Government measures in key jurisdictions 3rd edition final - Flipbook - Page 43
Denmark
Employment
•
What financial
support is the government
providing to businesses•
and to individuals on
employment issues?
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 29 August 2020 as it has been extended twice.
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 lay-off
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.
•
In addition, the Danish government has on 20 May 2020 adopted another amendment to the
Danish Act on Sickness Benefit, which entitles employees who themselves are, or who has
relatives that are, significantly at risk of getting infected with COVID-19, to remain home from
work and receive sickness benefit up until 31 August 2020. In order to receive sickness
benefits, the employee must fulfil certain criteria in relation to health, and the workplace
must be incapable of arranging the workspace to accommodate the needs of the employee.
The employer is from the first day of the employee’s absence entitled to get a refund of the
sickness benefit.
•
Furthermore, the Danish government has introduced a possibility of extending
temporary employment due to Covid-19.
•
For self-employed and artists specifically, whose business is strongly affected due to the
ban on large gatherings, the Danish government has established a separate
compensation scheme. The compensation can be applied for in the period of 1 May to
31 July or in the period of 1 June to 31 August.
•
For additional information about the temporary wage compensation scheme, see here.
Government measures in key jurisdictions
43