Employment Contract - What Should the Agreement Contain?


by Katarina Carlsson

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On June 29, 2022, the rules in the Employment Protection Act (EPA) regarding requirements for written information about employment conditions for newly hired employees changed.


What does LAS say about employment contracts?

When an employer and an employee enter into an employment relationship, they have agreed to a contract with information about the position and employment. According to LAS, there are no formal requirements for how an employment contract should be concluded between the parties. In other words, an employment can be agreed upon verbally or in writing, and the employer is not obligated to provide a written employment contract. There is also no legal requirement for how the employment contract itself should be structured. 

However, there are regulations regarding the information that an employment contract must contain. The employer is required to provide written information about employment conditions to newly hired employees. 

The employment contract becomes effective as soon as it is signed by both parties and becomes a binding agreement, with those who have signed it required to follow its terms.


Content of the employment contract

As mentioned earlier, the employment contract does not need to be in writing, but it is important that you, as an employer, provide written information about certain employment conditions. You should do this within seven days after the employee has started working. Other information should be provided no later than one month after the employee has started working.

The requirement for written information about employment conditions applies regardless of the form of employment and the length of the employment.

The information that must be provided in writing includes the following:

  • Employer's name and address
  • Employee's name and address
  • Date when employment starts
  • Where the employee is to perform their work. If the employee does not have a specific workplace, this should be stated.
  • Job duties, occupation, and job title. A job title should also be supplemented with a job description.
  • Type of employment. There are two types of employment: permanent employment and fixed-term employment.

The main rule according to EPA is that the employment contract is permanent employment unless you have agreed otherwise. Other important aspects to consider include, among others:

  • What happens if an employee works as a temporary agency worker?
  • What happens if the conditions of employment change?
  • What about the duty of loyalty?
  • What about non-competition agreements?
  • What does confidentiality entail, and what should your organization consider?
  • What is the difference if the employer is bound by a collective agreement or not?


Termination immediately after the agreement

If the employee wishes to terminate the employment immediately after the contract has been signed, the notice period stated in the employment contract applies.


Avoiding a dispute

To avoid a dispute in the future and to clarify employment conditions, it is both appropriate and practical to have a written employment contract signed by both parties before the employment begins. Employment conditions should be clearly defined in this contract. 

There is much to consider when it comes to employment, everything from onboarding, pensions, and insurance to well-being, routines, and policies. We at Azets can assist you in tailoring your employment contracts to meet all EPA requirements and design the employment and its process specifically for your organization. This is a good way to make your employees feel secure with their employment.

Please feel free to contact us at hrsupport.se@azets.com for more information.


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About Katarina Carlsson

Katarina jobbar som HR Advisory Consultant på Azets och har ca 30 års erfarenhet av strategisk och operativ HR inom både det privata och offentliga näringslivet.