Three party agreement gives companies and parents the opportunity for early reimbursement in the event of illness due to Covid-19

The two temporary schemes are to help ensure financial security for companies and families with children, in a time where an increasing number of employees and children are infected with Covid-19. The increasing infection rate intensify the pressure on companies, that are experiencing more sick leave because of Covid-19.  

In addition, the schemes must ensure that both companies, employees, and the self-employed support the guidelines of the Health Authorities. The three-party agreement thus contributes to secure the rights of employees, support companies financially, and protect the healthcare system.

Temporarily extended right to employer reimbursement

The temporary suspension of the employer period allows employers to receive sick pay reimbursed from the employees’ first day of illness, when the employee tests positive for Covid-19. The scheme also allows employers to receive sick pay from the first day of absence in cases where employees must go into self-isolation because they are assessed as a “close contact” to an infected person.

Sick pay for the self-employed

Self-employed persons who are in the same situation, where they are either infected or required isolation, can receive sick pay from the municipality from the first day of absence. However, the scheme will not apply to employees who can work from home.

Maternity pay for parents of home send children

Parents of children who have been documented infected with Covid-19 or who are sent home due to Covid-19 at school or at the institution, etc. can receive maternity pay according to the scheme.

Only employees and self-employed persons who have children up to and including the age of 13, are covered by the scheme. To use the scheme, it is a requirement that the covered parents meet the maternity law’s conditions for entitlement to unemployment benefits, including the job requirement.

The maternity pay, which is paid under the scheme, is paid directly to the parents – and not as reimbursement to the employer.

When do the temporary pay schemes apply?

Both schemes are resembling the agreements that expired on 1 July 2021. The new, temporary schemes apply from 23 November 2021 to 28 February 2022.   

However, both schemes require a change in the law, and the Government will try to get the support of the Danish Parliament for an urgent treatment, so that the schemes can influence society as soon as possible.

Read the entire three-party agreement on the Employment Ministry’s website here.

If you have any questions about the new three-party agreement or other questions regarding Covid-19 in the workplace, please do not hesitate to contact our employment law specialist Partner, Attorney Michael Møller Nielsen, Attorney Julie Flindt Rasmussen or Assistant Attorney, Anna Lindencrone Lundin.