Sweden's labor laws enable companies facing difficulties to reduce staff or close units by citing 'arbetsbrist' or 'shortage of work,' which includes various reasons like financial issues or relocation. A layoff process initiates with a 'varsel' notification to the Swedish Public Employment Service, outlining reasons and redundancies planned. Union talks are mandated prior to finalizing any layoffs, ensuring workers have representation. Bankruptcy remains a last resort, as companies often seek to restructure before making drastic decisions.
In Sweden, companies can lay off staff by citing "arbetsbrist," or shortage of work, which allows flexibility in staffing even during profitable times.
The process begins with a varsel, a notice to the Swedish Public Employment Service detailing the reasons for layoffs and number of affected employees.
Union negotiations are mandatory before finalizing any layoffs. This process is governed by the co-determination law, which emphasizes worker representation.
Bankruptcy is seen as a last resort for companies in Sweden; they typically attempt to restructure operations and reduce staff before considering closure.
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