Building an inclusive labour market

Due to the Employment Protection Act No. 80 lesser capability because of age, illness or acquired disability is not an objective ground for dismissal and employers must make all reasonable efforts to retain the worker. As a result in Sweden 50% of disabled persons with reduced ability to work are employed.

The Swedish general labour law provides persons with disabilities employment rights on an equal basis with others. In the case of reduced ability to work, employers need to undertake all reasonable efforts to retain the worker. HISTORY: Sweden stands out for its comprehensive statutory protection of employees against arbitrary or unjustified dismissal consisting of the Employment Protection Act No. 80 of 1982 (widely referred to by the initials LAS), which represents a further development of original legislation dating from 1974. When first introduced, on the basis of tripartite negotiations, trade unions feared that the high standards of workers’ rights, which formerly were agreed on in collective agreements, would be quickly weakened by politicians. However, with the passing of time, the LAS acted to uphold a standard of employment protection. With decreasing collective bargaining power, the act can be expected to gain even more importance. In 2007, the act was amended and flexibility measures, such as the possibility of making short-term contracts, were introduced in its article 5. SUMMARY: The Swedish general labour law provides persons with disabilities employment rights on an equal basis with others. In the case of reduced ability to work, employers need to undertake all reasonable efforts to retain the worker. Employers’ obligations under the Swedish Employment Protection Act No. 80 of 1982 seem to be the key to achieving the OECD’s top disability employment rate. Most importantly, 50% of disabled persons with reduced ability to work are employed, which is significantly higher than countries such as Denmark, where the rate is as low as 26%. Indeed, persons with disabilities in Sweden enjoy the same rights of employment protection as their non-disabled counterparts, as lesser capability because of age, illness or acquired disability is not an objective ground for dismissal and employers must make all reasonable efforts to retain the worker.

Solution, Innovation and Impact

PRINCIPLES: Protection from unjustified dismissal A dismissal must have objective grounds such as economic redundancy or personal circumstances. Employment rights on an equal basis with others Lesser ability to work due to age, illness or disability is not an objective ground for dismissal. The employer has a duty to rehabilitate the employee, try to adjust the workplace and transfer her or him to other suitable work. Fair dismissal Dismissal is only fair if an employee's ability to work is permanently reduced to such a degree that she or he can no longer be expected to perform work of any significance for the employer. Safeguards in the case of collective redundancy Employees with a reduced ability to work enjoy protection in the case of redundancy as they are exempted from the usual the last-in, first-out rule. KEY FEATURES: The LAS is an example of general labour law which promotes an inclusive labour market for persons with disabilities. Its protection, which applies from the first day of employment, is essentially designed to ensure that the normal case for an employee is an employment of unspecified duration and that an employee in such permanent employment cannot be dismissed unless the employer is able to prove just cause. Objective grounds for dismissal are deemed not to exist if an employee could reasonably have been transferred to other work (article 7). With a view to keeping people with reduced ability in work, the LAS sets standards for the accommodations which must be provided by employers in order to ensure that workplaces are inclusive. In the case of lesser capability because of age, disease or disability, the employer first has to try to adjust the workplace, rehabilitate the employee or transfer the employee to other suitable work. Only if all reasonable efforts fail can the situation constitute just cause for dismissal, particularly if it constitutes an undue hardship for the employer. If deemed unfair, the dismissal is void and the employee with disability must be reintegrated in the workplace at the expense of the employer. In the case of redundancy, employees with a reduced ability to work are exempted from the last-in, first-out principle (article 23). If unfairly dismissed, the employee receives compensation and damages. In 2010, Sweden’s employment rate for persons with health problems or disability was at 62%, the highest in the entire OECD. In addition, around 50% of persons with disabilities and reduced ability to work are in employment – a situation which is significantly different from other countries such as Denmark, where only 26% of disabled persons with reduced ability to work are employed. In 2009, 75% of Swedish employees with reduced ability to work reported that they required adaptation of their working conditions, such as adapted work duties, work rates, working time, aids etc., and the absolute majority stated that they received the help needed.

Funding, Outlook and Transferability

At present, changes to article 22 on collective redundancies (which possibly affect article 23). Beyond the act’s standards for accommodations which must be provided by employers, specific guidance on reasonable accommodation and employers’ incentives for workplace adaptation are needed.