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Wage guarantee

A wage guarantee is a form of protection for an employee if the employer enters into bankruptcy or restructuring and the employee does not receive their salary.

The wage guarantee means that an employee can receive compensation for the salary or wage that the employer owes them. The wage guarantee applies when the employer is declared bankrupt or enters into restructuring. The administrators for bankruptcy or restructuring, appointed by the district court, will determine whether the employee is entitled to a wage guarantee and how much money they should receive. 

The wage guarantee ensures that the employee receives the severance pay for the severance period when the employment ends.

If someone is entitled to a wage guarantee, the County Administrative Board (Länsstyrelsen) will pay the salary.

Wage guarantee at the County Administrative Board

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