The Danish Government has enacted the Bill on wage compensation for private-sector employers. In connection with the enactment, various issues and questions have been addressed.
The Government recently introduced a Bill on wage compensation reflecting the agreement between the Government and the social partners regarding wage compensation for businesses which, as a consequence of the current economic situation, are facing dismissals. Our commentary on the Bill can be read here.
Two issues, which both arose during the Bill’s passage through the Danish Parliament, are particularly worth noting:
In addition to the above, a number of questions have been raised and answered in the process, and this has helped clarify various aspects of the wage compensation scheme. For example, even though the employees’ duty to work is suspended during the period of being sent home this period must still be included when calculating their period of continuous employment, and the employees will be entitled to terminate the employment relationship also in a situation where they have been sent home – and, in such case, the employees will still take part in the scheme.
Further, it has been specified that during the compensation period the employer may require the employees to resume work subject to one day’s notice and the employees will resume the duties and responsibilities applicable at the time of being sent home.
Finally, it should be noted that some uncertainty as to the scope of the wage compensation scheme still exists, and we therefore encourage employers to administer the scheme in such a way so as to ensure that they do not lose their entitlement to receive compensation under the scheme.
The content of the above is not, and should not be a substitute for legal advice.
Coronavirus – bill on entitlement to sickness benefits for employees at higher risk enacted
The Parliament recently adopted a bill to amend the Sickness Benefits Act allowing employees who are at higher risk in case of infection with COVID-19 and employees with a relative in the higher risk group to receive sickness benefits. Similarly, the bill allows employers paying salary during such absence to receive sickness benefit reimbursement from the first day of absence.
Coronavirus – political agreements on expansion and extension of economic stimulus packages and new measures
The Danish Government and Parliament recently made a series of political agreements to expand and extend the current economic stimulus packages, including the compensation schemes regarding wages and fixed costs, and to implement various new measures.
Coronavirus – increased maximum compensation under the wage compensation scheme
The Danish Government and the social partners have agreed to strengthen the wage compensation scheme for private-sector employers by increasing the maximum compensation amount under the scheme to DKK 30,000 for salaried employees as well as non-salaried employees.
Coronavirus – possibility of compensation for fixed costs
The Government and the parties in the Parliament have agreed a number of measures aimed at protecting the Danish economy in the current extraordinary situation. Such measures e.g. provide businesses affected by the economic impact of coronavirus a right to receive compensation for some fixed costs.