10.6092/issn.1561-8048/10803
In Denmark, the Corona-virus pandemic has led to a lock-down of society. Schools and shops are closed and many employees are sent home to work. The Government has adopted several measures aiming to mitigate the economic consequences for businesses, especially in respect of redundancies, both via statutory legislation and tripartite agreements. Many measures have been extended during the re-opening of society.
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Natalie Videbaek Munkholm
Italian Labour Law e-Journal
Unemployment benefits
COVID-19 and Labour Law: Denmark
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National Reports
2020-04-15
2020-04-14
2020-04-15
2020-09-15
ILLeJ
Natalie Videbaek Munkholm
2020/04/15
10.6092/issn.1561-8048/10803
Aarhus University
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Unemployment benefits
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COVID-19 and Labour Law: Denmark
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COVID-19 and Labour Law: Denmark                                               Italian Labour Law e-Journal
Mette Soested, Natalie Videbaek Munkholm                                      Special Issue 1, Vol. 13 (2020)
nvm@law.au.dk                                                   Covid-19 and Labour Law. A Global Review
mettesoested@law.au.dk                                                                      ISSN 1561-8048
                                                             https://doi.org/10.6092/issn.1561-8048/10803




                 COVID-19 and Labour Law: Denmark
                Mette Soested, Natalie Videbaek Munkholm*


                                               Abstract


     In Denmark, the Corona-virus pandemic has led to a lock-down of society. Schools and shops
     are closed and many employees are sent home to work. The Government has adopted several
     measures aiming to mitigate the economic consequences for businesses, especially in respect of
     redundancies, both via statutory legislation and tripartite agreements.


     Keywords: Covid-19; Labour law; Tripartite agreements; State funded compensations; Digital
     work; Online re-training; Re-allocation of workers; Unemployment benefits.




 1. General Framework.

    Albeit not explicitly defined as a national health emergency, the Danish government has
 adopted numerous restrictive measures in order to flatten the curve of the coronavirus
 pandemic.
    The society has been locked down since 10 March, which includes closing of schools,
 public childcare services, universities, cultural institutions, restaurants, cafes, shopping malls,
 hairdressers, and the borders. Supermarkets and pharmacies remain open. Public gatherings
 of more than 10 people are prohibited. All schools and educations continue on-line, no
 classes are cancelled. All non-essential public employees are sent home to work. Private
 employers are strongly encouraged to send their employees home to work, or to let them
 take time off in lieu or take outstanding holidays. Society has to a very large degree adhered
 to all health recommendations.
    The measures taken resulted in the spread of Covid-19 virus being very slow, and the
 numbers of critically ill or dead persons due to Covid-19 are developing very slowly – the
 curve is very flat. If health data continues to support it, the Government intends to lift certain
 restrictions on 15 April 2020. This slow and controlled partial opening applies first to all
 childcare services, schools (up to age 11), and persons in vulnerable circumstances.
 Parliament aims to enable private employees to report physically to work on 14 April 2020,
 with due care and diligent observance of health guidelines.


 *
  Natalie Videbaek Munkholm, Associate Professor, Aarhus University; Mette Soested, Phd Student, Aarhus
 University.
 Mette Soested                                                                 Italian Labour Law e-Journal
 Natalie Videbaek Munkholm                                                    Special Issue 1, Vol. 13 (2020)
                                                                 Covid-19 and Labour Law. A Global Review
                                                                                   Section: National Reports




   By use of emergency legislative procedures, the Parliament has adopted several acts, as
well as tripartite agreements, providing different measures aiming to mitigate the
consequences of the covid-19 crisis, especially redundancies.


