The Corona virus raises many questions and uncertainties. What consequences does the COVID-19 have for your Danish staff? At EuroDev we are dealing with European HR matters every day. Every country now has their own measures regarding the Coronavirus. We monitor the situation and have put all information together per country. If you employ people in Denmark, the information below might help you in managing your Danish staff.
*The information in the blog has the purpose to help the reader with gaining more knowledge and insights on the measures taken by the government. Please keep in mind that we have outlined basic rules. There might be specific terms, rules and regulations to each measure. As a result, EuroDev cannot guarantee any reimbursements or liabilities. For more detailed information, please contact our experts.
Most recent update: 30 March 2020
As of April 16, there are 6,879 confirmed corona cases in Denmark.
On March 11th 2020, the Prime Minister announced that all unnecessary activity in places where many people are gathered is to be shut down. This means that all public employees in non-critical functions are sent home and that schools, day-care institutions and indoor public cultural institutions are closed.
Update 15 April: Daycare centres and primary schools to reopen 15 April, Restaurants, cafes closed and gatherings of more than 10 people banned until 10 May, larger gatherings until August. GDP is predicted to fall by 6.5% in 2020.
The situation in Denmark
The first coronavirus case in Denmark was on 27 February 2020. As of 30 March 2020, there have been 2,815 confirmed cases and 77 deaths. Comparing to the many other European countries, this is still a relatively low number. Experts expect that the COVID-19 virus will peak in late April in Denmark.
On March 14 2020, Denmark closed its borders to everyone except for Danes, Danish residents and green card holders until April 14. Medical supplies, food and other essential imports will still be allowed to enter Denmark. Other public measures, which were set Friday 13 March 2020 for at least two weeks, include schools and cultural institutions closing, public servants in non-crucial functions being sent home, and gatherings of more than 100 are prohibited.
Measures for businessesThe government proposes two temporary compensation schemes:
- Compensation for corporate fixed expenses. The tripartite wage compensation agreement provided increased security for employees' jobs, and the companies received substantial support for their labor costs. The government also proposes to cover some of the fixed costs that companies no longer have earnings to cover.
- Compensation scheme for self-employed persons. The self-employed are not directly covered by the tripartite wage compensation agreement, although they may also be challenged on their livelihoods. The government will therefore ensure compensation to the self-employed, who experience large declines in their turnover.
To help financially distressed businesses and lay-offs, a wage compensation scheme has been introduced aimed at minimizing the number of future redundancies due to the Corona crisis.
Companies that are financially hit by the Corona crisis and, as a result, face the need to lay off more than 30% of employees or more than 50 employees have the opportunity to apply for state compensation.
The salary compensation is 75% of the wage expense for a monthly employee (however max. DKK 23,000 per month) and 90% of the salary cost for an hourly employee (however max. 26,000 per month).
As a condition for salary compensation:
- the redundant employees must be sent home with full pay and they may not work during the period
- the company must not dismiss employees due to financial reasons during the period in which the company receives salary compensation
- the company must not use other opportunities to repatriate employees without pay
- the repatriated employees must use vacation days and / or offsets for a total of 5 days during the repatriation period - these days the company does not receive salary compensation the
- company can receive a maximum salary compensation for 3 months, in the period March 9 to June 9
- the affected employee must have been employed before 9 March
The financially distressed company must state and justify the period in which they expect a shortage of work, and must subsequently document with the assistance of the auditor that the employees have been repatriated during the period in which salary compensation was received.
For more specific details on these measures and what it means for your staff in Denmark, we recommend reaching out to Monique Ramondt, VP of HR Outsourcing.
Measures for employeesAll private employers are urged to ensure that as many people as possible work from home or take leave, in compliance with contractual obligations, such as exports and deliveries. Furthermore, it is urged that face-to-face meetings are held only if absolutely necessary.
In addition to this information, you might have questions specific to your case and company. If you are looking for answers, we are happy to help. Schedule a 15-minute call with Monique Ramondt, VP of HR Outsourcing via the image below:
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