Wage guarantee is a protection for you when your employer goes bankrupt, or goes through a reconstruction, and you do not receive your salary.
The wage guarantee entails that you may receive a compensation for the salary, or suchlike benefits, your employer owes you. The wage guarantee applies when the employer goes bankrupt or goes through a reconstruction. The trustee, or the reconstructor, decides whether you’re entitled to a wage guarantee or not, and also decides how much money you should receive. Trustees and reconstructors are appointed by the District Court.
The wage guarantee also entails that you may receive a notice salary during your term of notice.
If you are entitled to a wage guarantee, the County Administrative Board will make the payment.
Which payroll costs may I be compensated for?
- Salary you earned three months before the company submitted their bankruptcy or reconstruction application to the district court.
- Salary for the period between your application and the district court’s decision on bankruptcy or reconstruction.
- Salary for the first month after the decision on bankruptcy or reconstruction.
- Vacation pay for this and last years’ earned vacation compensation. You can receive a wage guarantee of a maximum of five days of saved paid vacation days from last year. A full year of vacation compensation earnings usually runs between April 1st and March 31st.
- Notice salary and vacation compensation during the term of notice, as stated under the Employment Protection Act, if you are given notice to quit during bankruptcy or reconstruction. If you have been given notice to quit you must be listed as a jobseeker with Arbetsförmedlingen.
How much money can I get?
The maximum wage guarantee is four base amounts. In 2018 this is equivalent to 182 000 SEK. The base amount changes every year. You may only receive money for a maximum of eight months. Therefore, how long you receive a wage guarantee depends on how much you earn and how long your term of notice is.
When is the money paid out?
We will pay your wage guarantee when the trustee, or reconstructor, has decided on how much money you should receive. Our aim is to pay the wage guarantee within five days from getting noticed about the decision.
Notice salary and vacation compensation are often paid for several months.
Do I have to submit an application form to the County Administrative Board?
You do not have to submit any form to get the salary or vacation compensation that you earned before the decision on bankruptcy or reconstruction was made. You may get the salary you earned paid out up to one month after the decision on bankruptcy or reconstruction. Thereafter you will receive any notice salary.
To receive notice salary and vacation compensation for the term of notice, you must submit a form and a certificate that you are listed as a jobseeker with Arbetsförmedlingen. The trustee, or reconstructor, will decide on your notice salary. If you are receiving notice salary and vacation compensation we will send you the form Försäkran enligt lönegarantilagen. You fill in the form and submit it to us the 20th of each month for as long as your wage guarantee period lasts.
Common questions and answers about payment and wage guarantee.
First, the trustee, or reconstructor, must decide whether or not you are entitled to a wage guarantee. The decision is then sent to you and to the County Administrative Board. After receiving the decision, The County Administrative Board usually processes the case in 1-2 weeks before making the payment of the salary and any vacation compensation to you. However, in the case of bankruptcies or reconstructions involving many employees, it might take us longer to process your case.
The amount of the wage guarantee, which you are entitled to, will be specified on the decision sent to you by the trustee, or the reconstructor. If you have questions about the amount, or why you are receiving that specific amount, please contact the trustee, or the reconstructor. You can find their contact information on the decision.
Taxes will be deducted from the wage guarantee amount according to the Swedish Tax Agency’s regulations. Please note that the amount specified on the trustee’s, or reconstructor’s, decision is the amount before taxes.
The trustee, or reconstructor, decides whether you are entitled to a wage guarantee or not.
The trustee, or reconstructor, decides if you are entitled to a notice salary. Only the trustee, or reconstructor, will be able to answer this question.
If you have submitted the form "Försäkran enligt lönegarantilagen", and provided the correct information on the form, the County Administrative Board will make the payment within a week. Our payout period extends from the 21st to the 20th. Therefore, the first notice salary may be less than a monthly salary.
If you are receiving a notice salary, you submit the certificate from Arbetsförmedlingen with the form Försäkran enligt lönegarantilagen.
Please read the information letter you received, and fill in the form as carefully as you can. If anything is missing the County Administrative Board will contact you.