COVID-19 - Temporary pay compensation for employees

Temporary pay compensation for employees in the private labor market

Questions and Answers on Temporary Pay Compensation Plan for employees in risk of being dismissed.

Temporary pay compensation is provided to companies for the number of employees the company expects to have to send home rather than dismiss as a result of coronavirus / covid-19.

The plan applies to private companies that are exceptionally severely financially affected by coronavirus / covid-19 and therefore face notice of dismissals for a minimum of 30% of staff or more than 50 employees.

• The compensation plan will apply from March 9th to June 9th 2020.

• Salary compensation will be applied digitally and everyone who meets the plan’s criteria will be compensated.

• Applications will not be processed on a first-come, first-served basis.

• Applications are expected to be opened in the middle of week 13 - follow here on the Business Guide (Virksomhedsguiden) for more information on this.

• Applications are not received before the plan is opened.

Questions and answers

• How much should employees receive during the period?

The company must continue to pay full wages to employees during the compensation period, even though they may be financially hit by coronavirus / covid-19.

• How much can my company receive in compensation?

  • For permanent employees: The salary compensation constitutes 75% of the total salary expenses for the employees concerned, however a maximum of DKK 23,000 per covered full-time employee per month.
  • For hourly paid workers: The salary compensation amounts to 90%, but a maximum of DKK 26,000 per month per employee.

The employee does not have to be a full-time employee to receive compensation.

• Am I covered by the plan if I have only one employee?

For example, 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 plan.

• Does business form or industry have any significance?

No, all companies that otherwise meet the criteria can apply for compensation regardless of the type of company and industry. This also applies to associations, foundations and self-governing institutions if they receive less than half of the institutions' ordinary operating expenses in government grants.

• Does the plan also apply to part-time employees?

Yes. Wage compensation is calculated as 75% of the total salary expenses of the employees concerned. If you have part-time employees, their salary will be included in the overall calculations.

• Can the employee work during the compensation period?

The employees who are at risk of losing their jobs are not allowed to work, but are sent home during the compensation period. At the same time, it will be a prerequisite for salary compensation that the company does not, during the salary compensating period, dismiss employees as a result of financial reasons.

• What documentation should I provide when applying?

When applying, specify the following in the application:

  1. Percentage of employees to be sent home from work (at least 30% or at least 50 employees).
  2. CPR number, salary and type of employment (is employee full-time or part-time) per employee.
  3. Period for which compensation is sought, as well as justification, e.g. lack of work.
  4. A solemn declaration by management that the information provided is correct.

You will then receive compensation as soon as possible.

• What documentation should I have ready when the coronavirus / covid-19 crisis ends?

On the other side of the coronavirus / covid-19 crisis, documentation must be provided that the plan was used.

This means that, when the compensation period has ended, the company must document that it has sent home the affected employees during the specified period. Employees must have been employed before March 9th 2020. If you have a professional representative, the documentation must include a confirmation from the representative that the employees have been returned home without work.

The documentation must be provided with the assistance of auditors.

• Can I get compensation for employees who are not members of a trade union?

Yes, you may receive compensation for employees who are not organized in a trade union.

If the unorganized employees still work during the period, the relevant trade union can object.

This text above is a translation in English of the information published on this website:

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