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Temporary lay-off and unemployment allowance

Employees that are temporarily laid off may under certain conditions be entitled to a daily unemployment allowance.

Employees that are temporarily laid off may be entitled to a daily unemployment allowance.

Employees that are temporary laid off, and members of Norwegian social security may under certain conditions be entitled to a daily unemployment allowance upon application to the Norwegian Labour and Welfare Organisation (NAV). NAV have however received over 300 000 applications for unemployment allowance so far during the COVID-19 crisis, and they do not currently seem to have the capacity to handle all the applications. 

We therefore believe that even though the employees may be entitled to unemployment benefits, it may take significant time before their applications are processed and they actually receive the benefits. Due to this situation, a new solution have recently been established which allow for unemployment allowances in advance upon application. Such advance payment will afterwards be compared with the finalized unemployment benefit application and adjusted thereafter. The purpose is to ensure that employees get their benefits fast, while NAV finishes the processing of the actual unemployment benefit applications.

In order to apply for advance payments of unemployment benefits the following applies:

The employee must have filed a normal application for unemployment benefits

  • The employee must fulfill the basic conditions for receiving unemployment benefits
  • Send a specific application for advance payments
  • Have electronic ID such as BankID, Buypass or Commfides (MinID is not sufficient)
  • Submit employment status card every 14 days

As of now, it is only possible to apply for advance payments digitally through NAV.no and the practical possibilities when it comes to receiving benefits in advance are therefore quite limited for foreign employees unless they have the proper electronic ID.

If one already have or are considering to temporary lay off employees, you should be aware that it might take a long processing time at NAV before the temporarily laid off employees  receive their benefits.

Do you have legal questions as a result of the corona virus? Call us on +47 4063 9458 for up to 15 minutes of free advice.