Employment levels in Sweden have been quite volatile in 2023 and 2024, with several major companies in the country announcing significant layoffs. On September 9th, Northvolt became the latest company to announce it would be reducing its workforce.
In early August, the Swedish Labour Ministry announced that the country was facing its highest unemployment rate in a decade, excluding the pandemic period.
This economic landscape has left many workers uncertain about their job security.
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And while receiving a layoff notice is undeniably stressful for anyone, this stress is often magnified for foreigners who may not be completely familiar with the Swedish employment system and their workplace rights.
Without proper knowledge, you might agree to terms that aren’t in your best interest. This can, in turn, lead to decisions that could have long-term career consequences.
The Local has consulted experts in the field to compile an overview of the critical actions you should take if you ever face a layoff in Sweden.
Don’t rush to sign anything
Amanda Herzog, founder of Intertalents in Sweden, a consultancy that helps international job seekers find their dream job in the country, published a popular post on LinkedIn Pulse in December 2023 with multiple excellent tips for workers regarding the Swedish layoff process.
She told The Local Sweden that her recommendations still stand in mid-2024, permitting us to re-share her tips, and pointed to some of the more important ones.
“Never, ever sign a termination agreement on the same day you receive the news,” Herzog advised, noting that the emotional shock can cloud your judgment.
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Instead, find a union immediately, preferably the same day, to get a second opinion on the terms and conditions.
“During my first layoff, I joined a union and sought advice the same day. It took a week to accept their terms, which worked in my favour as the company was keen on a voluntary headcount reduction,” Herzog shared.
Contact a labour or immigration lawyer (if you’re on a work permit)
Losing your job affects your right to stay in Sweden if you’re on a work permit.
You typically have three months to find a new job and submit a work permit application with your new employer (The Local has a more detailed article on the layoff implications on your work permit, which you can find here).
However, Saaya Sorrells-Weatherford, co-founder of the relocation consultancy Emigreat, told The Local that as a foreigner, you might not be familiar with the nuances of the Swedish employment system and could agree to terms that shorten your stay in Sweden.
“If you are given your termination notice, contact a labour or immigration lawyer immediately,” she said.
Consulting with a lawyer ensures you understand your rights and work through facts and applicable regulations, not word-of-mouth anecdotes.
Negotiate your severance, use leverage
Herzog also singled out several necessary actions that workers who are about to be laid off need to consider regarding severance contracts.
“Severance contracts can be negotiated,” Herzog emphasised.
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Nothing is final until you sign the agreement. The company might present the decision as final, but you have leverage.
“A union process can be time-consuming for the company and may not end in their favour,” Herzog said.
Use this to your advantage to negotiate better terms.
“I was able to negotiate a raise during my first layoff, even though I would no longer be working, as well as negotiated two extra working months from the termination date.
“This meant I had seven months total of future salary coming to me. I was also able to negotiate a free cell phone and laptop that I was using at work,” she noted.
Get recommendations early – and build a portfolio of your work
Asking your coworkers for recommendation letters and LinkedIn recommendations before your last day is imperative.
“People forget and move on and are less responsive when they no longer see you daily,” Herzog said.
So, make sure to secure these endorsements while your contributions are still fresh in their minds.
Furthermore, you should compile a portfolio of your work as soon as possible.
Companies can restrict access to files and systems post-layoff, making it crucial to collect relevant data while you still can.
“Start collecting work samples, case studies, photos, results, and important contacts in the same week you receive the news,” Herzog suggested.
Ensure that your layoff is being handled properly
Make sure your layoff is handled appropriately and legally.
“One of my layoffs was mishandled, and I used union support to hold the company accountable,” Herzog recalled.
While legal advice can be expensive, it’s far more affordable than fighting deportation, Sorrells-Weatherford told The Local.
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