New rule set out to limit misuse of general fixed term employments under Swedish law

The most important change relates to instances where general fixed term employments are automatically transferred into indefinite term employments. The rules prior to 1 May 2016 that occasioned in a general fixed term employment automatically transferring into an employment of indefinite term once an employee has been employed for two years within a five year period, are still in force. However, the new rule entail that in addition to the aforementioned rule, an automatic transfer will also take place in circumstances where an employee has been employed in a combination of different types of fixed term employments (e.g. temporary substitute employment or seasonal work employment) during a consecutive period of two years. An employment will be deemed consecutive if a gap of no longer than 180 days has taken place between each employment. Under the new rule, the consecutive period does not have to be calculated within a five year period thereby limiting the possibility for employers "piling up" different types of fixed term employments for the purpose of avoiding such employments from automatically transferring into indefinite term employments is thus limited.

In Finland a fixed term employment requires a justified reason. As an exception to this main rule, from 1 January 2017 an employer may hire long-term unemployed employees on fixed term employments without a so called justified reason for a certain period of time.