06 August, 2026
Examples of external engagements that may pose risks
Examples of secondary employment and external engagements that may be relevant to assess during recruitment include:
- Running a business in the same industry as the employer, which may constitute a competing business activity.
- Board positions in customer, supplier or competitor organisations, where conflicts of interest may arise.
- Consultancy work alongside employment, particularly when services are provided to organisations operating in the same market.
- Financial interests or ownership stakes in companies that could affect a candidate’s independence in the role.
- Public appointments or external engagements that could affect trust in the organisation or the candidate’s impartiality.
- Extensive secondary employment or side activities that may affect performance or availability in the role.
What rules apply to secondary employment and external engagements?
As a general rule, employees in Sweden have the right to engage in activities outside their primary employment. Under the Swedish Employment Protection Act (LAS), employers may only restrict or prohibit such activities where there are objective grounds for doing so, for example where they create conflicts of interest, affect work performance or compete with the employer’s business.
Additional rules may be set out in employment contracts, collective bargaining agreements and internal policies. It is therefore important for both employers and employees to understand the rules that apply within the organisation.
- Work-preventing activities – activities that affect an employee’s ability to perform their duties satisfactorily.
- Competing activities – business activities that compete with the employer or risk harming the employer’s interests.
- Trust-damaging activities – activities that may undermine confidence in an employee’s impartiality, integrity or professional judgement.
Private and public sector – different rules for secondary employment and external engagements
The rules governing secondary employment and external engagements differ between the private and public sectors in Sweden.
For employees in the private sector, secondary employment is primarily governed by the Swedish Employment Protection Act (LAS), the employee’s duty of loyalty, collective bargaining agreements and employment contracts. There is no specific law that generally prohibits secondary employment. Instead, the assessment is based on whether the activity risks harming the employer’s interests, affecting work performance or breaching contractual obligations.
For employees in the public sector, additional rules apply under the Swedish Public Employment Act (LOA). According to Chapter 7 of the Act, employees may not engage in activities that could undermine public confidence in their impartiality or damage the reputation of the authority they work for. These are commonly referred to as trust-damaging secondary employment activities (förtroendeskadliga bisysslor).
As a result, public sector employers are often subject to stricter requirements when assessing external engagements and potential conflicts of interest.
Can secondary employment be regulated in an employment contract?
Yes, employers may regulate secondary employment and external engagements through employment contracts. It is common for contracts to require employees to disclose certain external activities or to prohibit activities that compete with the employer’s business.
However, such restrictions must be reasonable and serve a legitimate business purpose. Employers cannot generally impose a blanket ban on all secondary employment, but they may restrict activities that create conflicts of interest, affect work performance or risk harming the organisation.
It is therefore important that candidates are informed of any requirements or restrictions relating to secondary employment during the recruitment process.
Secondary employment during recruitment
Once a person has been hired, an employer’s ability to intervene in secondary employment is limited by legislation, contractual obligations and employment law principles. The assessment typically focuses on whether the activity affects work performance, competes with the employer’s business or is otherwise inappropriate.
During the recruitment process, however, the situation is different. Employers generally have greater freedom to assess a candidate’s suitability for a role and may take external engagements, business interests and secondary employment into account as part of their decision-making process.
How can background checks help identify secondary employment and conflicts of interest?
DISA offers a range of background screening services that can help employers gain a more complete understanding of a candidate’s external engagements, business interests and potential conflicts of interest.
Company and business interest screening
A company and business interest screening is particularly relevant when employers need to understand a candidate’s connections to other organisations. The screening can reveal current and previous roles, such as managing director or board member, as well as business interests that may create conflicts of interest or financial risks. This can be especially valuable when recruiting executives, board members and other candidates in positions of strategic or financial responsibility.
Declaration of integrity and suitability
The declaration of integrity and suitability complements other background screening services. Through a digital questionnaire, candidates can disclose information about secondary employment, external engagements, board positions, financial circumstances and potential conflicts of interest.
Social media and online presence screening
In relation to secondary employment, this screening can help identify publicly visible engagements, business activities and external interests that may not be disclosed in a CV or job application. It is particularly relevant for roles involving trust, security, access to sensitive information or reputational risk.
Identify potential risks early in the recruitment process
No single screening can determine whether a secondary employment activity is permitted or prohibited. However, combining different background screening services can provide employers with a more complete basis for assessing potential risks and making informed recruitment decisions.
Questions about secondary employment
It depends on the rules that apply within your organisation. Some employers require employees to disclose secondary employment in accordance with employment contracts, collective bargaining agreements or internal policies. If an activity could affect your work performance or create a conflict of interest, you should generally inform your employer. If you are unsure, review your employment contract, consult your organisation’s policy or speak to your manager or HR department.
No, studies are not normally considered a secondary activity or external engagement. However, if your studies affect your working hours or job performance, it may be advisable to inform your employer.
Yes, in certain circumstances. An employer may prohibit or restrict secondary employment if it affects work performance, competes with the employer’s business or creates conflicts of interest. Rules relating to secondary employment may also be set out in employment contracts, collective bargaining agreements or internal policies. However, employers cannot generally impose a blanket ban on all forms of secondary employment.
Example: A procurement manager has a side engagement with one of the company’s suppliers, which could create a conflict of interest.
Yes, many people run their own business alongside their primary employment. This is generally permitted, provided the business does not compete with the employer, create conflicts of interest or affect work performance. If you are unsure what applies in your situation, review your employment contract or speak to your manager or HR department.
Example: An employee working for a fashion company operates an online store selling similar products. If the business competes with the employer’s offering, it may be considered a competing activity.
A trust-damaging external engagement is an activity that may undermine confidence in an employee’s impartiality or in the organisation they work for. The concept is primarily used in the Swedish public sector and is regulated by the Swedish Public Employment Act (LOA).
Example: A municipal employee serves on the board of a company that may be affected by decisions made within the authority where they work. This could raise concerns about the employee’s impartiality and therefore be considered a trust-damaging external engagement.
A competing external engagement is an activity, business interest or assignment that competes with an employer’s business or risks harming the employer’s interests.
Example: Running a competing business or providing consultancy services to a competitor.
Yes, in some cases. Employers may take secondary employment and external engagements into account when assessing a candidate’s suitability for a role. This is particularly relevant if the activity could create conflicts of interest, compete with the employer’s business or affect confidence in the role.
Example: A candidate applying for a senior leadership position serves on the boards of several companies. The employer may need to assess whether these engagements create conflicts of interest or affect the candidate’s independence in the role.
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