Two recent landmark rulings from the Court of Justice of the European Union (CJEU) have shifted the perspective on how part-time employees should be compensated for additional hours worked. This development affects not only employers bound by collective agreements—companies without such agreements should also review their policies to ensure they are fair, transparent, and aligned with developments in the labor market.
In Sweden, there is no specific legislation that outlines in detail how additional or overtime compensation should be calculated. These matters are largely governed by collective agreements, which clarify conditions related to working hours, compensation, and working time limits. For employers without collective agreements, this means a greater responsibility to define how additional and overtime work should be handled—typically through employee handbooks, employment contracts, or other internal policies.
However, the issue has recently come into focus due to two guiding judgments from the CJEU (Cases C-184/22 and C-185/22), addressing the rights of part-time employees to equal treatment when working beyond their regular hours.
The rulings establish that part-time employees must not be treated less favorably than full-time employees, which directly impacts how additional hours should be calculated. This is a clear example of how legal practice is evolving and why it is important to review current policies—even for companies without collective agreements.
Collective agreements are being updated
In response to the aforementioned EU rulings and the evolving perspective on part-time work and working time arrangements, several Swedish collective agreements have already been updated. These changes reflect a shift toward greater equality in how employees are treated, regardless of their employment percentage.
What this means for employers without collective agreements
Even if your company is not bound by a collective agreement, it is wise to adapt to this legal development. Doing so helps ensure that your internal policies remain clear, fair, and consistent with expectations in the labor market.
To prevent misunderstandings and provide clarity around how additional and overtime work is handled, we recommend that you:
- Review your current policies on working hours, additional time, and overtime
- Reassess how working time for part-time employees is managed, considering the EU rulings
- Update employment contracts and the employee handbook as necessary
- Clearly communicate the applicable rules to your employees
- Stay informed about ongoing developments in this area
Being proactive in these matters also helps build trust between employer and employees and reduces the risk of future misunderstandings or ambiguity.
Do you have questions or need support in reviewing your policies?
Don’t hesitate to contact us—we’re happy to help.
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