Nordic Employment Law Bulletin - July 2026
In our monthly Nordic Employment Law bulletin our employment lawyers across the Nordic region highlight relevant news and trends on the Nordic employment market scene. The bulletin intends to provide high-level knowledge and insight. Want to learn more? Our experts will be happy to hear from you.
Highlights from Denmark
The Danish Supreme Court clarifies limits of temporary agency work under Danish law – On 18 June 2026, the Danish Supreme Court delivered a judgment concerning the Danish Act on Temporary Agency Work in two cases involving temporary assignments.
The Supreme Court held that temporary agency workers who fall within the scope of the Danish Act on Temporary Agency Work do not occupy the position of service required under the Danish Salaried Employees Act and therefore cannot simultaneously be covered by that Act. The Supreme Court further clarified that neither the duration of an assignment nor repeated extensions automatically removes a relationship from the scope of the Danish Act on Temporary Agency Work. However, assignments must remain genuinely temporary, and any extension must be objectively justified by the user company’s needs.
In the first case, two temporary workers were assigned to an IT department for approximately 25 months, with seven extensions. The Supreme Court found the extensions justified due to uncertainty about when the IT function would be phased out and therefore the Danish Act on Temporary Agency Work applied.
In the second case, a temporary worker was assigned as a supply chain analyst for 3.5 years with four extensions. The Supreme Court found that there was no sufficient objective justification for the prolonged duration. Consequently, the Danish Act om Temporary Work did not apply, and the temporary agency was ordered to pay salary during the notice period, salary during sickness in accordance with the Danish Salaried Employees Act, and compensation under the Danish Act on Fixed-Term Employment.
- Bill amending the Danish Act on Aliens – The Danish Ministry of Immigration and Integration has submitted a bill to the Danish Parliament amending the Danish Act on Aliens. It is proposed to introduce a new collective agreement-based pay limit scheme for foreign workers. The scheme aims to make it easier for companies to hire international employees by lowering the salary threshold compared to existing schemes. The overall objective is to attract and retain needed labour. The scheme will only apply to foreign nationals from selected countries, for example, USA, the UK, Australia etc. To obtain a residence and work permit under the scheme, the foreign employee must, among other things, have been offered a job with an annual salary of at least DKK 322,000. The position must be covered by a collective agreement to which the employing company is a party. In addition, companies must be certified in order to use the scheme. The bill must now be considered by the Danish Parliament before the scheme can enter into force. If the bill is adopted, it is scheduled to take effect on 1 January 2027.
Highlights from Finland
- Changes to post-employment re-employment obligation – A significant change to Employment Contracts Act entered into force on 1 June 2026. Employers employing less than 50 employees no longer have an obligation to offer same or similar work to a redundant employee for up to 6 months after the employment has ended. However, applicable collective labour agreement may still oblige the employer to offer work as before. The collective agreement may also allow the employer to deviate from this obligation by agreeing with an employee representative or directly with the employees.
- Layoff notice period reduced – Also as of 1 June, the layoff notice period based on Employment Contracts Act was reduced from 7 days to 14 days. Applicable collective labour agreement may still stipulate for a longer notice period, though, which must be then followed.
Grounds for signing fixed-term agreements alleviated? – The most awaited change to the Employment Contracts Act has been the employer’s right to sign fixed-term agreements for up to 12 months without justified reasons which is now in force. However, the right comes with limitations:
- The agreement must be the first employment relationship between the employer and the employee during the previous five years calculated as of signing the fixed-term agreement.
- If the length of the agreement is less than 12 months, it cannot be extended or renewed.
- Either party may terminate the agreement by giving notice once the employment has continued for at least six months.
- Before the employment ends, the employer must inform the employee whether it would be possible to continue the employment either as permanent or as a new fixed-term employment contract, if there is a justified reason for the new fixed-term agreement. This information must be given in writing within one month upon the employee’s request.
If the employer is considering hiring an employee for the same or a similar position before or once the fixed-term contract has ended, the employer must first offer the role to the former fixed-term employee. After employment the obligation applies for a period equal to one-third of the duration of the expired fixed-term employment relationship. The offer must be sent without delay to the address provided by the employee. If the employee does not respond within two weeks of the offer being sent, the employer may offer the role to someone else.
