Nordic Employment Law Bulletin - February 2026

The Danish Labour Court’s decision on temporary agency workers. On 15 January 2026, the Danish Labour Court handed down another decision on temporary agency workers’ employment terms. In this case, four employees were employed by a temporary employment agency to perform work for a Danish authority. The temporary employment agency was bound by a collective bargaining agreement (“CBA”), while the Danish authority was bound by another CBA.

According to the Danish Act on Temporary Agency Workers (the “Act”) (in Danish: vikarloven), temporary agency workers are entitled to at least the same pay and employment terms as the user company’s own employees in comparable positions (“the equal treatment principle”). However, according to the Act, the equal treatment principle does not apply if the temporary employment agency is covered by, or has acceded to, a CBA concluded by the most representative labour market parties in Danmark and applicable throughout Denmark, thereby ensuring that the general protection of temporary agency workers is respected. However, based on the Danish Labour Court’s decision on 3 November 2025 such deviation also requires that the temporary agency worker receives compensatory benefits.

In this case, the Danish Labour Court found that some temporary agency workers had been treated less favourably than comparable permanent employees and had not received sufficient compensatory benefits. Therefore, the employees had a claim for payment of the difference in wages under the two CBAs. However, the employee was not entitled to a compensation as the breach of the principle of equal treatment resulted from EU law and had not been addressed by the legislature or the labour market parties in Denmark.

Progress in implementation of the Pay Transparency Directive – A draft government proposal to implement the Pay Transparency Directive was published on 22 December 2025 and the final proposal is expected on week 11 in March 2026. As expected, the draft follows the minimum requirements of the directive and the changes in the legislation should enter into force on 18 May 2026. The obligations relating to equality plan and pay survey currently in force and concerning employers with 30 employees will remain in force as is. The reporting obligations would apply to employers with at least 100 employees and the reporting would be mainly handled via salary reporting to the income register. Neglecting pay assessment provisions could lead to a sanction amounting to EUR 5,000 – 80,000. A change relevant to all employers is that compared to the current legal status, acts against equality during a recruitment process would going forward be subject to the indemnity stipulated in the Act on Equality between Women and Men. Furthermore, if an employer is bound by a collective labour agreement that includes salary provisions compliant with the directive, the employer could rely on those provisions when assessing work of equal value.

The Supreme Court Clarifies Employment Status of Emergency Foster Parents

On 18 December 2025, the Supreme Court delivered a judgement clarifying whether emergency foster parents (caregivers in an emergency foster home arrangement) should be classified as employees or independent contractors. In the case 31 individuals who had served as emergency foster parents in an emergency shelter claimed for permanent employment, reinstatement, and retroactive registration as employees brought by. The key issue was whether they qualified as “employees” under section 1-8 of the Working Environment Act.

The Court held that emergency foster parents are not employees. Instead, they are contracted caregivers engaged under a distinct assignment relationship. The Court emphasised that both the legal framework and the practical arrangement lacked core characteristics of an employment relationship, including employer control, integration into the organisation, and the level of continuity typically expected in an employment relationship. Accordingly, emergency foster parents cannot be classified as employees under section 1-8 of the Working Environment Act.

The decision can be found (in Norwegian only) HERE. 

Two amendments to the Working Environment Act have been in effect since 1 January 2026 and apply now: the abolition of company-specific retirement age limits and clarifications of the psychosocial work environment requirements.

Employers can no longer set an internal retirement age of 70. The general retirement age is now 72, meaning employees who turn 70 on or after 1 January 2026 may remain in employment until the age of 72. Lower age limits in collective agreements must be phased out by the end of the agreement period, and no later than within three years. A lower age limit may still be set where required for health or safety reasons, provided it is objectively justified and proportionate. 

Amendments to section 4-3 of the Working Environment Act also clarify employers’ psychosocial work environment duties. Psychosocial risks must be assessed and managed in the same way as physical risks, with the Working Environment Act listing examples such as unclear demands, emotional strain, excessive workload and time pressure, and the need for adequate support.

Implementation of the Pay Transparency Directive Is Closing In — The EU directive on pay transparency is supposed to be implemented in Sweden by 7 June 2026. So far, there has been little news from the government, but on 15 January, it submitted a bill to the Council on Legislation that provides much-needed clarity on the changes ahead. The proposed amendments, to be added as a new chapter in the Discrimination Act, include requirements to disclose salary ranges during recruitment, employees' rights to request salary data, and stricter reporting obligations. The bill proposes that the amendments come into force on 1 July 2026, but this is not yet final, Parliament is expected to decide on 17 March. If you haven't already, now is the time to review your salary processes and ensure data quality and traceability. Those who prepare now will avoid headaches later.

Trade Secrets under Lock and Key — From 1 January 2026, stricter rules on trade secrets apply in Sweden. The reform significantly expands criminal law protection, particularly focused on protecting technical trade secrets and innovations. Previously, criminal liability primarily targeted the unlawful disclosure of trade secrets. Under the new rules, it is also a criminal offence to exploit or disclose technical trade secrets even where the individual had lawful access to the information, for example through employment or other business relationships. The amendment introduces two new criminal offences, with penalties ranging from fines to imprisonment. The purpose of the reform is to strengthen the protection of sensitive knowledge and to reduce the risk of information being misused in a way that could harm Swedish innovation and competitiveness. The amendment is a clear signal of the value of trade secrets today and how important it is to prevent industrial espionage for the Swedish economy and research.