Denmark

Government Measure

The deadline for filing of adopted annual reports to the Danish Business Authorities is postponed and companies may postpone their annual general meetings.

The rules reflect the current Danish ban on all gatherings involving more than ten persons to contain the spread of COVID-19. The deadline for filing the adopted annual report to the Danish Business Authority is postponed until 8 weeks after the ban on gatherings have been lifted for companies which meets the above requirements.

On 2 April 2020 the Danish Parliament adopted a bill regarding extension of the deadline for submitting the annual report by 3 months for all Danish entities subject to the Danish Financial Statements Act's obligation to submit an annual report to the Danish Business Authority.

No requirements are to be met in order to receive the extension, i.e. it is unconditional and not condition on the company being delayed due to COVID-19.

The Danish Minister of Trade and Industry has issued a statutory order, thus the bill is in force.

Eligibility

The following requirement apply:

• The company has more than 10 owners (or 10 persons required to attend the general meeting);
• The annual report for the prior financial year has not yet been adopted on a general meeting;
• The company’s articles of association do not allow the general meeting to be held entirely by electronic means; and
• The company is subject to the Danish Financial Statements Act.

Supervising Authority

The Danish Business Authority

No application is necessary. Filings of annual reports are made here.

Further guidance about the scheme is available here.

Availability

From 18 March 2020

Government Measure

The tax filing dates related to the income year 2019 has for all tax payers (private persons, companies, self-employed persons etc.) been extended to 1 September 2020.

Supervising Authority

The Danish Tax Authority

No application is necessary. Tax filings are made here.

Further guidance about the measure is available here.

Availability

From 31 March 2020

Government Measure

Companies, which are affected by COVID-19, that have obtained loans from the Danish Fund for Industrial Growth (in Danish: Vækstfonden) can have their interest payments and repayments put on hold for a period of six months.

Supervising Authority

Companies can apply the Danish Fund for Industrial Growth to use the measure by calling the “Corona hotline” (telephone number:+ 45 35 29 86 86).

Availability

Available

Government Measure

As an alternative to redundancies, businesses may send home employees (on full salary) and apply for salary subsidies equal to:

• 75 per cent of the total monthly remuneration (up to DKK 30k per month) for salaried staff, and
• 90 per cent of the total monthly remuneration (up to DKK 30k per month) for hourly workers, apprentices and trainees.

The subsidy applies for employees employed no later than 9 March 2020. Employees hired before 9 March 2020 and commencing employment between 9 March and 8 July 2020 can be comprised by the salary subsidy scheme from the commencement of the employment.

Eligibility

Businesses with a Danish Business Registration Number (CVR number) and at least one (eligible) employee.

The company can apply for the subsidy if it is planning on making at least 30 % of work force or 50+ employees redundant due to COVID-19. A corresponding share of the employees must be comprised by the scheme, except in case of special need to call back employees.

Employees sent home must not work, except:

• if called back, including as part of rotating shifts (e.g. weekly rotation). A reduction in subsidy will take place based on full working days regardless of the actual working hours performed by the employee called back.
• trainees and apprentices for education purposes

During a 3 months’ subsidy period, there must be a total of five days, where the employer will receive no salary subsidy and the employees are not entitled to salary (other than holiday pay, if any). If the subsidy period applied for is shorter than 3 months, the five days are prorated. The employer and the employee should seek agreement on the scheduling of the days and they must be distributed proportionally over the subsidy period. It is not clarified how the prolongation of the subsidy period affects the calculation of prorated days, with new guidelines expected soon.

Based on a supplementary agreement of 1 May 2020, apprentices and trainees are not required to take holiday subject to the above clause. The supplementary agreement has retroactive effect as from 9 March 2020. Details can be found here.

During the subsidy period, the company must not make redundancies on financial grounds. If the company carries out redundancies, the subsidy will automatically lapse at the time when the termination notice is served, and, in such case, all employees will be entitled to continue their employment on the terms applicable at the time they were sent home. The subsidies pertaining to the period prior to the lapse of the subsidy period due to redundancies must not be repaid. Termination by the employee or by the employer for other reasons than financial grounds will not bring the subsidy scheme to an end.