The above obligations and restrictions do not apply if the fixed-term agreement has been signed with justified reasons.
Highlights from Norway
Automotive industry now covered by the general application of collective bargaining agreements - From June 15, 2026, employees in parts of Norway's automotive industry are now entitled to a statutory minimum wage after sections of the industry's collective bargaining agreement were made generally applicable. The regulation covers repair, servicing, maintenance, painting, bodywork, and warehouse operations. It also applies to employees working in car care, tire changes, and tire storage.
Under the new rules, the minimum wage rates vary between NOK 208 and 237 per hour, depending on years of experience and whether the employee is skilled or unskilled worker. In addition to wage requirements, employers must provide necessary work clothes and protective footwear at no cost to employees.
The automotive industry is now the tenth industry in Norway to be covered by a generally applicable collective agreement. The measure is designed to strengthen worker protection, combat social dumping, and ensure that compliant businesses are not undercut by companies that fail to meet basic labor standards.
The Court of Appeal deems dismissal during sickness absence unfair (LH-2026-19395) - On June 16, 2026, the Court of Appeal, contrary to the district court, ruled that the dismissal of a night-shift cleaner in a 50 % position was not objectively justified, and awarded compensation for loss suffered, future loss of earnings, and compensation for non-economic loss.
The employee had been on extensive sick leave since 2023. The Court found that the employer's initial accommodation measures were adequate during the early stage of the absence, including assigning the employee to shifts as an additional worker rather than as part of the regular staff, and conducting regular follow-up meetings.
From spring 2024 onwards, however, the Court found that the attempts were no longer sufficient. In particular, the employer failed to prepare a realistic follow-up plan, did not ensure a gradual and careful increase in work, and did not obtain qualified assistance from the occupational health service despite requests and clear recommendations from the Norwegian Labour and Welfare Administration. For that reason, the Court held that the employer had not fulfilled its duty to provide adequate accommodation during this later period. The judgment is not yet final and binding.
The decision can be found (in Norwegian only) HERE.
Highlights from Sweden
- No updated Act, but no pause on pay transparency preparations for the government — As noted in our previous Bulletin, Sweden's attempts to obtain a postponement of the implementation deadline were fruitless. Following this, the Government has instructed the Equality Ombudsman (DO) to continue preparations for its eventual implementation. The instructions include initiatives focused on employers' pay audit obligations, with the aim of improving understanding of current practices and identifying what support employers may need to prevent pay discrimination. The implementation of the Directive therefore remains firmly on the agenda in Sweden, and further clarity will hopefully follow in due course. In the meantime, our recommendation would be that employers should not view any delay on the implementation as a reason to pause their own preparations.
- Less work, more debate? —Working time reduction remains high on the agenda as politicians, employers and trade unions gather at the Almedalen Week, Sweden’s annual political forum on the beautiful island of Gotland. A number of seminars focused on shorter working hours, with participants debating whether reduced working time can be combined with wage growth, productivity and continued competitiveness. The questions divide the political camps. Left-leaning voices, including the Green Party, has advocated gradually shorter working hours, highlighting benefits such as improved wellbeing, reduced stress and the idea that productivity gains should translate into more free time. Meanwhile, Centre-right actors, including the Christian Democrats, warn that reduced working time risks weakening Sweden's competitiveness and gives rise to redundancies, particularly in export industries and welfare services. They instead stress that such changes should be handled through collective bargaining agreements rather than political decisions. With some already pointing to the 2027 collective bargaining round, working time reduction looks set to remain a key and contested issue in Sweden's policy debate.
67 and holding —Sweden confirms future retirement benchmark. The Swedish Government has determined that the reference retirement age (Sw. riktålder) for 2032 will remain 67 years of age, unchanged from previous years. The reference retirement age functions as a benchmark for pension-related age limits and forms part of Sweden's efforts to maintain pension levels as life expectancy increases. For employers, the decision provides continued predictability regarding age-related thresholds in the Swedish pension system. It also serves as a reminder of the ongoing policy focus on longer working lives and retaining experienced employees in the workforce.
