Burger boss frustrated - loses millions - NRK Norway - Overview of news from various parts of the country

Tarje Haakstad, general manager of Døgnville, looks around the airy and modern premises of the burger chain opposite the Opera in Oslo. Finally, customers are back after two tough corona years.

During the winter coronation, Døgnvill hired all of its employees because the government promised to receive a substantial portion of the wage cost through the wage subsidy program.

But there was only one problem: the scheme was not suitable for companies that pay outstanding wages – As Døgnvill does.

– We expect this and keep people employed because of the pay support scheme. But in the end we have the bulk of the bill here, Hoxdot tells the NRK.

– If we know that this is the practice in this way, we can go the other way. We could have taken a vacation or been laid off and done this in other ways, which made December, January and February more beautiful than it is now.

– How much did you lose?

– I did not dare to think about it. I do not know, but it is clear that there are millions.

Burger Chain is currently celebrating its tenth anniversary and has five restaurants across the country. Døgnvill has about 150 employees and a revenue of about NOK 130 million.

Asks the role to sort it out

After pressure from parties in working life, the last scheme of wage support came into effect before Christmas.

The key feature of the scheme is that companies can lay off employees and the government can compensate a fixed portion of their salaries. As a result, coronary institutions do not have to lay off employees.

But many companies have now approached the NHO and explained that they are coming out of the scheme – because many of them are paying outstanding wages.

In a letter to Finance Minister Drigway Slogsvolt (SP), NHO Raiselive and NHO Service OK Handel wrote that “it should be possible to provide wage support when proven by prosecutors that the company is eligible for support.”

You can read more about how the rules are explained:

As a result, many tourism companies are losing pay support

The simple explanation for why they fall out even though the requirement in the law has been met is that the tax administration has condensed what they believe is the right way to document whether that requirement is being met, i.e. the same month as the so-called A-notification. This means that they have set aside many people in the accommodation and catering industry, who pay an employee a salary due to the different number of shifts per month.

The A-Notice is a monthly notice to the Nav, Statistics Norway and Tax Administration from the employer about the employee’s income, working conditions and termination tax, as well as the employer’s contribution and financial tax for the company.

The tax administration portal issues notices against A-melting. It acts as an agency control and makes it easy to double check numbers. Companies that approached the NHO did not submit an A-report in January – so the tax administration hopes to support NOK 0.

(Source: NHO)

– We remind you that even when companies choose to use the payroll support scheme they incur significant costs and travel companies are in a tight cash flow situation after the epidemic.

– This money is expected to come, it is said.

Kristin Krohn Devold, head of NHO Tourism, said companies that hired their employees during the December, January and February closures were at risk of not receiving the promised pay assistance.

– The reason is that he tells the NRK that the Ministry of Finance has chosen a method of calculation that does not fit the practice of paying tourism salaries.

– This means that they are, frankly, smarter, and the company has incurred more costs than they can afford. At worst, it means that it threatens the overall economy of the company. This will vary, but individual companies that are pessimistic about this are much clearer in their case.

Crone DeWalt fears the visa will end, and companies that actually laid off all of their employees are better off, not really companies that tried to keep employees on the job.

The Ministry of Finance replied in an email to the NRK that it had received the letter from the NHO, but would not comment on the matter until it responded to the letter.

The Auditors’ Association thinks the same Practice requires change – and has expressed this in a letter written by Vedum.

– The Association of Auditors hopes that employers who pay outstanding salaries for all periods except December will also receive salary support for January, the association writes on its website.

The association believes this is contrary to the purpose of the current practice plan.

– The prerequisite when the wage support scheme was launched was that those who did not lay off employees despite the drastic reduction in income should be compensated for wage expenses for the months of December, January and February.