In Exchange for Employment Protection – An Analysis on Sweden’s Managerial Position and the UK’s Employee Shareholders

Abstract: This essay describes which categories of employees that are exempted from employment protection in Sweden and the United Kingdom. The focus of the essay will be the UK’s employee shareholders and Sweden’s employees in a managerial or comparable position, since these two categories give up their protection and receive some form of compensation, and/or some other form of protection in return. The essay describes what protection these categories are missing and what they receive instead. The employee shareholder status has a clearer definition in the law than managerial position has, which leaves less room for uncertainties, while there have been many cases in the Swedish Labour Court regarding who has a managerial position. In exchange for their employment protection, employees in a managerial position receive salary- and employment benefits equal to or greater than the law, as well as still being covered by the law, if the Swedish Labour Court considers the benefits being equal to or less than what the Employment Protection Act provides. Employee shareholders receive shares worth at least £2,000 in the company. However, unlike company managers, they will remain exempted from the law no matter what happens to their benefits (i.e if their shares lose value).