The central organisations on the employer and employee entered into the Basic Agreement in 1938, also known as the Saltsjöbads Agreement, which is still in effect today, reinforcing the Swedish model of cooperation between the social partners, the employer and employee central organisations, and the state’s expressed policy of neutrality to labour issues.[7] Five main topics were covered in the Basic Agreement: A Labour Market Council was established, which through mutual appointments to the Council, the central organisations would deal with specific labour market issues. Second, a negotiation procedure was established between the parties as to handling labour disputes. Third, employers conceded the right to freely terminate and/or lay-off employees, agreeing instead to a procedure by which the union would be notified in such cases, and if the parties were unable to resolve the issue, the matter would be referred to the Council. The counterbalance to this concession by the employers was the fourth point in the agreement, limiting the rights of employees to take industrial actions in certain contexts, such as cases of retaliation or potential damages to third parties, proscribing a duty to maintain industrial peace. Finally, the parties agreed that industrial actions that could potentially disrupt vital public interests were to be assessed by the Council for any threats posed. If these threats were deemed too great, the industrial action was to be enjoined by the Council. The State during this period up until the 1970’s refrained to a great extent from statutory regulation of the relationships on the labour market, permitting the social partners to regulate these matters instead through collective agreements.