What does the bankruptcy mean for Northvolt employees with work permits?
Update Explained
Northvolt, a large company in Sweden with around 5,000 employees, including many third-country nationals with work permits, has declared bankruptcy. Usually, when a company goes bankrupt, its employees keep their jobs until they are formally dismissed and their notice period ends. For workers with residence permits in Sweden that are dependent on their employment, they typically have three months after the notice period ends to find a new job before their work permits risk revocation. Northvolt has roughly 1,650 granted work permits where the company is listed as the employer, but the Swedish Migration Agency is not sure how many permit holders still work there due to job changes and dismissals not immediately affecting permit status. Following previous layoffs at Northvolt, some workers left Sweden while others have applied for or been granted new residence permits. Those with ongoing permit applications related to Northvolt will have their cases reviewed once the employment status is clearer, noting the involvement of a bankruptcy trustee now managing the company’s assets.
What changed
Bankruptcy of Northvolt impacting work permits and employment status of current and former employees.
Why it matters
Employees with residence permits linked to Northvolt have limited time to find new jobs once their notice period ends, or they risk losing their permits.
Who is affected
- Northvolt employees with work permits
- Third-country nationals employed by Northvolt in Sweden
Key details
- Northvolt's bankruptcy affects 1,650 work permits linked to the company.
- Employees usually have three months post-dismissal notice to find new employment or risk permit revocation.
Important notes
The outcome of ongoing permit applications and future actions depend on the bankruptcy proceedings and the bankruptcy trustee's management.