2. Emergency measures.
2.1. Effects of interruption of business operations on employment.

    In order to avoid large-scale redundancies, a Tripartite Agreement of 14 March 2020 was
concluded between the Government, the Danish Confederation of Trade Unions (FH) and
the Danish Employers’ Confederation (DA)1. It provides a state financed temporary salary
compensation scheme to employers with risk of large-scale redundancies. For employees at risk
of redundancy, the state pays the employer 75 per cent of the monthly salary, maximum
30,000 DKK (approx. 4,000 EUR), for every full-time employee. For employees paid per
hour, the state compensation is 90 per cent, but maximum 30,000 DKK. The employees
must take 5 days of outstanding holidays and/or time off in lieu during the salary
compensation period. In return, the employee cannot be terminated.
    In order to avoid redundancies in the service-, tourism-, hotel- and restaurant-industry, a
number of new 30-day-online-retraining-course has been established2. The course is full-time and
is available to employed skilled and unskilled workers as an alternative to not working or
being dismissed. The upgrading courses are established in collaboration between the largest
union United Federation of Workers (3F), the Employers’ Organization for the Restaurant,
Hotel and Tourism Industry (Horesta), and the Ministry of Employment. Employers pay the
course fee and salaries to the employees. Salaries are reimbursed with up to 100% from state
and union funds. Subsequently, other industries have adopted similar models of online
courses upgrading the skills of employees during the Covid-19 crisis.
    There has been a strong focus on the taking of holidays during the lock-down. For private
employees, taking of 5 holiday days is part of the salary compensation scheme mentioned
above. For public employees, a Tripartite Agreement was concluded on 27 March 2020,
which entails that all public employees that fully or partially do not perform work during the
period 28 March – 13 April 2020 must take remaining holidays (restferie) or time off in lieu
for up to five days3.
    In order to avoid redundancies and as an income support, the Government has
introduced more flexibility with supplementing unemployment benefits4. According to existing
collective agreements, employers can - in periods with lack of work – choose to distribute
available work between all employees rather than dismissing employees. Part-time employees

1-https://bm.dk/media/12873/trepartsaftale_corona.pdf.        Act    L141     of    24   March      2020:
https://www.ft.dk/ripdf/samling/20191/lovforslag/l141/20191_l141_som_vedtaget.pdf.
2-https://bm.dk/nyheder-presse/pressemeddelelser/2020/03/ny-mulighed-for-opkvalificering-frem-for-

afskedigelse-af-medarbejdere-i-service-og-restaurationsbranchen-under-corona-krisen/.
3-https://www.medst.dk/media/4515/aftale-om-visse-ansaettelsesmaessige-forhold-om-afvikling-af-frihed-i-

forbindelse-med-covid-19.pdf.
4 Employment Ministry information, 13 March 2020: https://star.dk/til-virksomheder/arbejdsfordeling-som-

alternativ-til-afskedigelse/.

https://doi.org/10.6092/issn.1561-8048/10803                                                                2
    Mette Soested                                                            Italian Labour Law e-Journal
    Natalie Videbaek Munkholm                                               Special Issue 1, Vol. 13 (2020)
                                                               Covid-19 and Labour Law. A Global Review
                                                                                 Section: National Reports




are entitled to receive supplementing unemployment benefits in the interim period.
Companies may now put a distribution of work scheme into effect immediately upon giving
notice to the Jobcenter.
    As an income support measure, the Parliament has decided to extend the use of unemployment
benefits, with the effect that unemployment benefits received during the covid-19 crisis do not
count as ‘used’, and the total period is extended accordingly5. Unemployment insurance
benefits are conditional upon membership of an Unemployment Insurance Fund (voluntary
membership).
    The Government has decided to increase financial support to employment initiatives for redundant
persons. The redundancy fund (varslingspuljen) assist employees, who are made redundant as
part of collective redundancies, with targeted efforts. The fund is increased with 10 million
DKK (approx. 1,340,000 EUR)6.
    Finally, a number of measures has specifically been targeted at sick leave benefits. The
employer paid benefits during sick leaves relating to Covid-19 virus has been transferred to
be paid by the Municipality, and the overall period of right to sick leave benefits is extended
with 3 months7.

2.2. Health and Safety.

    The National Health Service (Sundhedsstyrelsen) have issued guidelines, which includes social
distancing, hand hygiene and cleaning standards. These apply to all workplaces. Specific guidelines
have also been drafted for employers and managers8.
    Many public and private employees currently work from home, and, thus, the use of remote
work is prevalent throughout the community. The Danish society is very digital, and e.g. all
schools and universities continue teaching and education on-line.

2.3. Childcare.

    In connection with the closing of schools and public childcare services, emergency daycare
services were established9. This service is available to children between the age of 0 and 9 years,
whose parents are not sent home to work, i.e. public employees in essential functions, or
private employees not working from home. The emergency daycare service is available also
to special needs children.
    Schooling for children aged 6 and up continue online from their private homes. All homes
have private digital devices or they are on loan from the schools. Teachers communicate
online and organize online learning activities in all topics for all children.

