What is notice? Will I be made unemployed now? What is the termination procedure? Most organisations change over time and reorganisations are a natural part of that. An employer planning to downsize their operations must follow certain rules. Here’s how the process works – step by step.
Most organisations change over time and reorganisations are a natural part of that. There are many different reasons why employers need to make changes to their organisation from time to time. For example, they may need to cut costs, or no longer need certain tasks to be carried out, or want to focus on new markets or need to bring in new expertise.
Reorganisation can be seen as a process that involves certain steps. There are rules in both legislation and collective agreements that govern what happens when and who decides what.
In the following you will gain an overview of the process and get advice on things to consider and what you personally can do when your employer is reorganising.
When employees are informed that a reorganisation is underway, many questions are often raised. Not all reorganisations involve job cuts, but if the employer needs to terminate people’s employment, there is sometimes talk of notice.
When a company gives notice, it means that the employer is notifying in advance that they may need to terminate a number of people’s employment. Notice in the context of a reorganisation (in Swedish) is therefore not directed at a specific person and is not the same as individual notice of termination.
Unions and employers must first negotiate how many people may ultimately have their employment terminated – and which ones.
If you receive notice of termination or a written offer of redeployment without negotiation having taken place, contact Unionen.
If you receive a buyout offer in this situation, it may also be a good idea to contact Unionen to find out what applies, as this can be difficult to assess.
Before carrying out a reorganisation, the employer must negotiate with the union regarding the planned changes. This is regulated in the Employment (Co-determination in the Workplace) Act. The employer must contact the trade union concerned and inform it of the issue about it wishes to negotiate. This is called a request for negotiation.
If Unionen has a club at the workplace, the employer should contact it, as the club has the mandate to negotiate.
If there are other white-collar unions represented in the workplace, they can sometimes negotiate together with Unionen (in Swedish)
If there is no Unionen club at the workplace, the employer must instead send the request for negotiation to Unionen’s regional office. In this case, a regional ombudsman takes charge of the negotiation.
Even if an employer does not have a collective agreement, they must negotiate major changes to working and employment conditions of employees who are members of a trade union as if the employer had a collective agreement.
If employees at the workplace are not members of a trade union and the employer does not have a collective agreement, the employer can make changes without negotiating.
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In a reorganisation, the employer and the union must first negotiate about the new organisational structure.
Which positions should remain, and which should be removed or changed? Should departments be merged or a team change managers? What will the proposed change mean for staff? Does the new organisational proposal make sense or will it lead to excessive workloads or ambiguous decision-making paths? In this phase, the functions that should remain in the organisation are discussed, not whose employment should be terminated or who should be kept on.
Before a decision is made on the new organisation, it is common for the workplace club or the ombudsman to hold a member meeting or contact members to get their views on the employer’s organisational proposal.
Take the opportunity to have your say by attending the meeting or emailing your views and questions.
Once the organisational negotiation has taken place, the employer makes the decision. The union is entitled to try to exert an influence, argue and ask questions during the negotiation, but ultimately it is the employer who has the last word.
Once this part of the negotiation has been completed, the employer can provide information on the new organisation and the positions available. The union often organises a member meeting at this point.
If your position is affected by the reorganisation, it does not automatically mean that you will be the person given notice. Whether anyone’s employment is to be terminated, and if so, whose, will be determined when the employer and union negotiate the staffing of the new organisation.
You can prepare yourself by updating your CV prior to the staffing negotiation. If your position is affected and you have not been informed of the next steps, please contact your employer or Unionen.
Once the new organisation has been decided, it is time to look at staffing – that is, who will be affected and who will be in which position.
In order to try to avoid terminating people’s employment, the employer should examine the possibility of redeploying those whose positions are not retained in the new organisation to any vacant posts. This is called a redeployment investigation, and the employer is required under the Employment Protection Act to carry out such an investigation. In this situation, the employer does not have to take into account the length of service and can choose the person they consider most suitable.
In order to be redeployed to a new position, the employee needs to have sufficient qualifications for that position. This means that the employee must have the general qualifications normally required of someone applying for that job.
