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 – right to extended period of sickness benefits for employees at special risk from Covid-19
Political agreement has been reached on extension of the period of sickness benefits for employees who are either at higher risk of Covid-19 infection or are relatives of a person in the higher risk group.
Coronavirus – application for funding relating to extension of the wage compensation scheme and bill on notice of holiday in the extended compensation period enacted
The Ministry of Industry, Business and Financial Affairs has submitted an application for funding relating to extension of the wage compensation scheme from 9 July until 29 August 2020 and the Government has introduced a bill to amend the rules on notice of and changes to holiday during this period.
Coronavirus – tripartite agreement on extension and wind-down of the wage compensation scheme as well as new executive order on the scheme
The Government and the social partners have made a tripartite agreement on extension and wind-down of the wage compensation scheme and the Ministry of Industry, Business and Financial Affairs has issued a new executive order on this scheme. In addition, the guidelines on the application process have been updated and the procedure for applying for extension of the compensation period has opened.