Norway: Government will cover expenses for entry quarantine

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 regjeringen.no (10.11.2020) The government proposes NOK 480 million for a new compensation scheme. The scheme will cover some of the expenses companies have when foreign labor must have the entry quarantine.

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The government proposes NOK 480 million for a new compensation scheme. The scheme will cover some of the expenses companies have when foreign labor must have the entry quarantine. Companies are compensated a fixed amount per employee per day.  For the time being, a rate per employee per day of approximately NOK 800–1000 is assumed. These provision will enter into force on November 1st and be valid until 28 Febraury 2021.

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Will cover expenses for entry quarantine

Press release | Date: 10.11.2020

The government proposes NOK 480 million for a new compensation scheme. The scheme will cover some of the expenses companies have when foreign labor must have the entry quarantine.

- Many companies in Norway, including in the shipbuilding industry and in the construction industry, are dependent on foreign labor to maintain normal operations. For these companies, the quarantine rules entail large costs. The scheme we are now launching will help companies to maintain production despite strict quarantine measures, says Iselin Nybø.  

Large costs for infection control measures  

Import infection constitutes an increasing degree of the proportion of infection that now exists in Norwegian society. The government has therefore tightened the requirements for entry quarantine. Employers must provide a suitable place to stay with a private room, also for employees with leisure quarantine, if they do not use quarantine hotels. 

The quarantine rules entail large additional costs associated with handling foreign labor in an infection-prone manner. This applies, among other things, to costs for accommodation, salaries and follow-up of workers who are in quarantine. At the same time, the infection control measures result in lower efficiency and profitability in production.  

- The goal of the new scheme is to help companies in the demanding situation they are in, says Nybø.  

Fixed amount per employee per day  

The scheme means that the companies are compensated a fixed amount per employee per day.  

For the time being, a rate per employee per day of approximately NOK 800–1000 is assumed.  

The scheme will be designed so that unfortunate incentives to increase the scope of foreign labor are avoided. It will therefore not cover all the costs a company has in carrying out the entry quarantine.  

Valid until February 2021 

The scheme applies for the period 1 November 2020 to 28 February 2021. The Government will consider whether the scheme should be extended in light of the infection situation. It has not yet been decided who will manage the scheme.