If a company is not able to maintain ordinary operations and staffing due to a temporary situation, a last resort can be to initiate temporary redundancy. A temporary redundancy orders the employee not to come to work, while the employer is relieved of its obligation to pay a salary. Redundancy can be partial (i.e. 50% or 20%) or full time. Please note that the employment relationship persists.
The employee should be made aware of the current situation in an information or discussion meeting. After this meeting the employee is entitled to a notice informing of the company’s reasons, the percentage of the redundancy and preferably the duration of the lay-off.
The notice should also include what date the redundancy enters into effect. As a main rule, the lay-off must be notified with 14 days' prior notice. However, in case of termination due to unforeseen accidents, the notice period may be 2 days.
Wages are paid in the notice period of 2-14 days, and in the employer-financed period according to the Act on duty of pay during temporary redundancies. Please check how long the employer period is when using the notice of temporary redundancy.
After the end of the employer-financed period, the employee can apply for unemployment benefits from NAV. The notice serves as proof for NAV in relation to the temporary redundancy.
This Lexolve template outlines all requirements that must be in place in order to be able to issue a notice such as this, and will take you through it step by step.