Termination for redundancy under Swedish law

Redundancy can arise when operations change and an employer wishes to reduce or reorganise staffing. Employees at risk of termination need to separate several questions: objective grounds, whether another role should be offered, selection and possible preferential rights after employment ends.

Objective grounds and the employer's decision

Under section 7 LAS, redundancy may constitute objective grounds for termination. This does not mean that every termination described as redundancy is automatically lawful. Legal assessment must establish the actual situation and whether the real reason is, for example, circumstances personal to the employee.

A transfer of an undertaking under section 6b LAS is not itself objective grounds under section 7. The Act does not, however, prevent dismissals for economic, technical or organisational reasons involving workforce changes. Each change therefore needs analysis of its substance.

Redeployment under section 7 LAS

Termination lacks objective grounds if it is reasonable to require the employer to provide other work within its organisation. Before employment ends, alternative work and the employee's ability to perform it therefore need assessment.

A redeployment offer should specify the work and terms. Accepting or declining can affect the subsequent assessment. The word redeployment alone does not establish whether you must accept. Employment terms, duties and other circumstances should be reviewed before responding.

Selection is not determined only by service

Section 22 LAS contains redundancy selection rules. Before determining the order, an employer may exempt up to three employees it considers particularly important to continued operations. If exemptions are made, no further exemptions may be made in a termination within three months of the first termination.

Selection is normally determined by operating unit and, where applicable, collective agreement area. For non-exempt employees, total service is the starting point; greater age takes priority where service is equal. If continued work requires redeployment, sufficient qualifications are needed. Collective agreements may contain other permitted rules.

Reduced working percentages through reorganisation

Section 7a LAS contains specific selection rules for certain reorganisations where employees with equal duties at the same operating unit are offered new work involving only a lower working percentage. An employee accepting such an offer has a transition period under section 7b with their existing working percentage and employment benefits.

The transition period starts on acceptance and equals the notice period that would otherwise apply, capped at three months. Distinguish this from other changes to hours or duties, which may require assessment under different rules.

Negotiations and written termination notice

Section 29 LAS refers to sections 11–14 of the Co-Determination Act (MBL) for negotiations before a redundancy termination decision. Which unions the employer must negotiate with depends on collective agreement coverage and affected employees, among other matters. Even an employer without a collective agreement may have negotiation duties under section 13 MBL.

The specific advance-notice procedure in section 30 LAS concerns termination for personal reasons and summary dismissal. It is not a general redundancy procedure. A termination notice must nevertheless satisfy section 8 LAS and state, among other things, whether the employee has preferential re-employment rights and whether notification of a claim to those rights is required.

Preferential re-employment rights

Under section 25 LAS, an employee dismissed for redundancy may have preferential re-employment rights. This can also apply where a fixed-term employee is not offered continued work because of redundancy. Conditions include sufficient qualifications and service. The main rule is more than twelve months' total employment during the preceding three years.

A specific rule requires more than nine months of special fixed-term employment during the preceding three years for priority to a new such employment. A separate six-month rule applies to new seasonal work. The scope must therefore be checked against the employment category.

For an employee given notice, the right normally runs from notice until nine months after employment ends. It is usually limited to particular operations, operating units and agreement areas. Where information under section 8 or 16 has been provided, section 27 requires the right to be claimed before it can be exercised. Declining an offer that should reasonably have been accepted results in loss of the right. Section 25a contains a separate preferential right for part-time employees seeking more hours.

Not every error makes termination invalid

Under section 34 LAS, termination lacking objective grounds can be declared invalid at the employee's request. This does not apply where the sole challenge concerns selection rules. A selection breach alone may instead give grounds for damages. An MBL breach does not itself automatically make termination invalid either.

Available claims and their deadlines depend on the breach. Sections 40–42 LAS contain short notification and court-action periods. Do not wait until the final employment date to check them.

Take the next step through a defined legal assignment

Arbetsrättsjuridik can review termination notices, redeployment offers, selection documents and possible preferential rights. We also help employers plan and manage employment changes within an agreed assignment.

Describe your matter and request a quote. Advice and legal analysis are provided for a fee by agreement. We work online throughout Sweden, including clients in Jönköping, Stockholm, Gothenburg and Malmö. Sending an enquiry does not mean acceptance of an assignment or responsibility for deadlines.

Also read about termination for personal reasons and our services for employees and employers.

Legal sources: LAS sections 2b, 6b, 7–14, 22–27, 29, 34 and 38–42, and MBL sections 11–14. Legislation checked on 21 October 2026. Employment category, collective agreements and specific rules must be checked for each matter. LAS and MBL are available on the Swedish Parliament's website.

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