Career adjustment for redundant employees

Published 27 September 2017

For salaried employees there are collective agreements regarding career readjustment (redeployment) and severance pay.

Through these career readjustment insurances, resources can be supplied to employees given notice of termination due to shortage of work. The purpose is to help the redundant employee to find a new employment. Activities could include shorter educations or other training to facilitate the career readjustment or transition.

For the employer the insurance can make it easier to reach agreements regarding the order of priority, which determines which employees to give notice of termination (turordningsöverenskommelse).

The basis for the redeployment schemes are collective bargaining agreements. The employer pays an insurance fee and the employees' organisations will act with the employer to evaluate the company's staffing requirements and needs. Where such needs can not be fulfilled by the application of the statutory order of priority, an agreement regarding the order of priority shall be made.

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