Times are tough, haven’t we heard that a lot recently. It has been difficult to wade through the noise ourselves too. There is conflicting information, lack of coverage for available initiatives and it all seems a little convoluted. It’s the last thing we need right now as it seems the crippling weight of our livelihoods and the livelihoods of our staff mount on our shoulders.
That’s why we wanted to create a space where employers, company owners and business leaders can come to source up-to-date information, regarding how the Coronavirus pandemic affects commerce. We are firm believes of onwards and upwards, this will pass but together, we hope that the spreading of information, as opposed to germs- can give us a fighting chance.
So, we will be regularly updating this page with what’s new in our industry but until there, here is what you need to know.
Redundancy/Furlough and provisions to pay staff
“Short-time working means that employers can reduce their employees’ working hours and receive financial support from the central government to compensate for a significant part of the costs for retaining the employee.” – Tillvaxtverket
Now is not the time for pride or to keep your issues to yourself. We highly recommend taking advantage of every government initiative put in place to help tackle the coronavirus economic impact. A great place to start is the “Short Term Working Allowance”.
Employers whose employees are not working under a collective bargaining agreement must instead sign an agreement for short-time working with at least 70 per cent of the employees at the operating unit. You cover only a fraction of the wage while the government foot the bill for the rest, allowing you to retain your staff and avoid painful layoffs.
Understandably, business is slow, so, therefore, you don’t need those staff members right now, but there are provisions in place to allow temporary furlough with pay split between you and the government.
It is important however to note that you must not be in bankruptcy/insolvent or in the pre-pack or bankruptcy/insolvency process (even if it began before the outbreak, proof of profitability is required), nor subject to an obligation to prepare a Balance Sheet for liquidation purposes, nor undergoing restructuring.
Other Overheads- Payment Respites
Companies that are financially affected by coronavirus can apply for a payment respite to help weather the financial burden. This means that you postpone the payment of your tax and pay it later. There are two kinds of payment respites. This includes debited preliminary tax; the Swedish government has proposed a time-limited reduction of employer’s social security contributions and the general payroll tax.
You may also want to check with your landowner/landlord to see if deferment of rent is possible as well if you have premises or if your mortgage provider can postpone payments. Much of this is on a case by case basis at the moment but more information can be found on the FI website as well as exercising the phrase “ask and ye shall receive” time to test if the old adage works.
Rent Out Your Employees
In house here at Gigway, we had a little think about what we can do to help as a HR/Recruitment/Freelancer platform, and we have come up with a plan…
Gigway is focused on individuals, but we now open up for companies to rent out their staff as freelancers to other companies as subcontractors. So more companies can keep their staff, and fewer people go without jobs.
If you have members of staff in departments like marketing or tech, why not lend them to companies that need their help and services. It’s vital for everyone to stay busy, so allow your fantastic staff to do what they do best by lending them to other businesses temporarily.
It’s simple; here is how “Rent Out Your Employees” works:
1. Invite your employees. (Simply enter the email address of the employees you would like to refer then, You’re done.
2. They create a profile in Gigway using your company information (as opposed to them being registered as a sole proprietor or an LTD/AB)
3. We match them with gigs with companies that desperately need extra hands across all departments.
4. They perform consultant work and make you super proud; after all, they are your hard-working staff.
5. The client pays Gigway, who then pays your company. You then pay the salary to the employee, allowing them to remain completely under your employ. This means less fuss and less paperwork. (Everything is managed on our platform with just a few clicks.)
6. If you are a company experiencing growth, why not search for the best staff on our platform. Sign up and list your gigs, you gain access to our personalised service and offer someone work during difficult times. Win-win-win-win!
This is what we have for the moment; we hope this offers you a starting point to mediate through this most uncertain time. We do have some more practical advice, no doubt you have heard it before, but we want to reiterate that you should stop marketing. Keep shouting about your excellent company where possible, on social media, in emails and offering incentives to your customer base where possible. Remember that we will get past this and with every effort from you and your staff, you will see this turnaround. Ensure that you put your team interested first, keep them safe, encourage them and do all you can to protect their livelihoods. Putting yourself in your staff shoes is essential; your loyalty now will pay off in the future.
Alternatively, if you are understaffed and have been lucky enough to experience a boom in business, then you too can take advantage of our sign up discount, register with us, and discover our 2000+ professional giggers, just waiting to help you realise your company goals! We are here to get you there.
Ps. Our best advice, however, is always to read the terms and conditions. Eligibility will vary, and you must read the fine print on the government websites carefully. We will share the necessary content but always ensure you do your due diligence, and together we will get through this. Knowledge is power. . .