It's official. In the new collective agreements for the industry and trade sectors, part-time employees are entitled to overtime pay under the same conditions as others – and more industries may follow suit. Here’s what you, as an employer, need to know.
What Do the New Rules Entail?
The LO unions – representing blue-collar workers in Sweden – agreed in this year's negotiations to push for overtime pay for part-time employees. When the unions in the industry and shortly thereafter in trade recently presented their new agreements, it was clear that the demand had been included in the settlement.
Until now, many part-time employees have only received their regular hourly wage when working more hours than scheduled, known as additional time. However, this is set to change.
With the new agreements, part-timers will instead be entitled to overtime pay, which could mean an increase of 50 to 100 percent of their salary.
In the industry, where most already work full-time, the effects are expected to be limited. In trade, however, where about 70 percent of employees work part-time and many rely on extra hours, the impact will be much greater. The same applies to sectors like healthcare, care services, restaurants, and tourism if similar changes are implemented there.
What Happens Now?
The agreements in the industrial sector often set the standard for the rest of the labor market – but does this mean that overtime pay for part-time employees will soon be applicable everywhere? This remains uncertain. The Confederation of Swedish Enterprise and other employer organizations view this as an issue for each industry to negotiate individually within the framework of their collective agreements.
Since these changes can significantly impact workforce planning, payroll costs, and the administrative procedures related to overtime, it is wise to keep an eye on how agreements evolve within your specific industry – so you are prepared if (or when) it becomes relevant.
Read more about the new agreement at Arbetet.se (in Swedish).
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