Until the end of the 1930s, this view prevailed in Sweden that labor market regulation is a social issue and that the legislator (government and parliament) should refrain from intervening. In the following decades, both the legislator and social partners accepted this division of roles. The applied law was limited and its main goal was to correct and compensate for existing differences between different groups of employees, such as holidays or working hours. In contrast, decision-making on many issues was left to collective agreements. The reluctance of the legislator to intervene in labor laws ended with the adoption of new laws in the 1970s. The Employment Protection Act and the Joint Decision-Making Act were more prominent among other laws. The implementation of these new laws led to the disappearance of the old framework for cooperation and joint responsibility among social partners. After Sweden joined the European Union in 1995, we have witnessed a “second wave” of legislation. These new laws were adopted according to the guidelines of the

According to international standards, membership in trade unions in Sweden is remarkably high. Almost 80% of employees have such professional affiliations. In Sweden, there are three labor confederations that represent workers. The government also has a separate representative as an employer, known as the Agency for Government Employers, which is actively engaged in its activities.

Contrary to recent developments in labor market legislation, collective agreements remain the most important tool for regulating wages and other employment conditions. In fact, collective agreements cover almost all aspects of employment relationships and it is estimated that 90% of employees are covered by one of these agreements. While all government employees are covered by collective agreements, the coverage is lower in the private sector. Collective agreements are generally reached at three levels: national intersectoral agreements, national sectoral agreements, and local or company-level agreements. At the first level, agreements are made between central organizations. These agreements serve as the law and foundation for subsequent collective bargaining. The most important collective agreements are reached at the sectoral level. Sectoral agreements or federations address the details of employment conditions and include clauses on most aspects of employment relationships such as wages, working hours, holidays, etc. However, these agreements are actually frameworks that leave room for adjustments at the local level. Nevertheless, in recent decades, this trend has shifted towards

According to the Swedish labor law, it is generally considered a private law that outlines the rights and responsibilities of individuals that are relied upon in court. Other matters such as termination and compensation are usually extracted from private law. Public law is mainly applied to areas of health and occupational safety.

Reforms and legal amendments have privatized public employment relations, meaning that with a general definition, similar laws are applied to both public and private sectors. Anyone working in the public sector is an employee. The law for public employment has limitations for public sector employees and their protection is ensured under the Employment Protection Act, which covers both public and private sector employees. The idea that public and private sector employees should operate under similar laws is dominant in Sweden’s rights.

Labor disputes and conflicts are within the jurisdiction of general courts and labor courts. The labor court is the highest authority in labor legal disputes and covers the entire country. This court is composed of judges and representatives from employer organizations and trade unions. Some types of labor disputes are directly referred to the labor court. In most cases, cases that are formed by one of the employer organizations or trade unions and oversee employment relationships under collective agreements are sent to this court. In other disputes, the case must be referred to the general court. These cases are formed by employees who are not members of a union or members of a union who pursue their case without the support of their union. Decisions of the general court can be appealed to the labor court. The decisions of the labor court are final. This court handles 100 to 200 cases per year. Trade unions play a key role in monitoring and overseeing the implementation of laws and collective agreements. Labor laws and collective bargaining agreements all require that negotiations take place before

Questions and issues related to determining wages and industrial disputes are generally considered the responsibility of social partners. After problems arose due to nominal wage increases and inflation, as well as a decrease in the value of the Swedish currency, new laws were passed in 2000 for mediation and intervention, with the aim of improving decision-making regarding real wage increases, reducing unemployment, and stabilizing prices. An amendment to the law established a national mediation office, which is not only responsible for mediating between social partners, but also for participating in an efficient labor market. This office has been given more power compared to previous laws, as it can appoint a mediator in disputes without the consent of social partners and, in certain circumstances, postpone actions related to strikes. Social partners can prevent the intervention of this office in negotiations and collective bargaining by agreeing on specific procedures.

A very surprising point is that the Swedish constitution has had very little impact on the labor law historically. It would be very unusual for the labor law to be challenged based on the provisions and articles of the constitution or for the constitution to be referenced in the interpretation of this law. During the period of 1993 to 2003, none of the amendments to the Swedish constitution had any effect on the labor law during their time.