When damages are claimed against an employer, this often covers both general damage and economic loss.
In cases where there are no objective grounds for the termination, the general claim for damages usually amounts to approximately SEK 150,000–175,000, as well as a claim for economic loss representing an amount corresponding to your loss of income, up to 32 monthly salaries.
For example, if you have been employed for 2 years, and, provided certain conditions are fulfilled, you would typically be able to claim 16 monthly salaries along with compensation for general damages as described above. According to the Employment Protection Act, you can make claims for economic loss in an amount corresponding to 32 monthly salaries, depending on the length of employment (see the Employment Protection Act, Section 38 and 39).
It falls on the employer to prove that they had reason to dismiss you; the requirements to demonstrate that the reason was valid usually have a very high threshold. You must have grossly neglected your obligations to the employer (see the Employee Protection Act, Section 18). These kinds of disputes are, however, almost always settled out-of-court, if represented correctly.
We understand many employees are lost as to what to do when they have been dismissed or terminated, and thus often choose to do nothing. It’s our experience, however, that there is often no objective or legal ground to support their termination or dismissal. It is important to be aware of the periods of limitation that may apply in your case, typically starting from the date the employment was terminated or when the dismissal occurred (see the Employment Protection Act, Sections 40–41). That’s why it’s advisable to act promptly! In our view, it’s worthwhile to have a lawyer assess the matter as soon as possible. If you are a union member, you can also contact them, but keep in mind that union representatives typically are often laymen when it comes to legal representation.
Have you been terminated?
Or were you, in the eyes of the law, in fact dismissed (read more about dismissals above)? Was there a so-called redundancy? Was the termination due to personal reasons? Or was it a termination due to a fictitious shortage of work?
It’s not uncommon that employees are terminated without a substantive basis. We have been privy to situations where the employer has used invented causes to get rid of a specific employee. The notice of termination may refer to shortage of work while the real reason is something different. This is called fictitious shortage of work. If instead you have been terminated due to personal reasons, it may still be worthwhile to find out what rules apply as the requirements on the employer are very high when it comes to these types of terminations.
A termination or dismissal can be declared invalid. For help with declarations of invalidity regarding terminations or dismissals, please contact us for a free assessment by clicking here.
“Real” Shortage of Work
When a real shortage of work prevails, the employer must adhere to the order of priority rules (see the Employee Protection Act, Section 22). The seniority principle means employees with longer employments shall have priority over employees with shorter employment periods. Many employers do not correctly adhere to this rule, however, meaning they may be susceptible to claims for damages.
If you believe the employer’s real reason for your termination is different from the one stated in the notice of termination, or if you believe the employer has breached the seniority principle, you should contact a lawyer; if you have full union membership, you may also contact them or your union representative. You can claim damages against the employer if they are in breach of the Employment Protection Act (read more about damages above).
Do you need representation?
If you are not a union member, or if you haven’t received the assistance you need, we would be happy to provide you with a free assessment of your case. If we believe there are reasons to challenge the dismissal or termination, or if there is an opportunity to claim damages against the employer, we will inform you accordingly. Contact us for a free assessment by clicking here.