Buyouts – a growing practice in Swedish working life
Short description
This pilot study explores the phenomenon of employee buyouts from a union perspective. The project investigates what precedes an employer’s decision to buy out an employee and how the process unfolds.
The study is based on focus groups and document analysis, conducted in close collaboration with the trade union Akademikerförbundet SSR.
Employee Buyouts Are Increasing – but Research Is Lacking
Research and development reports and the media describe a rise in employee buyouts as a way for employers to circumvent the rules of the Swedish Employment Protection Act (LAS) and the requirement for objective grounds for dismissal.
An employee buyout means that the employer initiates negotiations with the trade union to terminate an employee’s employment in exchange for severance pay. In the public sector, these agreements are funded through taxation.
Negotiations concerning employee buyouts in municipalities and regions are becoming more common, and the process from initiation to agreement is becoming shorter.
There is a lack of research into the role of employee buyouts in the Swedish labour market.
The pilot project aims to examine the buyout process from a trade union perspective.
Results
The first article was presented to Akademikerförbundet SSR, the Swedish trade union for social science professionals, in May 2025.
Three main themes were identified:
- Conflicts of interest
- Lack of trust
- Organisational politics
The conclusion is that employee buyouts are often initiated by the employer, placing both employees and trade unions at a disadvantage. This risks replacing long-term work environment initiatives with short-term solutions.
Ongoing Work
The project is now continuing with:
- A second article combining the focus group data with a media analysis
- Planning applications and training initiatives within Akademikerförbundet SSR
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