COVID-19: Temporary three-party pay compensation agreement extended

The original agreement was made on 10 December 2021 between the Government and the social partners and concerned a temporary pay compensation scheme for the companies that suffer the most. The three-party agreement was originally meant to be valid until 15 January 2022.

Read our previous article on the compensation schemes here.

ADJUSTED REQUIREMENTS

According to the original agreement of 10 December 2021, it was a requirement that the company send home at least 30% of the employees in order to receive compensation.

For the new agreement, the company must either send home 30% of its employees or send home 50 or more employees on average over the period. Thus, the requirement for sending home employees has been adjusted.

The scheme applies retroactively from 10 December 2021 to 31 January 2022.

In the case of forcibly closed companies, they can continue to apply for pay compensation while they are closed due to bans.

If you have questions about the new three-party agreement on the extension of the pay compensation scheme or any of 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.