation of the Swedish Employment Protection Act.

The Supreme Administrative Court grants leave to appeal regarding comparison month for short-term work

At the request of the Swedish Agency for Economic and Regional Growth, the Swedish Supreme Administrative Court has granted leave to appeal on an issue involving a short-term work comparison month.

Extended measures in response to COVID-19

As we have previously reported in the newsletter, the Government has pursued various measures to reduce the negative effects of the COVID-19 pandemic on the labour market, including the implementation of qualifying-period compensation for employees and reduced employer’s social insurance contributions for persons aged 19-23.

Amendments to the Employment Protection Act (Ministry Publications Series 2021:17): Labour law reform

Amendments to the Employment Protection Act (Ministry Publications Series 2021:17): Labour law reform – for flexibility, adaptability and security on the labour market

The European Court of Justice restricts a company’s possibility to “buy its way out of” discrimination cases

The European Court of Justice has clarified in a new judgment the fact that someone who believes they have been discriminated against is entitled to a determination by a court of law which establishes whether discrimination has occurred – on condition that the opposing party has denied it. Thus, a party who has been accused of discrimination may no longer “block” the right of the affected party to judicial review by stipulating to the compensatory part of the legal action. This decision augments the protection for individuals against discrimination and might mean that certain Swedish procedural rules are incompatible with EU law.