Government measures in key jurisdictions 4th edition - Flipbook - Page 96
Norway
E. State Compensation Scheme
The government passed a State Compensation Scheme under which companies which
have suffered a minimum of 30% reduction in revenues due to the Covid-19 outbreak can apply
for state compensation. On 29 May 2020 the government announced that the State
Compensation Scheme was extended until 31 August 2020.
Under the State Compensation Scheme companies experiencing a minimum of 30% reduction in
revenues, can apply to the state for the state to cover a portion of the company's overhead
expenses. Businesses required to shut down by the government are eligible to get up to 90% of
their overhead expenses covered. Other businesses experiencing a minimum of 30% revenue
reduction are eligible for state compensation for up to 80% of their overhead expense. For
businesses not required to shut down by the government, a NOK 5 000 deductible was applicable
for April, but the deductible has, as of 1 July 2020, been removed for the months May, June, July
and August.
In the extended period of the State Compensation Scheme the coverage-percentage will be
reduced to 70% for June and July and 50% for August. The deadline to apply for compensation for
June, July and August is 31 October 2020.
F. Financial aid for entrepreneurs and start-ups
On the 27 March 2020, the government proposed a NOK 2.5 billion financial aid package to
entrepreneurs and start-ups, pursuant to which entrepreneurs and start-ups are eligible for
various loans, financial subsidies and investment capital.
Employment
What financial support
is the government
providing to businesses
and to individuals on
employment issues?
The employer's obligation to pay salaries after temporary layoffs was as a temporary measure
reduced from 15 days (three weeks) to two working days under the Lay-off Salary Payment Act.
Moreover, the Government paid salaries for an additional 18 days (capped at 6G, approximately
NOK 600,000) to employees laid-off. The changes were effective as of 20 March 2020.
Employers who paid their employees' salaries for more than the 2 working days required, or prepaid salaries, may apply for a refund, capped at 6G for each employee.
Refund applications must be submitted to the National Labour and Welfare Administration (Nw.
NAV) by 31 October 2020. The possibility to apply for a refund is not applicable for lay-off periods
commencing subsequent to 20 April 2020.
On 28 May 2020, the government proposed a temporary salary payment-solution for companies
who bring back their own laid-off employees in July and August. The proposal implies that the
relevant company will receive a monetary compensation for each employee it brings back to
work. A refund application portal is scheduled to be opened in October 2020.
On 29 May 2020, the Government proposed to extend the period for which the employer is
responsible to pay salary during temporary lay-offs from two to ten working days and to end the
arrangement where the Government must pay salaries for 18 days, for new lay-offs subsequent
to 1 September 2020. Furthermore, the maximal period for temporary layoffs will be extended
from 26 weeks to 52 weeks from 1 November 2020.
Government measures in key jurisdictions
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