New case law – Summary dismissal of case worker at Swedish Social Insurance Agency

The case concerned whether there were legal grounds for the summary dismissal or termination of a case worker at the Swedish Social Insurance Agency. In his own application for housing benefit, the employee had failed to report changes in circumstances during the benefit period that were relevant to the assessment of his entitlement.

The parties also disputed whether the dismissal was based on facts the Agency had known for more than two months prior to issuing notice of dismissal—raising the question of whether the Agency had breached the statutory two-month rule. Additionally, the parties disagreed on the allocation of legal costs in the district court.

The Labour Court held that the employee had seriously neglected his duties by repeatedly failing to report changes affecting his eligibility for housing benefit, which led to incorrect payments. Given the high standards of trust and integrity required of employees at the Social Insurance Agency—both professionally and personally—the employee’s conduct, which led to a repayment demand and a police report for suspected benefit fraud, was found to have severely undermined both the Agency’s and the public’s trust. The Court concluded that the employee’s actions constituted a gross breach of duty and that the Agency had legal grounds for summary dismissal.

The Labour Court also found that the Agency had not violated the two-month rule and ruled that legal costs in the district court should be awarded in accordance with the general principle that the losing party pays. The Labour Court therefore upheld the district court’s judgment.

Read more here (in Swedish).