The Danish Government has introduced the Bill on wage compensation to the private sector. Whilst the Bill does clarify a number of issues relating to the scheme, various questions concerning the scope of the scheme are still unanswered.
We have previously described the tripartite agreement concluded between the Danish Government and the social partners regarding wage compensation to businesses which, as a consequence of the current economic situation, are now facing redundancies. The article can be found here.
A few days ago, the Government introduced the Bill regarding the wage compensation scheme. The Bill reflects the tripartite agreement.
In overall terms, the elements of the wage compensation scheme are as follows:
As mentioned above, various questions concerning the wage compensation scheme are still unanswered.
Norrbom Vinding will provide further information when the Bill is enacted.
The content of the above is not, and should not be a substitute for legal advice.
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.