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Do you need to dismiss an employee? 

Do you need to dismiss an employee?

Occasionally, employees cause damage to business operations in such a way that it becomes unsustainable for the employer to retain their confidence in the employee. At Arbetsrättsexperten, we specialise in labour law and assist employers when it comes to removing employees from service.

Dismissals can be implemented in different ways. If done in an insufficient manner, the dismissal can pose great risks to the employer due to rules regarding compensation claims under the Employment Protection Act. It is therefore important that the employer consider many different components such as with whom the burden of proof lies, the strength of the proof of evidence, and other requirements that are difficult to manage and control. It can be difficult to know what proof of evidence needs to be established or if other approaches are preferred.

Is the employee a union member or not? What financial resources do they have to appoint a legal advisor? These and other strategic components may impact the steps and the assessment of suitable actions and strategies.

To contact an expert for a free assessment, click here.

Have you received a claim from an employee or a trade union?

Occasionally employees or trade unions make claims of financial compensation from employers, usually on weak grounds. Should it turn out, however, that they have the legal right to do so, one can normally, by handling the matter in a systematic and structured way, reduce or eliminate the financial impact on the employer.

Contact us for a free assessment of your case, click here.

Damages

If an employee makes a claim against the employer, they commonly make claims for both general damages and economic losses.

In situations where the employee has been dismissed and the employer is unable to meet the evidence requirements, a general claim for damages usually amounts to approximately SEK 150,000–175,000 in addition to any claim of economic loss, which represents an amount corresponding to the loss of income.

Example: The employee has been employed for 2 years. It is common, provided certain conditions are fulfilled, that the employee may claim 16 monthly salaries + general damages as described above. The employee or their trade union may, according to the Employment Protection Act, make claims for economic losses in an amount corresponding to 32 monthly salaries, depending on the length of their employment (see the Employment Protection Act, Section 38 and 39).

It falls on the employer to prove that they had reason to dismiss the employee and that these reasons were sufficient according to applicable laws and principles. Based on the firm’s experience, it is common that employers are not always fully aware of what legal requirements or evidentiary standards apply to particular actions.

As labour law specialists, Arbetsrättsexperten can assist you in separating the employee from the company or help you undertake other appropriate measures.

Do you need to terminate an employee?

Occasionally, there may be a need to terminate an employee, either due to a shortage of work or for personal reasons.

There is a risk also in such procedures: the employer may have to pay damages to the employee or a trade union afterwards. This can be the case if you have failed to meet certain formalities regarding the dismissal procedure or if the employer, from a legal perspective, did not have objective grounds for termination. One common example is not correctly observing the order of priority rules (the Employment Protection Act, Section 7 and 22).

Have you been summoned to negotiations by a trade union?

A trade union will sometimes convene MBL negotiations (Co-Determination at the Workplace). This is commonly done to make claims against the company or to prevent other measures the company has taken or wishes to take. The legal team at Arbetsrättsexperten are experts in labour law and regularly handle MBL negotiations and other negotiations with trade unions and/or other labour law counterparties.

Is one of your employees often on sick leave?

Frequent absence due to illness among staff is costly for the employer as it results in losses due to diminished production and through sick leave compensation. Sometimes this is due to an employee being sick frequently, sometimes it’s due to drug addictions in the workplace, or sometimes an employee untruthfully claims to be sick. As experts in labour law and staff management, we can support you if one of your employees is frequently sick or claims illness often. This includes everything from rehabilitation plans to employment termination.

Contact us for a free assessment of your issue, click here.

Is one of your employees acting inappropriately or engaged in misconduct?

Misconduct by employees can cause significant difficulties to a business. Misconduct includes anything from late arrival to theft in the workplace. Protecting the business often requires resolute and clear measures; at times this includes the termination or dismissal of the employee. Actions taken incorrectly can prompt significant compensation claims; therefore it is important to seek legal advice prior to taking any measures or legal actions.

Do you have a former (or current) employee who is engaged in a competitive business?

Employees have a duty of loyalty to the employer, including, to some extent, during a period of post-employment. Has one of your employees engaged in competing businesses or ancillary activities? Has an employee utilised knowledge they gained during their employment with you after they have left the company? Disloyalty from a current or former employee can cause significant economic damage to a business. A former employee who starts a new business and uses your pricing information, customer data or other knowledge acquired through their previous employment may be in violation of the Act on Trade Secrets. In principle, it doesn’t matter if the violation occurred after termination or during their employment. You may be entitled to damages from the former or current employee. It is critical in cases such as these to establish necessary proof of evidence. You should get legal advice prior to taking any action in the matter.

Do you need support?

If an employee or trade union makes a claim against you or summons you to negotiations, you can get a free assessment of your case or get preventive support by clicking here.