Severance pay and negotiated exits
Received an offer of a negotiated exit or severance pay?
A negotiated exit agreement is normally based on an agreement between you and your employer. There is no general statutory right to severance pay. Before signing, it is important to understand what you receive and what you give up.
- Understand the terms before signing
- See which claims you may be waiving
- Free initial assessment
What is a negotiated exit agreement?
A negotiated exit agreement is an agreement under which you and your employer agree that your employment will end on negotiated terms. It differs from dismissal on notice, where the employer unilaterally terminates employment and must have objective reasons.
What is severance pay?
Severance pay is compensation paid by the employer when employment ends. The amount and form are determined by the agreement. There is no amount to which everyone is entitled.
What should be reviewed before you sign?
- when employment ends
- pay and compensation, and how they are paid
- how the notice period is handled
- whether you are released from your duties
- annual leave and compensation for unused leave
- bonuses or commission, where applicable
- any impact on your pension
- confidentiality clauses
- non-compete or non-solicitation restrictions, where applicable
- the wording of an employment certificate or reference
- which claims you waive under the agreement
- tax implications at a general level
- implications for unemployment benefits at a general level
Why have the agreement reviewed?
A review helps you understand what the agreement actually means: what you receive, which rights you waive and what practical consequences it may have. A signed agreement can be difficult to change afterwards.
Your union or your own lawyer for a negotiated exit?
If you are a union member, your union can often help with a negotiated exit, and it is useful to hear what it can offer. Some people nevertheless want an independent assessment, for example for a second opinion. Both approaches can work. Read more about how a case is handled or about what you can do when your union does not pursue the case further.
Frequently asked questions about negotiated exits and severance pay
Am I entitled to severance pay?
There is no general statutory right to severance pay. Severance pay is normally based on an agreement between you and your employer or, in some cases, on a collective agreement or employment contract.
How much severance pay is normal?
There is no standard amount. The terms depend, among other things, on the circumstances of the employment, any potential claims, the parties' bargaining positions and what the parties agree.
Can I negotiate an exit agreement?
A negotiated exit agreement is a contract, so its terms can be discussed before it is signed. How negotiations should be approached depends on the situation.
How does severance pay affect unemployment benefits?
A negotiated exit can affect unemployment benefits, for example depending on whether you are considered to have voluntarily left your employment or on how the compensation is structured. Contact your unemployment insurance fund for information about your particular case.
Do I have to sign immediately?
No, you do not normally have to sign on the spot. Ask for the agreement in writing and take the time you need to understand it before deciding.
Can I hire my own lawyer despite being a union member?
Yes. You choose who assists you. Your union can often help with a negotiated exit, and it can be useful to hear what it offers, but you may also want an independent review.
Would you like to understand where you stand?
Get a free initial assessmentSources
- Employment Protection Act (1982:80) (Swedish Parliament)
- Swedish Tax Agency (Swedish Tax Agency)
- Swedish Unemployment Insurance Inspectorate (IAF)
The information on this page is general and does not constitute an assessment of your individual case. Rules may change and collective agreements may contain different provisions. Contact us for an assessment of your specific situation.