Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 35
Denmark
2
3
Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
Insolvency
•
The Danish government has introduced a temporary wage compensation scheme for
employees at risk of being laid-off. The temporary compensation scheme will apply
from 9 March 2020 to 8 July 2020.
•
The compensation scheme applies to all private Danish companies regardless of
size, however, it is a requirement that the company is materially adversely affected
financially by COVID-19 and are facing having to lay-off at least 30 per cent of its
employees or more than 50 employees. If this is the case, the company can apply for
state salary compensation whereby the Danish state will compensate 75 per cent of
the salaries of the employees concerned, but a maximum of DKK 30,000 per employee
per month. For hourly wage earners, the state wage compensation amounts to 90 per
cent of the salaries of the employees concerned, but a maximum of DKK 30,000 per
employee per month.
•
It is a condition for receiving compensation under this scheme that the employees
are sent home with full salary and that they do not work during the period for which
compensation is received. Furthermore, as a starting point, employees are obliged to
take holidays and/or take time off in lieu of overtime amounting to a total of five days in
connection with the compensation period.
•
Companies receiving compensation under this scheme undertake not to layoff employees due to financial reasons during the period in which they receive
the compensation. If employees are laid-off during the compensation period,
compensation of wages will cease as per the date of the dismissals.
•
The Danish government has announced that they will start negotiations with the Danish
Employers’ Confederation and the Danish Trade Union Confederation on an extension
of the wage compensation scheme; however, such extension is not yet adopted.
•
In addition to the compensation scheme, the Danish government has adopted
amendments to the Danish Act on Active Social Policy, the Danish Act on
Unemployment Insurance and the Danish Act on Sickness Benefit due to COVID-19.
Pursuant to the amendments, certain periods are extended for the benefit of the
persons covered by the acts, i.e. the period under which the persons covered by the
Danish Act on Sickness Benefit are entitled to sickness benefits.
•
Furthermore, the Danish government has introduced a possibility of extending
temporary employment due to COVID-19.
•
For additional information about the temporary wage compensation scheme, see here.
•
The Danish government has not introduced any changes to insolvency legislation.
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
35