13 March 2020 – Phase 1 measures to avoid layoffs and bankruptcies announced

This item is sourced from the CCCSL: CSH Covid-19 Control Strategies List co-ordinated by the Complexity Science Hub Vienna, Austria. We are in the process of gathering further information and aligning taxonomies for these items.

Intervention Categories: Legal and policy; Regulatory change
Level of Jurisdiction: National

Overview: Measures to avoid unnecessary layoffs and bankruptcies in companies from the economic shock of COVID-19 announced. These are phase 1 measures; the government will continue to monitor the situation and implement other measures in the future. These phase 1 measures include: measures in the health care system to handle the acute crisis, such as securing necessary equipment and personnel. Reduction in the number of days that employers are obliged to pay salary to workers at temporary lay-offs, from 15 to 2 days. This will be a temporary measure to improve companies’ liquidity and help avoid massive lay-offs. Removal of the three waiting days between the period when employers have to provide salary to workers in temporary layoffs and the period when the workers are entitled to daily unemployment benefits. This will reduce the loss of income for workers. Change in corporate tax regulations so that companies that are lossmaking can re-allocate their loss towards previous years’ taxed surplus. Change in tax regulations so that owners of lossmaking companies can postpone payments of wealth tax. This will reduce the need for firms to provide dividends to owners to cover the wealth tax. Suspension of the tax on air passengers for flights in the period from 1 January 2020 until 31 October 2020. Suspension of payments of aviation charges until 31 June 2020. Strengthening of support for skills upgrade and in-house training for companies affected by the virus outbreak, through increased grants to the counties. Increase in allocation to municipalities that will have large excess expenses due to the virus outbreak. Ensuring that pension rights are not affected negatively for retired health personnel who return to service for the outbreak.
Full details here: https://www.regjeringen.no/en/aktuelt/the-government-acts-to-mitigate-effects-of-the-covid-19-pandemic-on-the-economy/id2693471/