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2020 – time for new collective agreements

The new year has just begun, bringing with it some exciting new challenges and opportunities, even within the field of payroll. 2020 will be an eventful year as the majority of Sweden’s collective agreements are due to expire and will be renegotiated. As ever, Azets is well prepared.  

There are roughly 670 collective agreements covering payroll and working conditions in the Swedish labour market. 485 of these will be renegotiated in 2020. The first renegotiation comes in March with the Retail Trade Agreement between the Swedish Trade Federation and the Commercial Employees’ Union, the Hotel and Restaurant Agreement between Visita and the Hotel and Restaurant Workers’ Union, and normative agreements within industry.

Are you following the negotiations in your agreement area? Are changes underway at local level?

It is important that all employers comply with the agreements made, including all legislation, regulations, and collective agreements, as well as local agreements of an individual nature. Breaching an agreement can be costly, even if this happens unintentionally. It can result in disputes and compensation claims, as well as damage to the brand and your reputation as an attractive employer. Good regulatory compliance ensures predictability and security for employers and employees alike.  

Although the changes brought about by the new agreements are yet to be determined, we can already assume that adjustments will need to be made to payroll system setups. If wages are to be calculated in accordance with the agreement, the payroll manager must have access to all the agreements that apply to your business, and there must be agreement as to their interpretation and application. 

Thanks to our broad client base, Azets has extensive experience and expertise in the legislation, regulations, and agreements from many different industries. Please get in touch if you have any questions about how an agreement should be applied.