Changes to the rules for temporary layoffs and unemployment benefits

Submitted by socpro on Fri, 05/22/2020 - 16:58
measures summary

Employees will retain 100 % of their pay up to 6G (G = the National Insurance basic amount. 1G is NOK 99 858 per May 1 2019) from day 3 up to and including day 20 of the layoff period. The changes are effective from 20 March, but further details will not be formally in place until next week. Employees will receive any money they are owed once the technical solutions are available and NAV has processed their applications. Employees who have been laid off and are still receiving pay from their employers will be transferred to the new system from 20 March inclusive.
The employer-financed period (the period during which the employer must pay laid-off workers their full pay) has been reduced from 15 to 2 days. After this, the state will take over responsibility for income security for employees who are laid off. This means that any employer who has already been paying laid-off workers for two days or more can stop any further payments. The amendment is effective from 20 March, and the state will take over responsibility for further payments from 20 March inclusive.
The rate of unemployment benefit for people who are laid off and for those who lose their jobs has been raised to 80 % of their income (this is the income calculated by NAV as a basis for paying benefits) for an income of up to 3G and 62.4 % of income between 3G and 6G. This also enters into force on 20 March.
The minimum income entitling someone to unemployment benefit has been reduced to 0.75G in the last 12 months or 2.25G over the last 36 months, with effect from 20 March. These rules apply both to people who are laid off and to those who are unemployed.
The provision on a three-day waiting period before unemployment benefits are started has been repealed. This means that people who are laid off do not have to cope with three days without any income. This amendment also applies to people who are fired and have to apply for unemployment benefit, and is effective from 20 March.
The minimum reduction in working hours entitling employees to unemployment benefit has been reduced from 50 % to 40 % with effect from 20 March. This means for example that a full-time employee who is only laid off for two days a week will be entitled to unemployment benefit. This makes it easier to use a system of 'rolling layoffs' and reduce the burden on individual employees.

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