COVID-19: Companies can make use of the general compensation schemes again

The Government and a broad majority of the parliamentary parties have entered into an agreement on reopening the general compensation schemes, according to which companies and cultural life can apply for help via the compensation scheme for fixed costs, loss of turnover for the self-employed, arts support scheme, organizer scheme etc.

REINTRODUCTION OF PREVIOUS SCHEMES

Compensation for forcibly closed companies

• Forcibly closed companies such as the night life have access to full compensation for fixed costs.
• The self-employed scheme will be reintroduced, which means that forcibly closed companies without turnover can receive 100% compensation for the loss of turnover.

Compensation for fixed costs and fixed costs ‘light’

• The previous compensation scheme for fixed costs applied from 1 October 2021 to 31 December 2021. The compensation scheme will now be extended to 28 February 2022. In continuation of this, the requirement for the turnover reduction has been reduced from 45% to 30%. This applies retroactively from 1 December 2021.
• In addition to the compensation scheme for fixed costs, companies can apply for compensation for fixed costs based on a fall in turnover only in December 2021. This must accommodate companies etc., that experience a large decline in turnover in December due to the restrictions.
• The deadline for when a company must be registered in the CVR register is changed to 7 December 2021.

Compensation for the self-employed, etc. including the art support scheme

• The compensation scheme for the self-employed, etc. including the art support scheme is reintroduced, in which there is a requirement for a reduction in turnover or income of 30%. Self-employed, etc. can be compensated with 90% of its loss in turnover or income. This also applies to the art support scheme. The art support scheme is aimed at professional artists with a significant connection to the Danish art scene within architecture, visual arts, film, literature, arts and crafts and design, music, performance art and branches of art that can be equated with these arts.
• With “self-employed, etc.” mean:
  • A business owner, regardless of the type of business, whose business should be registered by 7 December 2021. See below.
  • Persons, including freelancers, without CVR number, who have had income as B-income until 7 December 2021, and who have a permanent place of work in Denmark.
• Self-employed with employees can apply for compensation up to DKK 33,000.00 per month. For other self-employed persons, a ceiling of DKK 30,000.00 applies. Self-employed persons make a solemn declaration that one will not take more than 23,000.00 out of the company per month during the period in which the compensation rate is received.
• For freelancers and artists, the rate is DKK 23,000.00 per month. For combiners, the rate is DKK 20,000 per month.
• The compensation scheme for the self-employed, etc. including the art support scheme can be applied retroactively from 1 December 2021 until and including 28 February 2021.  
• The deadline for when the self-employed must be registered in the CVR register is changed to 7 December 2021. This also applies to freelancers, combiners, and artists.

The organizer scheme

• The organizer scheme is reintroduced for events that were planned before 7 December 2021, or which are regularly recurring events, and which have at least 350 people who have been/will be cancelled, postponed or changed significantly.
• The deadline for when a company must be registered in the CVR register is changed to 7 December 2021.

Extension of loan and guarantee schemes

• Loans and guarantee schemes will be extended under resp. EFK, The Business Development Finance and the Travel Guarantee scheme until 28 February 2022.

NEW SCHEMES

Smaller venues

• A new scheme has been established to cover venue cancellations, postponements, or changes to smaller indoor events with a standing crowd of 51-349 people.
• The scheme only applies to venues, etc., which primary purpose is to host events such as concerts or stand-up performances.
• The scheme does not apply to companies that have another primary operation and that host a smaller event, such as a disco that hosts a concert or a sports club that hosts a party. To make use of this scheme, the event must be announced before 7 December 2021, just like the regular organizer scheme.

Pool for discarded perishable goods

• An agreement has been made for a pool targeted at companies and suppliers who, due to the restrictions, are saddled with perishable goods during the weekend of 10 December to 12 December 2021.
• A company can receive a maximum compensation of DKK 40,000.00.

Read the full agreement on reopening the general compensation schemes here.

If you have questions about the reintroduction of the general compensation schemes or the new schemes, please do not hesitate to contact our employment law specialists Partner, Attorney Michael Møller Nielsen; Attorney Julie Flindt Rasmussen or Assistant Attorney Mina Faiz.