5 https://www.ft.dk/ripdf/samling/20191/lovforslag/l142/20191_l142_som_vedtaget.pdf.
6 Governmental   Fact Sheet, 12 March 2020: https://bm.dk/media/12861/faktaark-om-varslingspuljen.pdf.
7-Act no. 135 of 17 March 2020:

https://www.ft.dk/ripdf/samling/20191/lovforslag/l135/20191_l135_som_vedtaget.pdf. Act no. 275 of 26
March 2020: https://www.retsinformation.dk/Forms/R0710.aspx?id=213710.
8-https://www.sst.dk/-/media/Udgivelser/2020/Corona/Informationsmateriale/SST-Covid-19-Gode-raad-

arbejdsgivere.ashx?la=da&hash=91E7B4C9BDBBCDCD37BE527A9E82272F5D82D626.
9 Ministerial Order, no. 217 of 17 March 2020: https://www.retsinformation.dk/eli/lta/2020/217.



https://doi.org/10.6092/issn.1561-8048/10803                                                              3
     Mette Soested                                                            Italian Labour Law e-Journal
     Natalie Videbaek Munkholm                                               Special Issue 1, Vol. 13 (2020)
                                                                Covid-19 and Labour Law. A Global Review
                                                                                  Section: National Reports




2.4. Particularly vulnerable workers.

    The Danish Health Authority has issued guidelines on ensuring safe work for employees,
who are at risk of serious complications if contracting covid-1910. This is particularly relevant
for public employees, who are not sent home, and work in situations of close physical
contact, such as the health-, social- and elder sectors, and (from April 15 2020) in childcare
and schools.
    For self-employed and freelancers, a temporary compensation scheme for lost revenue has been
adopted by the Parliament11. Companies, that expect to incur a loss in revenue of at least 30
per cent, may apply for compensation amounting to 75 per cent of the expected loss in
revenue, but maximum 23.000 DKK (3.080 EUR) per month (per person, if there are several
owners).
    Self-employed, that are not registered in the Central Business Register, may also apply for
a compensation of 75 per cent of lost income, but maximum 23.000 DKK. It is yet unclear,
whether zero-hour employment contracts are covered by this scheme.
    In addition, the payment of premiums for sick leave benefit insurance for self-employed persons
is delayed for three months12. Self-employed persons can take out voluntary additional sick
leave insurance, which allows them to receive reimbursement of sick leave benefits from day
1 or 3, rather than from day 15.


3. The role played by Social Partners.

   Following the lock-down, the Government has adopted several help packages to Danish
companies, employees, self-employed and others. The Social Partners have played a
substantial role in the design of the measures taken.
   Tripartite Agreements have been struck at both the private labour market (salary
compensation scheme) and the public labour market (taking of holidays during lock-down,
re-allocation of public employees to care functions). Furthermore, the model of offering
online retraining courses to workers at home is a result of an industry level collaboration,
and it is now being adopted in other industries.
   A Tripartite Agreement between the Municipalities and the negotiation group for public
employees (Forhandlingsfællesskabet) allows for re-allocation of public employees13. Public employees,


10 https://www.sst.dk/-/media/Udgivelser/2020/Corona/Notat-frontpersonale-s%C3%A5rbare/SST-notat-
frontpersonale-i-saerlig-
risikogruppe_15_03_20.ashx?la=da&hash=F93C1CF738367EFDABC2E8A3F685698971C31070
11 Agreement, 19 March 2020:

file:///C:/Users/AU231538/Downloads/Aftale%20om%20COVID_19_initiativer.pdf.
12-Amendment        of Executive Order on Sick Leave Benefit Insurance for Self-employed:
https://www.retsinformation.dk/Forms/R0710.aspx?id=213587.
13-https://www.kl.dk/media/23794/faelleserklaering-coronavirus_stor-gensidig-fleksibilitet-hurtighed-og-

vilje-til-at-finde-smidige-loesninger-centralt-og-lokalt.pdf


https://doi.org/10.6092/issn.1561-8048/10803                                                               4
 Mette Soested                                                          Italian Labour Law e-Journal
 Natalie Videbaek Munkholm                                             Special Issue 1, Vol. 13 (2020)
                                                          Covid-19 and Labour Law. A Global Review
                                                                            Section: National Reports




who are sent home, can be re-trained and re-allocated to assist with caring for children, the
elderly, the disabled, those with special needs, and in health-care.




Copyright © 2020 Mette Soested, Natalie Videbaek Munkholm. This article is released under
a Creative Commons Attribution 4.0 International License




https://doi.org/10.6092/issn.1561-8048/10803                                                         5
