Government measures in key jurisdictions 5th edition - Flipbook - Page 43
Denmark
Employment
•
As many Covid-19 related restrictions have been reintroduced during the autumn and
winter of 2020, the Danish government has reintroduced various wage compensation
schemes. Currently the following four wage compensation schemes are available:
• All companies can apply for wage compensation for the period from 9 December
2020 to 7 March 2021, regardless whether the company is affected by the
restrictions.
• Companies that are prohibited from opening can apply for wage compensation for
the period from 9 December 2020 to 28 February 2021.
• Companies that have been prohibited from opening since 6 November 2020 to 28
February 2021 can apply for wage compensation for this period; this mainly applies
for nightclubs, music venues etc.
• Companies that were affected by the specific restrictions in Northern Jutland in
the period 6 November 2020 to 26 November 2020 can apply for wage
compensation for this period.
•
The compensation scheme applies to all private Danish companies regardless of size,
however, it is a requirement that the company is 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.
•
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.
•
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 Covid19. 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 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. The Danish
government firstly agreed to prolong the amendment until 31 December 2020, but
has now agreed to prolong the amendment until 31 March 2021. 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.
•
Parents whose children are sent home from school or day-care centres due to
being positive of Covid-19 or due to being a close contract to someone who is
tested positive for Covid-19, can receive 10 days of maternity allowance, if the
parents have challenges in staying home from work. The option is available in the
period from 1 January 2021 to 31 March 2021.
What financial
support is the
government
providing to
businesses and to
individuals on
employment
issues?
Government measures in key jurisdictions
43
