Nora
Accounting Consultant

Extended Short-Term Layoff for up to Seven Months

Short-term layoffs can currently be granted for a maximum of nine consecutive months. The government will propose that this time limit be temporarily removed during the period up to June 30, 2021. In practice, this means that short-term layoffs that have been granted during 2020 will be able to be extended by up to an additional seven months, or until June 30, 2021, at the latest.

During the period up to June 30, 2021, the support will continue to be strengthened compared to the ordinary levels in the law. In January, February and March, the subsidy rate will be 75 percent, which is the same level as the support is at this year. During April, May and June, the subsidy rate will be 50 percent. For December 2020, the subsidy rate is 75 percent according to existing rules.

The extension is combined with stricter handling when applying for approval for support to ensure that support is only given to employers who meet the requirements for support and that misuse is prevented.

The government will also propose that the Swedish Agency for Economic and Regional Growth’s administrative appropriation be strengthened by a total of SEK 450 million.

Source: The Government