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Shrt-time work

Country of implementation
Sweden
General short description of the innovation
Activation of a Swedish system for short-time work should only be done in the context of a deep economic crisis. The system should apply generally to the private sector in Sweden and not only for one industry. / / The approval of the state and employers' and workers' organizations at the federal level is required for short-time work can be used in one area. Criteria that must be met for the system to be started is that the economic crisis is characterized by a deep drop in demand (ie it is not a structural crisis) and is being short-sighted. The system is regulated by the law of short-time work. Twelve months is the maximum time that the system can be used for a single union agreement at an individual company / worksite. / / Short-term replacement compensates to some extent the lower salary. The employers pay short-term compensation directly to the employee (no employer fees). The State compensates to some extent the short-term benefit. / / Short-time work reduces unemployment while the costs of unemployment insurance can be limited. This means that short-time work can be justified even though it involves governmental expenses. Short-time work should be combined with training so that employees and companies can maintain and develop their skills in the context of a crisis. /
Target group
Older Workers
Policy Field
  • employment
  • wage
Type of Policy
  • social partnership
Duration of the policy
A limitation of the period the short-time work can be used is an important tool. Most of the agreements signed during the financial crisis were held within the time period from March 2009 to March 2010. By limiting the period in which the system is active, the companies are forced to decide whether bridging action to a long term solution or if notification of termination is a better option.
Scope of innovation
  • Scope: temporary
  • Number of intended beneficiaries: depends
  • Spatial coverage: local
Nature of the innovation-short-term perspective
short - term
Type of ideal-typical strategy for the innovation
  • others
Type of innovation
  • new form of partnership or cooperation
  • new form of policy-making
New outputs
  • regulations of the labour market
  • wages
  • working time
Clarification of intended mechanisms, outputs and outcomes (optional)
Avoid unemployment under shorter crisis
Intended target group
It is up to the local partners to decide which individuals or groups are subject to short-time work. Decisions on which people, organizational units, shift or similar to be covered, are made locally. It should also be the local partners that specify whether the agreement should include only full-time or even part-time employees as well as if only permanent workers or even temporary employees shall be covered.
Actors involved in policy-making/implementation and/or evaluation
  • central state
  • employees (organised or individual)
  • employers (organised or individual)
Intended output
  • working time
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