The employer cannot use other schemes for sending employees home without salary or other COVID-19 subsidies compensating for the same costs. Individual agreements on leave without pay can be entered into before the subsidy period.

More information is available here.

Supervising Authority

The Danish Business Authority

Applications may be submitted digitally to the Danish Business Authority here.

As the general rule, the employer can apply for subsidies only once, unless in order to include more employees under the scheme

At the latest 6 months after the end of the company’s subsidy period, the employer must provide to the authority attestation from an accountant setting out which employees have been sent home, documentation that the employees were sent home, the employees’ salaries and that the employees’ employment commenced before 9 March 2020. The shop stewards, if any, must certify the attestation.

Employers who have applied for subsidies before the scheme was extended on 18 April 2020 and who wish to receive subsidies until 8 July 2020 must apply for an extension of the subsidy period.

Based on a supplementary agreement of 1 May 2020, employers who wish to apply for extension of the subsidy period (as set out above) must pay mandatory taxes in accordance with international agreements. Also, companies based in ‘tax havens’ as defined by the European Union are not eligible for compensation. It is not clarified how this regulation will be realized.

Availability

From 9 March through 8 July 2020

(Originally form 9 March through 8 June 2020, but on 18 April a prolongation of 1 month through 8 July 2020 was agreed.)

Government Measure

Companies will be entitled to reimbursement of public sick benefits from the first day of the employee’s sickness related to COVID-19.

Employees who would otherwise have lost their entitlement to public sick benefits in the period from 9 March through 30 June 2020 will be entitled to receive benefits throughout the period.

In addition, companies are entitled to reimbursement of public sick benefits for employees who are not ill, but are unable to attend work due to Government instructions to stay at home due to the risk of the employee being infected with COVID-19.

Eligibility

All companies otherwise entitled to reimbursement for sick benefits under the generally applicable rules (such rules generally setting out that reimbursement is not available until after 30 days' sick leave for illness not related to COVID-19).

The employee must meet the usual requirements following from the Danish Sickness Benefits Act. In addition, the employee must be unfit for work due to COVID-19.

A medical statement is not needed, but it is recommendable that the employee issue a declaration to the employer that the employee reasonably assumes to be unfit for work due to COVID-19.

Supervising Authority

The Danish Agency for Labour Market and Recruitment.

Applications may be submitted digitally here in accordance with the generally applicable rules for public sick benefit reimbursement, including on deadlines. In the application, the company must state that the sick leave is due to COVID-19.

Further guidance is available here.

Availability

The period 27 February 2020 through 1 January 2021

Government Measure

A number of other measures to obtain liquidity or cost cutting in relation to employees include:

• Fixed term reduction in work hours with unemployment benefit compensation.
• Reduction of salary, benefits and/or work hours by voluntary agreement or unilateral notice.
• Spending of holiday, paid days off or time off in lieu of overtime based on agreement or unilateral notice.
• Redundancies.
• Additional measures may be available for employees comprised by a CBA, including financing of reduced work hours under a flexible spending account (in Danish: fritvalgskonto).

Eligibility

Fixed term reduction in work hours with unemployment benefit compensation is subject to special requirements, including on reporting and public approval as detailed here and here.

In connection with notification of materially changed employment terms (e.g. salary reductions), the effects of constructive dismissal, including termination notice requirements and termination rights/protection, should be considered.

In respect of holidays, statutory notice requirements must be considered in respect of holiday not already scheduled. The general notice requirements are 3 months for the summer holiday and 1 month for other holidays. Based on an assessment of the circumstances, the corona situation may qualify as grounds for reduced notices, including down to one day.

For redundancies, regulation, individual contract terms and collective bargaining agreements should be considered, including requirements on consultation with employees and information to public authorities in connection with mass redundancies.

Supervising Authority

Fixed term reduction in work hours: The Danish Agency for Labour Market and Recruitment. Application forms can be found here.

Mass redundancies: The Danish Agency for Labour Market and Recruitment. More information can be found here.