Sweden: An invalid exit agreement found to have same legal effects as an invalid dismissal

The case concerned an employee whose exit agreement with a company had previously been declared invalid by the Labour Court. The declaration meant that her employment had not been terminated through the agreement. The case mainly concerned whether the employee should be entitled to salary during the period between when she had left the employment, until the time when the exit agreement was declared invalid.

The Labour Court found no regulations or case law that was directly applicable to this specific situation, but found it reasonable to analogically apply the legal effects of the invalidation of a dismissal or summary dismissal. Hence, the employee should be entitled to salary during the disputed period. However, since the employee had received severance pay, this amount was deducted from the compensation.

For more information on these articles or any other issues involving labour and employment matters in Sweden, please contact Robert Stromberg, Partner at Cederquist (www.cederquist.se) at robert.stromberg@cederquist.se
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