Nav: Adverse consequences for employees on extended layoff

NAV office, where unemployed and job seekers goes for support.NAV. Photo: Norway Today Media

When Labour and Social Affairs Minister Anniken Hauglie extended the layoff period from 30 to 52 weeks last year, the employees are the losers according to a new report.

After the layoff period was extended, there are many more people who are unemployed for a longer period of time. This does not lead to other employment and many are not working during the entire layoff period before seeking new jobs, even if they have been terminated, writes VG.

On Wednesday Nav published a report on how the changes in layoff policies have influenced those who are laid off.

-The laid off person is paid less during this period and are losing wages. If a person is laid off over time this can lead to major financial loss, they will have a gap in their CV and it may be harder to get a job again, says Senior Adviser Johannes Sørbø from Nav.

He has been creating a report which concludes that changes in the layoff period must be done with caution.

Hauglie says there is room for improvement in the current system, and she is open to tightening it again.

– I think the report is interesting because the whole purpose of the changes were so that companies experiencing a decline could retain the expertise in uncertain times. However, there are a few dilemmas here: The longer the layoff period, the longer people are on leave, she said.


Source: NTB scanpix / Norway Today