Swedish labor regulation and employment issues

Sweden has introduced new labor regulations and is facing scrutiny over existing employment disparities. On October 5, 2026, Royal Decree 723/2026 took effect, requiring sole traders and small to medium-sized enterprises using irregular scheduling to provide written notice regarding shift assignments, cancellations, and task distributions. Legal experts noted that employers may still be required to pay for planned hours even if a shift is canceled due to low customer volume.

Concurrently, new unemployment insurance rules are reportedly impacting workers in LO-affiliated sectors, such as retail, hospitality, and construction, more heavily than white-collar professionals. Because benefit calculations are based on employment days within the previous twelve months, those with intermittent or hourly contracts face reduced protection.

Furthermore, the union Kommunal has highlighted a disparity in working hours within the welfare sector. A report titled ‘Kvinnoarbetstiderna’ suggests that employees in this female-dominated sector work approximately two to four hours more per week than industrial workers with similar irregular schedules, noting a lack of compensation for evening, night, and weekend shifts similar to those implemented in the industrial sector decades ago.