Nordic Employment Law Bulletin - November 2025

Decision from the Danish Board of Equal Treatment. The Board of Equal Treatment recently decided whether the dismissal of a male employee was in violation of the Danish Act on Equal Treatment as the employee had recently informed his employer of his intention to take parental leave. 

The Danish Act on Equal Treatment stipulates that an employer may not dismiss an employee or subject an employee to less favorable treatment because the employee has requested to exercise the right to leave, has been absent under the Danish Act on Maternity Leave and Benefits, or has requested changes to the leave or for any other reason related to pregnancy, maternity leave or adoption.

In this case, the employee became a father and about five weeks after childbirth, the employee informed his employer that he did not know when he would take the remaining weeks of his leave. The employee’s work performance was unsatisfactory, and therefore certain demands were made. The employee did not meet the demands, and it was therefore decided internally to dismiss the employee. Two days later, the employee was called to a meeting the next day with the HR manager and a partner. Later that evening, the employee informed an accounting assistant, who was unaware of the planned dismissal, that he would like to take nine weeks of leave from around May/June. The next day, the employee was dismissed. 

The Board of Equal Treatment found that the reverse burden of proof did not apply, as the employee had not notified the employer of the exact date of commencement of the leave within six weeks of childbirth. Therefore, the employer should not prove that the dismissal was not due to leave in the event of childbirth. The employee had not demonstrated any factual circumstances that gave reason to believe that the principle of equal treatment had been violated. The Board of Equal Treatment found that the dismissal was lawful. 

2026 National Budget - Employment Remains a Key Priority

On 15 October, the Government presented its proposal for the 2026 national budget, which continues the current labour market policy. The main priorities are increased employment, a safe and inclusive working life and sound welfare schemes. 

The key points are:

• Employer’s National Insurance Contribution: Current rates will remain unchanged in 2026.
• The government will allocate NOK 10 million to strengthen the Labour Inspection Authority’s capacity and enforce new powers introduced in 2025.
• The government will allocate nearly NOK 600 million to employment initiatives, including more advisors in the Norwegian Labour and Welfare Administration (NAV), closer cooperation with employers, and expanded wage subsidy and job programmes.
• “Youth Pledge”: A new partnership to help more young people enter the labour market.
• Continued efforts under the new Agreement on an Inclusive Working Life (Nw: avtale om inkluderende arbeidsliv, "IA-avtalen"), signed earlier this year between the social partners, focusing on prevention, better follow-up of sick-listed employees, and stronger workplace environment measures.
• Work Incentive Trial: A five-year pilot offering a tax credit to about 100,000 young people (born 1991–2006) to assess how financial incentives affect labour participation.
• Increased funding for "Jobbsjansen", a job opportunity program supporting immigrant women in entering employment or education.

Ruling on resignation during the processing of a dismissal case

The Court of Appeal ruled on whether an employee was required to leave the position while a dismissal case based on the employer’s operational circumstances was pending. Under Norwegian law, the threshold for requiring an employee to leave in such cases is high, as the court must find it "unreasonable" for the employee to remain in the position for the employer’s request to be granted. Despite this, the court found that the conditions were met.

The decision emphasised that there had been a genuine decline in workload and a documented need for downsizing due to financial reasons. The company had announced cost-cutting measures and conducted a sound process in consultation with employee representatives. The court also noted that the employee had refused assistance in finding new work, had made allegations that worsened the working environment, and that there were few relevant tasks remaining.

The case illustrates that, although employees are generally entitled to remain in their position while a dismissal case is pending, employers may in some circumstances succeed in having the employee leave during proceedings — even when the dismissal is based on the company’s operational needs. The decision provides useful guidance for future cases involving termination during ongoing dismissal proceedings.

The decision can be found (in Norwegian only) HERE.

Swedish Labour Court Halts Non-Urgent Cases Amid Budget Crunch — Sweden’s Labour Court is suspending all non-urgent cases for three months—from November 2025 to January 2026—due to a severe budget shortfall. With just 20 staff and an annual budget of SEK 40 million (about EUR 3.5 million), the Court handled almost 400 cases last year, but rising costs for IT, staffing, and leases have pushed its finances to the brink.

Despite appeals for more government funding, the Court received less than expected in the autumn budget. President Lars Dirke warns that the freeze will delay justice and the Court's ability to set legal precedents also well into 2026.
 

Swedish Job Market Turns a Corner: Unemployment Dips Again — on a more positive note, Sweden’s labour market is showing the first real signs of a rebound. For the second straight month, unemployment has edged down, with 364,000 people—6.9% of the workforce—out of work in September. While numbers remain above last year’s, the direction is finally positive.

Adding to the upbeat outlook, Sweden’s unemployment insurance funds report that new benefit claims have dropped for the third year running. September saw an 8.7% fall in first-time applications compared to August, with just under 29,000 people filing. According to acting association head Tomas Eriksson, if this trend holds, it could mark the start of a sustained decline in joblessness among those eligible for benefits.

Employers Push Back on New Wage Rule for Labour Migrants — Swedish employer groups are raising the alarm over the government’s revised plan to hike the minimum salary for labour migrants. From summer 2026, workers must earn at least 90% of Sweden’s median wage—SEK 33,390 (about EUR 3,000) per month—to qualify for a work permit. While this is lower than the previously proposed 100%, employer organisations argue it further undermines Sweden’s wage-setting model.

The Swedish Association of Local Authorities and Regions (Sw. SKR) warns the new threshold could hurt the labour market. Chair Anders Henrikson questions the logic of excluding much-needed workers and insists that wage-setting for labour migrants should remain governed by collective agreements. The requirement is set to take effect on 1 January 2026, pending parliamentary approval this autumn.