An employee who is to be redeployed receives a redeployment offer. The redeployment offer must be reasonable, but it may still involve different duties and a lower salary.
If the employee refuses a redeployment offer, there are normally objective grounds for terminating employment due to a work shortage. It is therefore not possible to turn down redeployment and claim someone else’s position on the grounds of longer service.
It is only when the employer has made redeployment offers, and those offered redeployment have accepted or declined, that it can be determined whether there is still redundancy in the organisation, i.e. whether there is a work shortage.
A work shortage is the most common reason for terminating employment and is a collective term for various situations where the termination is for organisational reasons, and not due to any personal fault of the employee.
It may not concern an actual work shortage but may instead be that the employer wishes to run the business in a different way and is unable to offer the same work as previously. This may be because the employer does not consider the business to be sufficiently profitable, wants to wind up a particular business area or wishes to outsource parts of the business.
A work shortage is classed as an objective reason for terminating employment under the Employment Protection Act.
If you receive a redeployment offer, make sure it is in writing and states the position to which you are being offered redeployment and the terms and conditions that apply. It should also state when the employer wants a response. It can be difficult to assess a redeployment offer. If you are unsure, contact Unionen.
You should also consider your own circumstances. Is it important for you to remain in the organisation? What are your chances of getting a new job?
Sometimes, the employer proposes a buyout agreement instead of offering redeployment to a vacant position. If you have any questions about this, contact Unionen.
If, after the employer’s redeployment process, there is still redundancy, this means that a certain number of people need to have their employment terminated – but it is not certain that these will be the people who have lost their jobs.
The main rule under the Employment Protection Act is that, when deciding whose employment to terminate, a person with a longer period of employment takes precedence over one with a shorter period in accordance with the ‘last in, first out’ principle.
The starting point is that the employer and the union and negotiate the priority order and agree on what is known as an agreed priority list. This means departing from the statutory and collectively agreed order of priority and instead agreeing on other criteria for staffing the new organisation. It is about ensuring that the necessary skills remain in the organisation, not about identifying who the employer wants to get rid of.
If the union and the employer cannot agree on a priority list, the employer may instead make a number of exceptions from the list for people they consider particularly important to the organisation. These are removed from the list and remain in their positions. The period of employment and whether employees have sufficient qualifications then determine whose employment should ultimately be terminated.
If your employer does not have a collective agreement, the rules of priority in the Employment Protection Act apply, with the possibility of the employer excluding key personnel from the priority order, but the employer must still negotiate with the union before terminating employment.
More about rules of priority when terminating employment (in Swedish)
During this process, the negotiator should engage in dialogue with you as a member. If you feel that the employer is not following the rules of priority and you have not been informed that a priority list has been agreed upon, you should immediately contact the Unionen club at your workplace or Unionen’s advisory service.
Sometimes, the employer proposes a buyout agreement instead of offering another position under the rules of priority. If you have any questions about this, contact Unionen.
Once negotiations on staffing the new organisation have been completed and the employer and union have finished negotiating about whose employment should be terminated, the employer can proceed with terminating employment. Notice of termination must be in writing and delivered personally. How you should receive notice of termination (in Swedish)
If there is a collective agreement at your workplace, your employer should submit an application for support to your transition organisation as soon as you have received notice of termination. If there is no collective agreement, you submit the application yourself.
The period of notice begins on the day you receive notice of termination. If you are given notice during parental leave, the period of notice begins on the date you have said that you will be returning to work. If you are on annual leave when the employer intends to terminate your employment, the employer must wait to do so until the date you have notified them that you will be back, and the period of notice will start from that date.
The length of the period of notice is determined by your contract of employment, collective agreement and the Employment Protection Act. Period of notice if the employer terminates your employment (in Swedish)
During the period of notice you are entitled to keep your salary and other employment benefits, even if you are redeployed to perform other duties. Normally, you are obliged to work, i.e. you continue to work as usual.
There are a number of things you need to do during your period of notice and once you become unemployed.
Opening hours for advice and help regarding your work situation or questions about your membership
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