Government measures in key jurisdictions 5th edition - Flipbook - Page 135
Sweden
Miscellaneous
In addition to the schemes mentioned above, the Swedish Government has also
implemented certain financial support to the airline, shipping, public transport, travelling
and fishing industries and increased the limit on borrowings from the Swedish Export Credit
Corporation and extended credit guarantee limited for guarantees granted by the Swedish
Export Credit Agency.
Employment
What financial
support is the
government
providing
to businesses
and to individuals
on employment
Short-term work
Swedish companies can obtain a governmental subsidy for short-term work, meaning that the
working hours of the employees can be reduced with up to 60 per cent (however, up to 80 per
cent during May and June 2020 and January, February and March 2021), whereas the employees
retain approximately 90 per cent of their salary. The government subsidy covers 75 per cent of
the costs for this reduction.
In order to qualify for this subsidy, the following criteria must be met:
• The company should be able to demonstrate financial problems resulting from the Covid-19
pandemic;
• In the event that the company is bound by a collective agreement, the short-time work must
be agreed upon with the company’s signatory trade unions;
• In the event that the company is not bound by any collective agreement, the short-time
work must be agreed upon with 70 per cent of the employees at the relevant business
unit and the working hours should be reduced with the same level for all employees;
• The company must have made use of other available measures to reduce its costs, such
as termination of non-permanent personnel who are not regarded as critical to the
business operations (if possible); and
• The company should not be subject to a restructuring or be insolvent.
The former 24-month waiting period following a grant term has been eliminated meaning
that companies who previously have received governmental subsidy for short-term work can
re-apply in 2021.
Governmental subsidy for short-term work is not applicable if dividends are paid or
distributed two months prior to or six months after the grant period. These rules also apply to
the parent company.
Compensation for people belonging to a risk group: An individual belonging to a risk
group who has to refrain from working due to Covid-19 can apply for a temporary
compensation (up to SEK 810 per day) for the period 1 July 2020 to 30 April 2021, provided
that the individual can submit a doctor’s certificate showing that he or she belongs to a risk
group, that it is not possible to work from home, and that the situation cannot be solved in
any other manner.
Sick pay: The government assumed the company’s liability for sick pay during April, May,
June and July. For the period August 2020 to February 2021, the level of compensation is
based on an amount exceeding 0.35 to 1.07 per cent (depending on the employer’s total
salary costs) of the paid sick pay. Companies will receive reimbursement for sick pay costs
after they have filed their monthly PAYE tax return. This period may be extended until 30
April 2021.
Qualifying period for sick pay: The government temporarily compensates employees with
up to SEK 810 for the deduction from sick pay (i.e. the qualifying period) until 28 February
2021. This period may be extended until 30 April 2021.
Doctor’s certificate: The requirement to provide a doctor’s certificate from day eight in the
sick period has been modified, meaning that such certificate is now required after day 21.
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