Anna Jerndorf

Employment Law News Q3 2024

In this issue, we focus on several key rulings from the Swedish Labor Court that have significant implications for employers. We delve into case AD 2024 no. 72, where H&M was scrutinized for its handling of employees on parental leave during a company reorganization, and case AD 2024 no. 66, where Region Stockholm faced allegations of disability discrimination. Additionally, we highlight the new rule under the Agency Work Act, which will soon be applied for the first time, requiring companies to offer permanent positions to long-term agency workers. Stay informed on the latest legal developments impacting your workplace.

AD 2024 nr 66

In case AD 2024 no. 66, the Swedish Labor Court examined whether Region Stockholm had violated the Discrimination Act (2008:567) by canceling a job interview for a wheelchair-bound applicant applying for an assistant nurse position in a neonatal unit. The main considerations in the court’s assessment were whether the cancellation constituted direct discrimination and if reasonable accommodations were provided. The court found no evidence of direct discrimination, concluding that the job interview was not canceled solely due to the applicant’s disability, but rather based on her ability to perform the required work duties. Additionally, the court ruled that Region Stockholm had not failed to fulfill its accessibility obligations under law, as the specific care needs of the patients could not be adequately addressed through accessibility measures. Accordingly, the Labor Court ruled that Region Stockholm had not breached the Discrimination Act.

TM reflection: This case law is interesting as it clarifies how far an employer must accommodate the workplace to enable a disabled employee to perform their job. The case is based on the specific circumstances, but the Labour Court provides guidance on how employers should approach such assessments.

AD 2024 nr 72

In case AD 2024 no. 72, the Swedish Labor Court examined whether H&M Hennes & Mauritz Sverige AB had violated the Parental Leave Act (1995:584) by allowing the transition period (Sw. övergångsperiod) for two employees on parental leave to run during their absence. H&M underwent a major reorganization and offered employees reassignments to new positions with lower employment levels. According to the applicable collective bargaining agreement, an employee in such a situation is entitled to a certain transition period.

Two of the employees were on parental leave when they received the reassignment offer. The primary consideration was whether the company’s actions constituted prohibited discrimination under the Parental Leave Act, which safeguards employees from being disadvantaged due to their parental leave. The court also assessed the interpretation of the collective bargaining agreement regarding transition periods and their applicability during an employee’s parental leave. Accordingly, the Labor Court concluded that H&M had not breached the Parental Leave Act, as the transition period was managed in accordance with the collective bargaining agreement without any discriminatory intent or effect.

TM reflection: This case is not only interesting for employers under the same collective bargaining agreement as H&M, but also for other employers, as a rule that in principle corresponds to that of the collective bargaining agreement was adopted in connection with the 2022 legislative amendments to section 7b of the Employment Protection Act (1982:80).

New rule in the Agency Work Act (2012:854) will be applied for the first time soon

As part of the reformed Employment Protection Act (1982:80), the Agency Work Act (2012:854) introduced a new rule. As previously reported, the rule mandates that client companies must offer permanent employment to agency workers who have been placed at the same operational unit within the client company for more than 24 months over a 36-month period. Alternatively, the client company can compensate the worker with two months’ salary. This rule, effective from October 1, 2022, is about to be applied for the first time. It is therefore time to review the engagement period if you engage agency workers to avoid missing any deadlines.

As these recent cases demonstrate, employment law is constantly evolving. To ensure your organization remains compliant and avoids costly legal pitfalls, it’s crucial to stay informed and proactive. If you have any questions or if you need tailored legal advice, don’t hesitate to reach out to our team of experts. 

Anna Jerndorf
Head of Employment
Mobile: +46 76 00 283 32
E-mail: anna.jerndorf@tmpartners.se

Carl Östlund
Advokat, Senior Associate
Mobile: +46 76 00 283 30
E-mail: carl.ostlund@tmpartners.se

Vilma Hansson
Associate
Mobile: +46 76 00 283 39
E-mail: vilma.hansson@tmpartners.se

Legal advisor to Team Olivia in connection with sale to Attendo

We advise Team Olivia in connection with the sale of Team Olivia’s Swedish care division, including the operations within Individual & Family and Home Care business, to Attendo. The division, which in the transaction is valued at SEK 950 million on a cash and debt free basis, includes appr. 120 care units with close to 3,000 employees, with annual sales of appr. SEK 1,350 million.

The transaction is subject to customary conditions and approvals and is expected to close in the beginning of 2024.

Team Olivia’s main owner is Procuritas Capital Investors IV GP Ltd.

Our team consists of:

• Sten Hedbäck (Partner, M&A)
• Vaiva Eriksson (Partner, M&A)
• Fredrik Gustafsson (Partner, Tech)
• Anna Jerndorf (Partner, Employment Law)
• Arvid Riemer (Associate, M&A)
• Johan Mörlin (Associate, M&A)
• Tom Bovaller (Associate, M&A)
• Lovisa Björk (Associate, M&A)
• Louise Warvsten (Associate, M&A)
• Carl Östlund (Senior Associate, Employment Law)
• Vilma Hansson (Associate, Employment Law)
• Amela Balijaj (Senior Associate, Real Estate)
• Johan Aronsson (Senior Associate, Real Estate)
• Erik Woodcock (Senior Counsel, Tech)
• Alexandra Rosell (Senior Associate , Tech)
• Carolin Von Oelreich (Senior Associate, Banking and Finance)
• Mikaela Nordh (Senior Associate, Banking and Finance)
• Anastasia Lindström (Associate, Banking and Finance)

For more information, please contact Sten Hedbäck:
E-post: sten.hedback@tmpartners.se
Tel: +46 76 00 283 05

TM & Partners has served as Swedish legal counsel to OpSec Security

TM & Partners has served as Swedish legal counsel to OpSec Security in connection with the acquisition of Zacco, a leading intellectual property (IP) management company.

OpSec Security is a world leader in brand authentication and integrity with a heritage that spans four decades. OpSec serves many of the world’s leading brand owners, licensors, and media rights owners and are an innovator in addressing brand value and vulnerability across physical and digital domains. They are also a provider of high-security and compliance solutions to governments.

TM & Partners’ team consisted of :

• Vaiva Eriksson (Partner, M&A)
• Anna Jerndorf (Partner, Employment)
• Sara Jacobson (Associate, M&A)
• Lovisa Björk (Associate, Employment)
• Arvid Riemer (Associate, M&A)
• Amela Balijaj (Senior Associate, Real Estate)
• Alexandra Rosell (Senior Associate, Tech)

TM & Partners ranked by Chambers Europe 2022

Chambers and Partners Europe has published the 2022 ranking of Europe’s leading law firms, where we can proudly state that we are ranked in three categories.
TM & Partners are ranked partly as a firm, partly in the following business areas: M&A, banking and finance and employment law. In addition, seven of our partners are ranked: Anna Jerndorf, Cecilia Rudels, Tobhias Brandell, Safa Mahmoudi, Niclas Högström, Per Granström & Sten Hedbäck.

Equality all the way through

At TM & Partners we believe that the path to a successful business is equality. With an almost equal management team, we are today among the best in the class. Read more about our thoughts on a equal business life here.

Employment Law News – What’s new in Swedish Employment Law (First Quarter 2021)

Prolongation of Covid-19 support measures

Several Covid-19 support measures have been prolonged and will continue to apply during the spring of 2021, amongst others:

• The short-time work allowance will continue to apply until 30 June 2021.
• The restructuring support will continue to apply until April 2021. A prolongation to June 2021 is awaiting approval from the European Commission.
• The Swedish state will continue to bear the employers’ higher costs for sick pay until April 2021.
• The temporary abolishment of the requirement for employees to present a doctor’s certificate from sick day eight and onwards has already been prolonged until April 2021, as well as the abolishment of the qualifying deduction for sick pay (Sw. karensavdrag).

Several appeals regarding the short-time work allowance

The media has reported that the Swedish Agency for Economic and Regional Growth in several cases has not applied the law regarding short-time work allowance correctly and thereby made wrong decisions regarding allowances to companies during the pandemic. In at least 20 cases tried by the Administrative Court of Stockholm, the court has stated that the agency has not applied the law correctly and over 60 employers have had their appeal ruled in their favor. However, in a clear majority of the over 500 cases tried by the court so far, the court has ruled in favor of the agency. Over 5,000 appeals have been made to the Administrative Court of Stockholm and more can be expected.

