Nordic Employment Law Bulletin - May 2026

Highlights from Denmark

• Dismissal of a pregnant employee was justified. The Western High Court has issued a ruling on whether the dismissal of a pregnant employee was unjustified. In this case, the employee was employed by a dental clinic that was declared bankrupt. Shortly after bankruptcy, all employees were dismissed and released from their duties. Approximately one month later, the dental clinic was transferred as a business transfer. The employee brought an action against the employer seeking severance payment, arguing that she had been dismissed during her pregnancy in connection with the business transfer. The Western High Court stated that the time of dismissal was decisive when assessing whether the dismissal was reasonably justified by the bankruptcy, rather than by the business transfer or the employee’s pregnancy. When the employee was dismissed, all other employees were also dismissed. The dental clinic was not in operation at the time of dismissal, and the negotiations regarding the transfer of the business did not reach a stage where the bankruptcy trustee had any real certainty that an agreement on the business transfer would be concluded. Therefore, the Western High Court found that the dismissal of the employee was not based on the business transfer and her pregnancy, and the dismissal was consequently justified. 

   

• Government formation negotiations. Government formation negotiations are still ongoing. As a result of the general election, there have been no legislative activities. Once a government has been formed, the legislative activities will resume.

Highlights from Finland

• Implementation of the Pay Transparency Directive postponed – The government proposal to implement the Pay Transparency Directive was expected on week 16 in April 2026 but presentation of the proposal to the Finnish Parliament has again been postponed. Currently the expected week of presentation is week 25 commencing on 15 June 2026. When the national law would enter into force depends on the fall schedule of the Parliament and it is possible that the new rules will not be in force by end of the year.

• Proposed changes to Employment Contracts Act not in force yet –  In our previous editions of the Nordic Employment bulletin we have informed of proposed changes to Employment Contracts Act that were planned to enter into force on 1 April 2026. Employers should be aware that these changes did not enter into force as planned and therefore, the post-employment re-employment right of redundant employees still applies in companies of all sizes and regardless of headcount, the requirements for signing a fixed-term agreement have not been alleviated and the layoff notice period based on the law is still 14 days.

Highlights from Norway

• Annual wage settlement leads to strike in the hospitality sector

  This year’s wage settlement is a full-scale collective bargaining round, meaning that all collective agreements concluded by the Confederation of Norwegian Enterprise (Nw: NHO) are open for renegotiation, not just salary.

  Under Norway’s wage bargaining model, wage negotiations begin in the manufacturing sector, in line with the "Front Runner Model" (Nw: Frontfagsmodellen). This means that industries exposed to international competition negotiate first, and their settlement establishes the wage norm for the rest of the labour market.The negotiations in manufacturing began on Monday 23 March, when the United Federation of Trade Unions (Nw: Fellesforbundet) and the Federation of Norwegian Industries (Nw: Norsk Industri) exchanged their demands. On 13 April, the parties reached an agreement, thereby averting a major strike. The wage norm for 2026 is 4,4 percent. 

• The Supreme Court expected to provide guidance on the “particularly independent position” exemption from working time 

  Norway’s Supreme Court has agreed to hear an appeal of a decision made by Gulating Court of Appeal on the scope of the exemption from the working hours chapter in the Working Environment Act (WEA) for employees in a "particularly independent position" (c.f. WEA section 10-12 (2)). The case is scheduled for 2nd and 3rd September 2026. A ruling from the Supreme Court could become the first to provide clear guidance on how this exemption should be interpreted and applied in practice.

  The Court of Appeal case concerned a project manager in a construction company who claimed overtime pay. The court held that the employee was not entitled to overtime because his role fell within the "particularly independent position" exemption. In reaching that conclusion, the court assessed the employment contract, the employee’s level of responsibility, and the degree of freedom he had to organise his own tasks, priorities and working time. In its overall assessment the court placed weight on the fact that he managed several projects, had responsibility for progress, finances, and coordination, and worked with a high level of independence.

Highlights from Sweden

• Long-term unemployment tightens its grip on older workers —Long-term unemployment rose in Sweden last year, with older jobseekers far more likely than younger ones to remain stuck without work. According to Statistics Sweden (Sw. Statistiska centralbyrån), the number of people unemployed for more than six months increased by 19,000 to 171,000, accounting for 36 % of all unemployed. Figures from the Swedish Public Employment Service (Sw. Arbetsförmedlingen) show a similar trend for those unemployed for over a year, with the sharpest concentration among people aged 55–66. In this group, the share of long-term unemployed is roughly three times higher than among 18–24-year-olds. Labour market analysts point to structural change, shifting skill demands and persistent age bias as key explanations. While younger people often move between temporary jobs, studies and education, older employees who lose their jobs are more likely to remain sidelined. As labour demand recovers, authorities expect those with in-demand skills and experience to benefit first.

   

• Sweden (again) raises the bar for labour migration — The Swedish parliament has adopted new rules tightening the conditions for work permits for third‑country nationals, with a clear focus on higher wages and stricter employer responsibility. Under the new framework, the minimum salary threshold for most work permits will increase to 90 % of Sweden’s median wage — currently SEK 33,390 per month — up from the previous 80 % level. The government will, however, be able to grant exemptions for certain occupations, where pay instead may be set at collective bargaining agreement minimums. Stricter pay rules will also apply to intra‑corporate transferees and seasonal workers, who must now receive at least the full‑time wage even if working part‑time. Seasonal work permits may also be extended from six to nine months. Employers face tougher sanctions, with doubled penalty fees for illegal employment. The new rules enter into force on 1 June 2026.

   

• Off-duty crime not enough to justify dismissal, court rules — Sweden’s Labour Court has ruled that the Police Authority unlawfully dismissed a civilian employee following a serious traffic offence committed off duty. The case concerned a civil servant who was convicted of aggravated drink‑driving and gross negligence in traffic. Although he stated during the incident that he worked for the Police Authority, the court found no evidence that he attempted to influence the investigation. The offence was deemed a one‑off incident linked to alcohol dependency of a medical nature, and the employee had immediately agreed to rehabilitation. The court held that, unlike sworn police officers, civilian staff without police powers are not bound by the same implied conduct obligations. As a result, neither summary dismissal (Sw. avsked) nor ordinary termination with notice (Sw. uppsägning) was justified. The dismissal was declared invalid, and the employer was ordered to pay both general and economic damages. The ruling underscores that off‑duty misconduct, even when serious, does not automatically justify termination.