Information about benefits fraud by companies

1. 04, 2020

Efling has received information that staff, who are working on the partial-work scheme of Vinnumálastofnun, are still being made to work full time. Companies have thereby shifted their wage costs onto the state but still benefit by the labour of their workers.This is gross abuse of public money, and it is in direct contravention to the aims of the partial-work programme.Partial benefits are a tool offered by the authorities in the ongoing epidemic. Companies that have reduced workloads in the next few weeks can use it to keep workers on their payroll, but at a reduced ratio, while the unemployment insurance covers part of the remaining pay. This is not meant to be a subsidy of wage costs if workers still have jobs to do at the company, bringing it income.“Some employers clearly aim to use the tragedy that is this epidemic to nationalize their costs but keep their hands on the profits,” says Sólveig Anna Jónsdóttir, head of Efling. “This is disrespectful toward the unemployment insurance, and cold-hearted greed in times of danger.”“Poor people have often been assailed for alleged benefits fraud. Now we see wealthy companies, many of which have paid out millions and billions in profits, using the emergency facilities of the state. The authorities must prevent fraud immediately,” said Sólveig.Efling will keep a record of confirmed benefits fraud and report it to the relevant authorities. If you have information about such cases, send it to efling@efling.is.