Understanding Furlough/Permittering: Guide for those who have received Furlough Notice

You received a Furlough Notice. As sad as it is, the silver lining is that it is a temporary situation and you are not laid off, but remain employed by your company. However, you are relieved from your work duties (fully or partially) and your employer is relieved from the obligation of paying you (fully or partially - depending on the percentage of your furlough).   

 

If your employer is relieved from the duty of paying you, then when does it become effective and what happens to your personal economy? Let's look at it together.

 

Let's call the day when you receive your furlough notice "DAY 0". On that day you work as normal and your Employer pays you your regular salary. 

 

After that the NOTICE PERIOD startsIf you are sent on furlough, your company needs to inform you 14 days in advance. In case of "unforeseen circumstances" the notice can be as short as 2 days, but one should be careful with what is considered to be "unforeseen circumstances". During the notice period (whether it is 14 days or 2) you work as usual and your Employer pays you your usual salary.

 

After the notice period is over your furlough starts. What happens to payments then?

 

PAYMENTS DURING FURLOUGH FOR THOSE FURLOUGHED BETWEEN 20.03.2020-31.08.2020

 

DAY 1-2 OF YOUR FURLOUGH

 

You receive the normal salary from your employer. It is called "EMPLOYER PERIOD".

 

If you were furloughed between 20.03.2020 - 31.08.2020, the employer should pay you your usual salary for the first 2 days of your furlough.

 

 

DAY 3-20 OF YOUR FURLOUGH 

 

During these days you will receive the "salary compensation" from NAV. The amount is the same as your regular salary provided that it is not exceeding 6 G*. You do not have to apply for it. Your company will send the information to NAV (Norwegian Labour and Welfare Administration) directly and they will action the payment.

 

*G is a basic amount in National Insurance Scheme. It is a variable, which as of now is G=99 858 NOK per year. So the salary compensation is capped at the salary level of 599 148 NOK a year.

 

DAY 21 - UP TO 26 WEEKS 

 

During this period of time you will receive the unemployment benefits ("dagpenger" in Norwegian) from NAV. Please, apply for the unemployment benefits as soon as you have received the furlough notice.

 

Take the following steps:

 

- Register yourself as a job seeker on NAV pages. It is a necessary step to get unemployment benefits even though you are still technically employed by your current company

 

- Apply for unemployment benefits here and remember to attach your furlough notice to the application

 

- Send notification card ("meldekort" in Norwegian) every 14 days, you can see reminders to do that when you are logged in to nav.no

 

- Check that you have the correct bank account registered in NAV, so that you can receive payments

 

- If you forgot to provide any documentation to support your application, you can always forward it to NAV through this link.

 

PAYMENTS DURING FURLOUGH FOR THOSE FURLOUGHED AFTER 01.09.2020

 

The situation with payments is slightly different if you have been furloughed after 01.09.2020

 

DAY 1-10 OF YOUR FURLOUGH

 

You receive the normal salary from your employer. It is called "EMPLOYER PERIOD". 

 

If you were furloughed after 01.09.2020, the employer should pay you your usual salary for the first 10 days of your furlough. 

 

DAY 10 - 26/52 WEEKS

 

During this period of time you will receive the unemployment benefits ("dagpenger" in Norwegian) from NAV. Please, apply for the unemployment benefits as soon as you have received the furlough notice.

 

Please, note that at the moment the maximum length of furlough is 26 weeks during 18 months, but starting 01.11.2020 the maximum length of furlough can be up to 52 weeks during 18 months.

 

In order to apply for unemployment benefits, please take the following steps:

 

- Register yourself as a job seeker on NAV pages. It is a necessary step to get unemployment benefits even though you are still technically employed by your current company

 

- Apply for unemployment benefits here and remember to attach your furlough notice to the application

 

- Send notification card ("meldekort" in Norwegian) every 14 days, you can see reminders to do that when you are logged in to nav.no

 

- Check that you have the correct bank account registered in NAV, so that you can receive payments

 

- If you forgot to provide any documentation to support your application, you can always forward it to NAV through this link.

 

Any questions - please ask me here.

 

 

*This article was last updated 24.09.2020.