Swedish Sick Pay Rules scares away jobs – new survey shows


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Friday, 03 June 2011
Wondering why despite the powerful economic performance for the Swedish economy at the moment there is still high unemployment, a suggested reason has been identified.

The Swedish Federation of Business Owners known in its Swedish acronym F´┐Żretagarna claims that between 25,000 and 55,000 jobs could be lost as a result of complex issues in the companies' sick pay liability rules.


The organization has commissioned a polling organisation, Skop which sought the opinion of 600 companies in Sweden. Ten percent of them have replied that they failed to recruit because of the sick pay rules. A further six percent have given up recruiting several times.

Since the 1990s, employers have the responsibility for to pay sick worker for a certain number of days, as at today, they need to pay sick workers for two weeks. This is huge financial burden and increased uncertainty for their workers productivity and returns. As such companies have tried to be as frugal as possible when it comes to recruitment and have reduced payroll.
By Team

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