The government will extend the layoff period until October – E24

The government is now taking new steps to help the hundreds of thousands of Norwegians laid off during the crown crisis.

In the revised national budget, the government proposes to extend unemployment and layoff benefits until October. This is confirmed by the Minister for Labor and Social Affairs, Torbjørn Røe Isaksen, in a statement to E24.

The social partners, with the NHO and LO at the forefront, have demanded such an extension of the layoff rules.

Previously, the government had a breakthrough in Storting for an extension in June.

– This means that workers will still be able to receive unemployment benefits during termination, even though the original maximum period of 26 weeks has expired. Therefore, companies will not receive the invoice for the layoff period until November. We do this to help prevent layoffs, says Røe Isaksen in the statement.

It can usually be fired for up to 26 weeks. The general scheme will not be extended, so those who are laid off in the future can still be there for a maximum of 26 weeks.

– The crisis in Corona has led many to be fired and, without the extension we have now, many of them would have ended. We now hope that the community will slowly return to a normal level and that this expansion will allow many people to return to work during the summer and fall, Parat leader Unn Kristin Olsen said in a statement.

The director of the Academy, Kari Sollien, also supports the government’s proposal, but at the same time she is concerned about the need for activity in future layoffs:

– The danger with too long a layoff period is that people are locked in a situation outside the labor market. Most importantly now that the government is looking for alternatives to layoffs. We have proposed a wage subsidy scheme, where companies receive a wage cost subsidy for a temporary period to keep people on the job, Sollien said in a statement.

Will prevent layoffs

By adopting this approach, the government will avoid using the layoff period throughout the summer and early fall. At the end of the layoff period, companies must either assume payroll responsibilities or fire the employee.

Since the crown crisis in the economy can last a long time, the government will prevent this from ending.

– The government is aware that extending the layoff period can also have unfortunate consequences because companies keep employees fired even in cases where it is no longer realistic to get everyone back to work, says Minister of Labor and Affairs Social, Torbjørn Røe Isaksen, in the statement and continues:

– We are continually evaluating which measures can stimulate activity rather than passivity, and we will come back to this in the Phase 3 proposal for measures in late May.

Read more about the revised budget: