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Coronavirus: New salary support scheme for companies

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Legal news
calendar 3 June 2020
globus Norway

On 28 May 2020, the Norwegian government announced a new, temporary salary support scheme for companies, non-profit organizations and foundations. Due to the high number of temporarily laid off employees and unemployed, companies may now receive a cash grant when taking back their own temporarily laid off employee. The grant will be issued per employee.

If the proposal is passed, companies will be able to apply for support for the months of July and August 2020. All companies with commercial activities and turnover will be able to apply for support. The support will be calculated based on loss in turnover compared to the same month in 2019. Companies with a loss in turnover of more than 30 % will receive support at 15.000 NOK per returned employee.

Support for companies with a loss in turnover under 30 % will be calculated based on (percentage of loss in turnover – 10 percentage points) * 75.000. Companies with a loss in turnover below 10 % will not be entitled to support. As it will not be possible to calculate a loss in turnover for non-profit organizations and foundations, the support for such entities will be set at 10.000 NOK per returned employee.

In order to be entitled to support, the company must bring back their own temporarily laid off employees by the start of July and August 2020, at the same percentage of position as prior to the temporary layoff. A further condition for support is that the company does not temporarily lay off the returned employees, or any other employees, for the duration of the scheme’s lifespan.

The government anticipates applications to be possible within the end of September 2020. The proposal is further expected to be submitted soon.

We are monitoring the proposal closely and we will follow up when there is news to report.

If the proposal is passed, companies will be able to apply for support for the months of July and August 2020. All companies with commercial activities and turnover will be able to apply for support. The support will be calculated based on loss in turnover compared to the same month in 2019. Companies with a loss in turnover of more than 30 % will receive support at 15.000 NOK per returned employee.

Support for companies with a loss in turnover under 30 % will be calculated based on (percentage of loss in turnover – 10 percentage points) * 75.000. Companies with a loss in turnover below 10 % will not be entitled to support. As it will not be possible to calculate a loss in turnover for non-profit organizations and foundations, the support for such entities will be set at 10.000 NOK per returned employee.

In order to be entitled to support, the company must bring back their own temporarily laid off employees by the start of July and August 2020, at the same percentage of position as prior to the temporary layoff. A further condition for support is that the company does not temporarily lay off the returned employees, or any other employees, for the duration of the scheme’s lifespan.

The government anticipates applications to be possible within the end of September 2020. The proposal is further expected to be submitted soon.

We are monitoring the proposal closely and we will follow up when there is news to report.

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Anders

Etgen Reitz

Partner

Sofie

Aurora Braut Bache

Associate

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