Background

• On Sunday 15 March 2020 the Danish Government and the two sides of industry announced a three-partite agreement, introduced to support the employers and employees that are at risk of dismissals due to COVID-19
• The proposal was updated on 30 March 2020 in favor of employers: the previous salary limit of DKK 23,000 and 26,000 have now been raised to DKK 30,000. The other aspects were left untouched

Picture source: Finansministeriet

Details

• The agreement includes that the Danish Government will grant wage compensation for the employees that likely will be laid off. The compensation from the Danish Government per employee:
  • Full-time employees: 75% of the salary, maximum of DKK 30,000
  • Hourly employees: 90% of the salary, maximum of DKK 30,000
• The company can receive compensation for a maximum period of 3 months during 9 March 2020 to 9 June 2020

Eligibility and conditions

• Employees employed at private companies that are faced with dismissing either a minimum of 30% of the employee population or more than 50 employees due to COVID-19
• The company can apply the solution in case they opt out of the existing possibilities of lay off without salary
• The company continue to pay out full salary to the employees during the period of compensation
• The employees are not allowed to work during the lay off period
• The company must not dismiss the employees due to economical reasons
• Each employee covered by the solution must spend holiday/leave or time off in lieu of overtime pay for 5 days in connection with the compensation period. In case the employee does not have 5 of such days to spend, the employee must spend 5 days of unpaid leave in the next holiday year. The salary for these days will not be compensatet

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