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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
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Age Limit for State Income-Based Old-Age Pension Raised
New Legislation Enacted
Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB
The Swedish Parliament approved a bill raising the age for state income-based old-age pension, from 61 to 62, effective January 1, 2020.
Proposed New Rules on Temporary Reduced Working Hours and Salary
Proposed Bill or Initiative
Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB
On March 5, 2020, the Swedish Government proposed an extension of the law on state aid for work with temporary reduced working hours and salary (RWH), to open the possibility to provide state aid to employers who suffer from serious and temporary financial difficulties, which could not be foreseen or avoided, such as the COVID-19 pandemic. On March 16, 2020, a new proposal entails the State will take a greater part, up to three-quarters, of the costs for the RWH. Employer’s costs for salaries can be reduced by half, while the employee receives more than 90 percent of his or her ordinary salary. The aim is to support employers who suffer from serious and temporary financial difficulties to retain their staff, so that they are able to quickly ramp up productivity again when the situation changes.
The Swedish State to Assume Employers’ Responsibility for Sick Pay
Proposed Bill or Initiative
Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB
The Swedish Government has proposed that the qualifying deduction (Sw. Karensavdrag) will not apply in cases where employees fall ill between March 11, 2020, to May 11, 2020. This means that employees and self-employed persons are entitled to sick pay from the first day of absence due to illness, and the State will bear the cost. It was proposed that the State also bear the cost for all sick pay during April and May 2020.
Temporary Reinforcement of Unemployment Insurance
Proposed Bill or Initiative
Author: Anna Jerndorf, Partner - Advokatfirman Törngren Magnell KB
On March 30, 2020, due to COVID-19, the Swedish Government proposed temporary reinforcement of unemployment insurance. The requirements concerning eligibility to receive money from an unemployment insurance fund will be temporarily relaxed. At the same time, it is proposed that both the highest and the lowest amounts paid out shall be raised temporarily to alleviate the economic impact on people who become unemployed. Further, it is proposed that the six initial qualifying days shall be removed and that the unemployment insurance funds shall receive funding for administration.