Compliance

Financial Penalties

Monetary sanctions imposed for infringements of the Working Hours Act.

Definition

Financial Penalties (Sanktionsavgifter) are administrative monetary sanctions imposed on employers for infringements of specific provisions of the Arbetstidslagen, such as exceeding limits on ordinary working hours, on-call time, or overtime, or failing to provide adequate rest periods. Introduced from July 1, 2014, these penalties are often calculated per hour of unauthorized work per employee and can be substantial, serving as a key enforcement mechanism by the Swedish Work Environment Authority.