How can small and medium-sized enterprises (SMEs) take care of their employees’ well-being so that they can retain a productive and satisfied workforce? The present study examines the relation between soft controls and the well-being of employees in small and medium-sized enterprises. Soft controls are defined in terms of social safety, autonomy, support and empowerment. We use the job demands resources (JD-R) model and the self determination theory (SDT) to develop hypotheses on how soft controls are related to well-being. The research was based on data collected from the European Working Conditions Survey 2015. The sample consisted of 9255 salaried employees, working in SMEs across 35 European countries. Structural equation modelling showed that soft controls affect employee well-being. In European SMEs especially social safety is an important form of soft control. Social safety appears to promote employees’ job satisfaction and engagement, while preventing burnout and workaholism.