Concluded tripartite agreements on temporary wage compensation

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Bente SORGENFREY
Danish Trade Union Confederation (FH)

The Danish Trade Union Confederation is the largest national trade union confederation in Denmark and is recognised as the most representative workers’ organisation in both the private and the public sectors.

On 14 March, the Danish government and the social partners concluded a tripartite agreement on temporary wage compensation.
The agreement covers employees working in private companies that are suffering particular financial hardship due to COVID-19 and are therefore facing the possibility of making at least 30 per cent - or more than 50 - of their employees redundant.
The companies can use the new wage compensation scheme if they opt out of the existing possibilities for temporarily laying off employees without pay.

Companies in the private sector continue to provide full pay for their employees during the compensation period, even though they may be suffering severe financial hardship due to COVID-19. Employees who are at risk of redundancy cannot work, but are laid off temporarily with full pay during the compensation period.

In addition, it was agreed to offer some security to the unemployed, by providing them with training and by extending the period of unemployment benefits. Finally, support schemes were set up for small businesses, self-employed workers and freelancers.

More or less the same form of assistance will be offered to freelancers who see their working opportunities disappearing.

Background

Denmark: Fact sheet "Tripartite agreement aims to help employees" - Fact sheet "Working time distribution will become more flexible" - Tripartite agreement on temporary wage compensation for private-sector employees