Do you want to know more about different forms of employment and what should be included in an employment contract? Then you have come to the right place! In this article, we will examine forms of employment for fixed-term employment and permanent employment. We also review everything that should be included in an employment contract and links to good employment contract templates that are easy to download!
Forms of employment
In Sweden, there are two different forms of employment, one is fixed-term employment and the other is permanent employment. Both when looking for a job and receiving an offer, it’s important to keep track of what form of employment applies to the role. Different rules and laws apply for different forms of employment. Let’s take a closer look at the difference between fixed-term employment, probationary employment and permanent employment.
Temporary employment is employment in which the employment contract states that the job will continue for a certain period only. It is therefore important when hiring a person for a fixed-term employment that you have a written agreement describing how long the work will last
A fixed-term employment may look different. It can be a general fixed-term employment or a temporary position. In a general fixed term job, you can work a maximum of 24 months over a 5-year period. If the total time you work for the company exceeds 24 months, the employment will be transferred to a permanent employment.
A temporary position is a fixed-term employment where you work instead of someone who is away from work. There are many different reasons that can cause a person to feel the need to step away from work. For example, it could be due to vacation, illness, military service, maternity / paternity leave, studies or leave of absence.
The agreement for a temporary position should clearly state who owns the temporary position and how long the temporary position will last.. If the temporary position lasts for a total of more than 2 years over a 5-year period, the employment contract will automatically be transferred to a permanent employment.
The probationary period is included in the employment form for permanent employment. Most companies begin a job with a probationary period. A trial period can last for a maximum of 6 months unless it is subject to any collective agreement stating otherwise. If you’ve been a proxy before or have held a fixed-term job in general with the company, they won’t be able to arrange you with a probationary period. Instead, the employment must immediately become a permanent employment.
For employers, a probationary period is a good time to assess whether the person in question is fit for the job and to see if the person is able to fulfill their job duties and is successful at the company. The purpose of probationary work is to transfer the employment to a permanent employment when the trial period ends. If it doesn’t work with the employment, it is easier to end a probationary employment than a permanent employment.
If you have a permanent employment, there is no end date for your employment. Instead, permanent employment applies until you choose to terminate employment, either as an employee or as an employer. When most people talk about permanent employment, they usually call it permanent employment.
If you, as an employee or employer, want to terminate an employment contract, a certain notice period applies. There are different notice periods depending on whether you have a collective agreement or not. If you run a company that doesn’t have a collective agreement, the notice period is between 1-3 months, and you usually write the notice period you agreed on in the employment contract. If nothing is written, the Employment Protection Act (LAS) applies for 1 month.
Unlike probationary employment, it is more difficult for an employer to terminate a permanent employment. If the employer wants to leave the job, there must be objective reasons leading to the decision. Examples would be lack of work, which is the most common reason for termination of employment. The job shortage is that the employer cannot offer the same job as before and there are no opportunities to relocate in the company. It can also be caused by personal reasons, such as mismanaging one’s job or acting inappropriately in the workplace.
Pros and cons of different employment forms
Different forms of employment have both pros and cons. For those of you starting a job, a permanent job is a safer choice as your job doesn’t have a deadline. As an employer, there are clear laws regarding notice periods and on what grounds you can terminate a permanent employment.
On the other hand, probationary employment has less security for those who are employed. During this time limited period, the employer may choose to terminate employment for a variety of reasons, and it is sufficient to notify the probationary person 14 days in advance that employment will end.
One disadvantage of fixed term employment is the uncertainty of continuing work when the term expires. There is no guarantee that employment will continue in a time limited form of employment. In the case of a temporary position, you usually only work for the duration of the contract until your replacement is reinstated. If you did a good job and another position opens, you can move on to that position and get a permanent job.
This should be included in your employment contract
An employment contract can be oral or written. However, we always recommend writing a written employment contract, as it can be difficult to remember what was said when discussing employment. Below are a few points you should go over and include in your written employment contract. The employment contract is a very important document and will affect all your continuing work at the company.
These points should be included in the employment contract in writing:
- Employer’s name, address, telephone number, and organization number
- Employee’s name, address, telephone number
- work start day
- Type of employment (fixed-term, probationary, permanent employment, etc.)
- Job title and duties
- From where the work is to be performed (at the workplace, distance)
- Termination period for permanent employment
- Probation period must be specified for employment (maximum 6 months)
- In case of fixed term work, the end date must be specified.
- Salary and other benefits
- When and how often the salary will be paid
- Working hours (number of hours per week)
- Terms for holidays
- Occupational pension
- Any collective agreement (laws and regulations)
- Employer’s insurance provided by the employer
- Working conditions abroad
- Other information (confidentiality, non-compete)
It is important that both parties agree on a hundred before signing the employment contract. Therefore, it may be good to reach and read the agreement in peace and quiet before you sign it. In addition, if there is something you missed or needs to be clarified, you can get help from a relative to read the contract together.
Employment contract template
Here you can find templates for employment contracts regarding fixed term employment, probationary employment and permanent employment .
At Simsons Accounting Agency we hope this information has been useful to you and that you have gained a better understanding of the different forms of employment and what should be included in an employment contract. If you have further questions or want to know more about payroll and current accounting for employees, you are warmly welcome to contact us!
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