Short-term leave – what applies?

The fact that more and more people are getting short-term leave due to Corona is something that is talked about a lot right now. Today we will take a look at what short-term permitting is actually for something and what to do if it hits you.

What is Short Term Permit?

Being short-term laid off means that you go down in pay and working hours but are not laid off from your work. The reason why this is a very popular alternative right now is that the state wants to avoid high unemployment. Therefore, they go in and cover the costs of a short-term leave so that companies can afford to keep their employees.

Despite this, many companies have a hard time staying afloat without dismissing all their staff and closing down the entire business in the short term.

How much of your salary do you get?

It all depends on what your short-term permit looks like. There are three different steps where you go down a lot in pay and working hours.

In the first step, you lose 20% in working hours and 4% in salary
In the second step, you go down 40% in working hours and 6% in pay
In the third step, you go down 60% in working hours and 7.5% in pay

However, the salary cap for a short-term payout is SEK 44,000, which means that you will not be able to get out as much, regardless of what your salary was before. The big advantage of short-term leave is the large sums the employer earns. In the third stage, the employer actually saves 53% per employee, a saving that can be the difference between continued operations and bankruptcy.

Can all workers become short-term workers?

Unfortunately, the answer to that question is no, there are a few different rules that need to be agreed in order for you to be short-term rather than laid-off. First, you must have worked at your workplace for more than three months before applying.

Second, the support does not apply to employees of a single company belonging to the employer’s family or other relatives living in the household. However, the owners of various companies are actually covered by this support.

Can all companies receive support?

Again, the answer is no. Before a company can receive support, they must have taken all measures to reduce labor costs. The difficulties in the economy must also be caused by Covid-19 and its wake, nothing else. Unfortunately, taking all measures to reduce labor costs includes dismissing any person who is not critical to the business. That is why we, in Sweden at present, despite short-term leave, have an unusually high unemployment rate.

How long does the support last?

As long as possible, a company can receive support for 6 months. After these six months it is possible to apply for an extension of another three months. Before this time has passed, however, hopefully the situation will have stabilized and operations will be able to return to normal. Right now, however, it is impossible to predict in the future.

We know that there are many questions regarding redundancies and short-term permits, but we hope that we have now given you at least some answers. If you still have more questions, you can always contact us.



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