What Is a Collective Agreement in Sweden?
A collective agreement is an agreement between a trade union and an employer organisation. It is an agreed framework of rules and regulations for a specific area of business, and acts as a supplement to Swedish legislation. It provides all covered employees with a set of benefits that include for example occupational pensions, extra compensation during illness, and extra compensation during parental leave. A collective agreement may also grant a longer vacation and usually specifies overtime compensation.
It is essential to note that the decision to adopt a collective agreement is voluntary for employers, making it crucial for you to ensure that your employer is covered. The presence of a collective agreement signifies the employer's commitment to high standards.
Collective Agreements Set a Foundation, Not a Limit
The collective agreement provides a foundation for employment contracts and comes with a framework of clauses tailored to suit the branch of business the employer acts in. The collective agreement does not prevent individual employees from negotiating better terms in their individual employment contracts than what the collective agreement stipulates. The collective agreement sets a minimum standard and does not have a limiting effect on employment conditions.