Ruling from the Labor Court regarding the requirement to give notice of termination in person

In a recent case from the Labor Court, the court ruled that it was not reasonable to demand that the notice of termination, with mandatory information on actions to be taken in order to claim damages or invalidity, should have been given to the employee in person (as is the main rule). The court accepted that the employer had sent the notice in a registered letter to the employee’s last known address when the employee did not show up at the meeting with the employer because the employee had symptoms of Covid-19. Thus, the time limit had begun to run ten days after the employer had sent the registered letter to the employee, despite the fact that the employee did not collect the letter and thus did not receive any notice of action for invalidity. [AD 2021 nr 3]

Consequences of the employer not correcting misunderstandings regarding a termination

In a recent case from the Labor Court, the court tried whether an employee had been summarily dismissed or resigned voluntarily when she after a meeting with the managing director did not perform any work. The employee thought that she had been terminated during the meeting whereas the employer held that the employee had taken time off and thereafter did not show up for work. The court stated that where the employer has reason to believe that an employee perceives himself as dismissed, the employer must clarify the situation and correct any misunderstandings regarding the employment. The employer may not use any uncertainty or ambiguity to allow the employment to end. Since the employer had not corrected the misunderstanding, the court found that the employee had been summarily dismissed. Since there was not just cause for termination, the employer was obliged to pay damages in accordance with the Swedish Employment Protection Act. [AD 2021 nr 14]

If you would like more information or specific advice, please contact our L&E team.

TM & Partners have advised Footway on its acquisition of Caliroots

TM & Partners have advised Footway AB in connection with its acquisition of Caliroots, a strong brand within streetwear and sneakers. The acquisition is made by means of an acquisition of Caliroots’ trademarks, internet domains and inventory.

Footway was founded in 2010 and is an e-commerce company with sales of products within sports and fashion via Footway.com, Sportamore.com, Brandos.com, Solestory.se etc. Its shares are listed on Nasdqq First North Growth market. For more information on the transaction, please see Footway’s press release here.

TM & Partner’s team was led by:

• Sten Hedbäck (Partner, M&A)
• Peter Törngren(Partner, RIB)
• Anna Jerndorf (Partner, Employment)
• Fredrik Gustafsson (Partner, Tech)

The rules on state aid for temporary reduced salary and working hours due to Covid-19

The new rules on state aid for reduced salary and working hours render a large number of questions. There is only limited guidance on how to interpretate the new rules which has been drafted in a hurry by the Government. The Swedish authority Tillväxtverket continuously updates its website with the latest information available. Till växtverket is the authority that will decide on which employers are entiteld to the state aid.

For further information, please read more here.

The rules on state aid for reduced salary and working hours are only one of several actions employers may take to reduce their costs for personnel.

If you would like more information, or specific advice, please contact our L&E team:

• Anna Jerndorf
• Lisa Ericsson
• Cecilia Bergman

Törngren Magnell has assisted Pelican Self Storage in the sale of a logistics portfolio

Törngren Magnell has assisted Pelican Self Storage, a leading Nordic actor within storage renting, and its main owner Evergreen Real Estate Partners S.À R.L, in the sale of five of its eleven sites in Sweden. The storage sites are located in Västerås, Örebro, Linköping, Norrköping and Åkersberga. Shurgard, the purchaser, will take over the sites including employees and customers. For more information, please see pressrelease.

Törngren Magnell’s team consisted of Safa Mahmoudi (responsible partner), Catharina Danielson and Amela Balijaj (real estate), as well as Anna Jerndorf and Cecilia Bergman(employment law).

Anna Jerndorf elected as the Swedish Board Member of the EELA

Törngren Magnell is proud to announce that Anna Jerndorf has been elected as the Swedish Board Member of the EELA (European Employment Lawyers Organization), one of the most respected employment lawyers organizations in the world. The aim of the EELA is:

• to bring together practicing employment lawyers across the European union
• to improve the implementation and understanding of the social dimension
• to exchange views on the manner of such implementation
• to strengthen links between EU employment lawyers.

Törngren Magnell assisted in the sale of Trimma to Visma

Törngren Magnell has advised the founders of Trimma AB, a company that develops and provides tools and services within business intelligence, analysis and budgeting, in connection with the sale of the company to Visma. Based in Umeå, Trimma in 2014/2015 had a turnover of SEK 43 million and an EBITDA of 12.7 million, with 40 employees.

Törngren Magnell’s team was led by Sten Hedbäck (partner) and included Jens Haneklint (partner) and Philip Reznik (associate). Anna Jerndorf (partner) was responsible for labour law advice, assisted by Cecilia Bergman (associate).