Information is continuing to emerge on COVID-19 and the resulting legislative changes being instituted in Denmark. We have compiled a list of important updates for Danish employers to be aware of. Our teams are closely monitoring the situation and will continue to provide the latest updates to keep you informed.
COVID-19 Updates - Denmark
Last Updated – March 30, 2020
Employers who forgo employee dismissals that would have occurred a result of COVID-19, will receive substantial wage reimbursements. The Danish government has agreed to fund 75% of salaries for salaried employees and 90% of the wages for the non-salaried employees. A maximum payment of 30,000 DKK per month has been set. This temporary compensation arrangement will apply from March 9 to June 9, 2020.
Employers will receive sickness benefit reimbursement for wages and sick benefits they pay to employees affected by COVID-19. These reimbursements will begin on the first day of employee absence.
Employers are able to temporarily reduce work hours of employees in order to avoid dismissals. Employees may be entitled to supplementary unemployment benefits during the period of the work-tie reduction.
Small and Medium Sized Businesses
Employers of small and medium sized businesses have access to considerable support.
- Wage compensation
- Compensation for fixed expenses
- Government-guaranteed loans
- Deferred taxes and VAT
- Sick pay reimbursements
- Compensation for cancelled contracts