Updated 20/4-2020 from 30/3-2020

Tripartite agreement on temporary pay compensation extended by one month

The government and the social partners have agreed to extend the temporary wage compensation scheme by one month to apply until and including 8 July. The scheme allows employees to keep jobs and wages instead of risking a dismissal notice.

The wage compensation scheme 

Employee salary figur_updated-1

Denmark is facing a gradual reopening, where parts of society have taken the first steps towards a normal everyday life and more are on the way. However, there are still large sections of society that will be closed down for a longer period of time, and this has major financial consequences for the employees and companies concerned.

The tripartite agreement on temporary wage compensation help protect many Danish employees and companies, as it allows companies, who are financially pressured by the COVID-19 crisis, to receive part of their salary.

Now the government and the social partners, FH and DA, have agreed to extend the scheme until and including 8 July.

The salary compensation scheme is adjusted to this, so that the possibility of getting salary compensation for employees in flexi-jobs will be the same, whether the employee is on the old or the new flexi-job scheme.

"I am incredibly pleased that we have agreed with the parties to extend the wage compensation scheme. It makes a difference for more than 100,000 workers. We are in the process of gradually reopening the community, but we will continue to experience a pressured labour market for some time, and it is therefore important that companies can continue to receive help so that fewer employees have to be laid off. I would like to thank the parties again for their constructive approach to the extraordinary situation in which we stand, and the cooperation again shows the strength of it the Danish model."

Minister of Employment Peter Hummelgaard

"It should not affect the man on the shop floor that the corona infection has hit Denmark. Therefore, it is important that we extend the scheme. It protects thousands of employees and ensures that they do not get a dismissal notice. And it ensures that the companies get help retaining their talented staff so that they are ready to get down to work when the corona eruption is over."

Minister for Industry, Business and Financial Affairs Simon Kollerup

"I am pleased that we have agreed to extend the scheme by one month, as there is still a need to keep protecting jobs. This helps to create confidence among the employees. I am also pleased that flexible workers are secured, whether they are on the old or new scheme."

The chair of the trade union's main organization (FH), Lizette Risgaard

"I am pleased that we agree to extend the assistance to companies and employees. The wage compensation scheme has already helped almost 30,000 companies and their employees. The extension is crucial in protecting Danish companies and jobs at a time when the lockdown of the country on many fronts has also been extended. It is therefore also important that we continue the dialogue on whether there is a need to improve and adjust the scheme"

Adm. Director of the Danish Employers' Association (DA), Jacob Holbraad

The companies must reapply for an extension for the period from June 9 to July 8, 2020 at the Danish Commerce Agency.

More information

Companies and organisations can get more information on www.virksomhedsguiden.dk. 

For more on hotlines and who to contact for crisis consultancy please see here.

Source: Ministry of Industry, Business and Financial Affairs

See the whole temporary wage compensation agreement for private sector workers from March 14th here.

See the strengthened temporary wage compensation agreement for private sector workers updated on March 30th here.