If your employment is terminated
If you are aged 40-64, you are eligible for severance pay insurance (AGB). You can receive compensation under this insurance if you are given notice due to a shortage of work. In some cases this will also apply if you are given notice due to illness, or when you leave fixed-term employment.
How do I know whether I have insurance?
As a wage-earner, you have insurance for a shortage of work if you work for a private undertaking.
When are you eligible for insurance compensation?
You can apply for compensation if you are given notice due to a shortage of work while in permanent employment or fixed-term employment, or you are given notice due to illness. To be eligible for compensation, the following conditions must be met:
you must be aged at least 40
you must have been employed for at least 50 months in the last five years.
What happens once you have submitted a claim?
A case officer will review the claim. If we require more information, we will get in touch with you.
When we are ready, we will notify you of whether you are eligible for compensation, and how much. You will be notified of the decision in a letter sent to you.
Submit a claim
You and your employer can submit a claim together using a form that can be filled in online. Print out the form and send it to Afa Försäkring, 106 27 Stockholm.
The claim form is in Swedish.
Frequently asked questions
When should I submit my application for termination due to lack of work?
You can submit your application when your employment ends. You can also submit it afterwards but remember to send it in no later than two years after you have ended your employment.
What applies if I have previously received compensation from the severance insurance?
You can receive full compensation only once within a five-year period. If you received reduced compensation less than five years ago, you may be entitled to additional compensation if you are laid off again due to a shortage of work.
Do I need to submit any additional documents besides the application itself?
If you have been employed for less than 50 months (4 years and 2 months) at your most recent workplace, you must include certificates from previous employments. We need to confirm that you have been employed for at least 50 months within the past five years at workplaces covered by the Severance Compensation Insurance (AGB).
Does the compensation affect my unemployment benefits?
The severance compensation does not reduce your unemployment benefits from the unemployment insurance fund (a‑kassa). When you submit your application to the unemployment fund, you do not need to report the compensation you receive from us.
Do I have to pay tax on the compensation from severance insurance?
Yes. We deduct 30 percent tax and report the compensation to the Swedish Tax Agency (Skatteverket).
What if I am allowed to remain with my employer, but with reduced working hours?
You may be entitled to partial compensation from the Severance Compensation Insurance (AGB). Therefore, you should submit an application.
Will I lose my compensation if I get a new job?
No, you do not need to be unemployed to be entitled to compensation from the Severance Compensation Insurance (AGB).
Exceptions:
• If you are offered continued employment within the same company or corporate group within three months.
• If the company has been transferred to a new owner and you are offered employment by the new owner.
• If you were granted full sickness compensation by the Swedish Social Insurance Agency (Försäkringskassan) before your employment ended.
Do I need to submit a claim to the insurance myself?
Yes. You are responsible for ensuring that the claim is submitted to us. You and your employer must complete the claim form together. The claim must be submitted within two years from your last day of employment.