Nordic Employment Law Bulletin - September 2026

Calculating compensation under the Danish Act on Equal Treatment. The Eastern High Court has decided that holiday allowance should not be included when calculating compensation under the Danish Act on Equal Treatment. The case concerned a male employee who was dismissed after informing his employer that his partner was pregnant. The parties agreed before the Eastern High Court that the employee was entitled to compensation corresponding to approximately nine months’ salary. The only issue was whether the holiday allowance of 12.5% should be included in the salary basis. The Eastern High Court noted that neither the wording nor the preparatory works of the Danish Act on Equal Treatment addressed whether holiday allowance should be included. The Eastern High Court held that the relevant salary basis should be interpreted as the employee’s monthly salary without the addition of holiday allowance.

Government proposes new "wear and tear" pension supplement for long-serving workers – On August 24, 2026, the Norwegian Government presented its proposal for a new "sliterordning" (wear-and-tear pension scheme) in the National Insurance Scheme, aimed to employees who, after many years in working life, are unable or unwilling to remain in employment until ordinary retirement age.

Under the proposal, eligible retirees could receive an annual pension supplement of 0,25 G (approx. NOK 34,000 based on the current G), if they retire five years before the normal retirement age. The supplement would be payable in addition to state pension, occupational pension and any AFP benefits, provided that the individual takes full, ungraded retirement pension and has no earned income alongside the pension.

To qualify, individuals must meet several employment and earnings requirements, including at least 35 years of pensionable income and a recent history of labour market participation. The Government argues that the model is intended to target workers with long careers and relatively low earnings who may otherwise struggle to benefit from future pension reforms. The proposal will be subject to consultation as part of the Government's broader pension reform process. The Ministry intends to circulate specific legislative proposals for consultation during autumn 2026.

LO proposes new AFP model based on pension accrual rather than qualification requirements – LO has presented a proposal to reform the contractual early retirement pension scheme (AFP) in the private sector. Under the current model, employees must satisfy specific qualification requirements close to age 62, meaning that workers who have spent many years in AFP-covered companies can lose the entire benefit if they no longer meet the conditions shortly before retirement. LO's proposal would replace the current qualification-based model with an accrual-based system, whereby employees build AFP entitlements throughout their careers based on years worked in AFP-affiliated companies. The aim is to make the scheme more predictable and reduce the risk of losing AFP due to events such as illness, disability, redundancy, or a change of employer late in one's career.

The proposal will now be discussed and negotiated with NHO, which has expressed concerns that a broader AFP scheme could significantly increase costs for employers. While both parties agree that the current scheme has shortcomings, they remain far apart on the design and financing of a new model. If LO and NHO reach an agreement, the new AFP scheme is expected to take effect from 1 January 2028.

Tesla strike ends after 1,021 days — but the debate is far from over — Sweden's longest industrial dispute in a century ended on Tuesday, 19 August 2026. It ended without the collective bargaining agreement that IF Metall had fought for since the strike began in October 2023. Despite extensive industrial action, sympathy measures across several countries and broad public support, Tesla firmly withstood the union's request. Many have criticised Tesla’s refusal to enter into a collective bargaining agreement, while others have questioned the union’s handling of the dispute and the impact on its members. The dispute highlighted the challenges of applying traditional industrial pressure against a highly international employer able to adapt operations across borders and absorb significant costs. While the Swedish labour market model is unlikely to rise or fall with Tesla, the outcome has sparked renewed debate about how resilient the model remains when faced with large international employers prepared to resist pressure from the trade unions.

Sweden tops OECD ranking for non-compete clauses — and not in a good way — Sweden has emerged as one of the OECD countries with the most widespread use of post-employment non-compete clauses. According to the OECD's latest Employment Outlook, between 29% and 41% of private-sector employees may be covered by such restrictions. Even more strikingly, many employers surveyed questioned whether all existing clauses would withstand legal scrutiny. The OECD notes that effective regulation depends not only on legal rules but also on how restrictions are understood, communicated and enforced in practice. The findings are likely to add fuel to the already active debate on employee mobility and post-employment restraints.