The government, together with the social partners, has entered into a tripartite agreement on a temporary system of salary compensation for redundant employees in the private labor market.
The pay compensation scheme applies to companies that are exceptionally strongly affected financially as a result of the corona eruption and who face having to fire at least 30 percent of its employees or more than 50 employees.
If you want to use the scheme in your business, you have to send the employees home at full pay. Employees are not allowed to work during the period in which they were sent home.

How much compensation can you get?

The scheme gives the affected companies access to state wage compensation with:
➢ 75% for monthly paid employees, but no more than DKK 23,000 per month.
➢ 90% for hourly paid employees, but a maximum of DKK 26,000 per month.
What does it cost to the employee?
As part of the agreement, the employeeswho are sent home themselves must take 5 days of vacation or leave without pay corresponding to a total of 5 days in connection with the compensation period. If the employee does not have a holiday or a vacation, he or she must take 5 days off without pay or use holiday days from the new holiday year.
The company does not receive salary compensation for the 5 days during which the employee takes a vacation or leave without pay.
What other conditions should you be aware of?
It is a condition that during the compensation period the company does not dismiss employees for financial reasons. But you may want to terminate employees for other reasons. In addition, these conditions apply:
➢ The company must also not use other schemes at the same time, for example. distribution of work or repatriation without pay, etc.
➢ Companies must document with the assistance of the auditor that the employees have been returned without working during the period.
➢ The wage compensation scheme is temporary and will apply from 9 March to 9 June 2020.

How do you apply for salary compensation?

You must apply for compensation via a form with the Danish Business Authority. It is expected that companies can start applying in mid-week 13 and that the first salary compensation can be paid the following week.
The applications will not be processed on a first come, first served basis.
What should you have ready when applying?
When you apply, you must have the following documentation ready:
➢ How many employees are sent home (at least 30% of the staff or at least 50 employees).
➢ CPR number, salary and employment rate per employee, as well as whether the employee is full-time or part-time.
➢ Period and justification for what period you expect labor shortages.
➢ Faith and laws declaration by management that the information is accurate.
What documentation should I submit when my compensation period has expired?
The company must submit documentation that the scheme was used.
➢ This means that you must document that the affected employees were sent home for the specified period.
➢ Employees must have been employed before 9 March 2020.
➢ If a professional representative is employed, the professional representative must confirm that the employees have been sent home without having to work.
➢ Documentation must be done with the assistance of an auditor.
What if you only have one employee?
If you have one employee, that corresponds to 100% of the staff, and you are therefore covered by the agreement. However, self-employed persons without employees are not covered by the scheme.

What do we do when the employee cannot have his or her child taken care of because the day care center is closed?

➢ The government has decided that schools and day-care institutions will remain closed for two weeks from March 16 until March 30, 2020.
➢ The company may enter into an agreement with the employee that she or he works at home, works offset or part-time, vacation or leave without pay.
➢ Schools and institutions will be kept open to parents who cannot find other solutions and will also be kept open to children by parents who cannot find a solution and who perform one of the critical functions of our community.