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Sweden: Support for employers offering short-term work assignments (COVID-19)

Sweden: Support for employers offering short-term work

The government on 14 May 2020 presented a new bill that proposes measures in response to the negative effects of the coronavirus (COVID-19) pandemic.


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The bill contains a number of proposals including measures to address rules on short-term work.

An opportunity is proposed for employers to reduce their employees' working hours by 80% and that the Swedish tax agency would be one authority to make site visits with respect to employers that receive support for short-term workers.

The government decided not to introduce any explicit rules regarding the payment of dividends and other payments by employers that are receiving support because this is already addressed in existing rules (since an employer qualifying for support would already be experiencing financial difficulties). What has been added is the concept of value transfers and that even these can be used as a basis for assessing serious financial difficulties.

KPMG observation

Particular notice is taken of the government’s position that it does not need to clarify "share dividends and other similar payments.” What could be included are different types of value transfers, but the question remains whether other types of payments can limit employers' ability to receive support.

Read a May 2020 report (Swedish) prepared by the KPMG member firm in Sweden

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