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In a dynamic job market where both companies and employees' needs can quickly change, there are various types of fixed-term employment contracts. This allows companies the flexibility to manage peak periods, specific projects, or temporary staffing needs.
In principle, the Employment Protection Act (LAS) regulates the different forms of employment. If there is a collective agreement at the workplace, the provisions of the collective agreement apply. Here, we outline some of the most common fixed-term employment types in Sweden according to LAS, when they are suitable, and what employers should consider.
1. Substitute Employment
Substitute employment occurs when a person temporarily replaces another employee, for example, during studies, parental leave, or other absences. If substitute employment lasts for more than a total of two years within a five-year period, it automatically converts into a permanent position with the employer.
2. Seasonal Work
Seasonal work is a fixed-term employment tied to specific periods where demand varies depending on the season. It is common in industries such as tourism or agriculture, allowing employers to adjust the workforce to meet seasonal demands.
Seasonal employees often have re-employment rights, meaning they are entitled to be re-hired in the next season if certain criteria are met. For example, seasonal employees have re-employment rights if they have worked for more than 6 months within a two-year period for the same employer.
3. Specific Fixed-Term Employment
Specific fixed-term employment is a flexible form of employment where the employer does not need to provide a specific reason for hiring someone on a fixed-term basis. It is used, for example, during peak periods or for specific projects. This type of employment converts into a permanent position if the employee has been in a specific fixed-term employment for more than 12 months within a five-year period with the same employer. It can also convert into a permanent position if the employee has had consecutive fixed-term contracts with the employer, where a new employment begins within six months of the previous one ending.
4. Interim Consultant (Interim Assignment)
Interim consultants are hired for a fixed period to quickly fill a critical role, such as during unexpected resignations, sick leaves, or to cover a vacancy during recruitment. It is also a suitable solution if the company needs specialized expertise for a certain period, such as carrying out a change process or driving a specific initiative.
It is most common to turn to consulting firms to hire interim consultants. Since they have a network of consultants, they know who is available on short notice and can match a consultant to your specific needs. This way, you get the expertise you need quickly.
By using fixed-term work arrangements, companies can manage short-term needs and gain access to valuable expertise without creating permanent positions. Regardless of the form used, it is important to be clear about the terms of employment and follow the regulations that apply to your workplace.
Azets can assist you with advice regarding various contracts and employment types. We also have interim consultants who can quickly be on-site to help you with finance, payroll, or HR.
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