Short-term lay-offs mean, in short, that the state steps in and subsidises large parts of employees' salaries in connection with staff lay-offs, so that employees do not have to experience as large a reduction in their salary as the lay-off. The employee can, as a result, reduce their working hours, which reduces the employer's salary costs by up to half. Because the state subsidises this, the employee can still receive over 90 percent of their salary.
From 7 April, employers will be able to apply to the Swedish Agency for Economic and Regional Growth (Tillväxtverket) for the support, which also applies retroactively from 16 March 2020. More information on how to do this is available on Tillväxtverket's website.
The requirements to be eligible for the support are as follows;
- The company must be able to demonstrate that it has encountered financial difficulties that could not reasonably have been foreseen or avoided.
- The company must have support for short-term lay-offs in central and/or local collective agreements. If there is no collective agreement, there must be a written agreement with at least 70 percent of the employees within an operational unit. The reduction in working hours must be the same for all participating employees.
- The employer must have used other available measures to reduce labour costs, such as redundancies of non-critical staff who are not employed on a permanent basis.
- Companies that are undergoing restructuring or are insolvent at the time of application cannot receive the support.
The costs between employees, employers, and the state will be distributed according to the table below.
| Level | Reduction in working hours | Salary Reduction |
Employer | Statistics | Employer's reducing labour costs |
| 1 | 20 | 4 % | 1 % | 15 % | – 19 % |
| 2 | 40 | 6 % | 4 % | 30 % | – 36 % |
| 3 | 60 | 7,5 % | 7,5 % | 45 % | – 53 % |
The government submitted its proposal on this to the Riksdag on Thursday. It is likely that this proposal will be voted through in the Riksdag soon.
If your company needs support in finding a solution regarding short-term lay-offs or wishes to discuss other possible measures, please contact your MOORE office and we will assist you.
