Financial Assistance to Save Danish Jobs

Statsminister Mette Frederiksen

writer icon Emma Egelund     ISB   |   Business     🕐 16. Mar. 2020

Yesterday, Sunday the 15th of March, Prime Minister Of Denmark Mette Fredriksen announced a new financial assistance packet.

The government and the labour market partners have agreed on financial assistance to save Danish jobs.

Sharing the Bill
Employer, business owner, and the Danish state will all share the expenses of keeping employers in their job during this crisis, explains the Prime Minister at a press conference in the Prime Minister's Office.

This is the result of the announced tripartite agreement between the government and the labour market partners, which has now fallen into place.

Employees hired by private companies who have a threat of being laid-off due to the corona crisis will get 75 percent of their salary covered by the Danish state.

The last 25 percent will be paid by the company itself and the employee will have to promise to take 5 days off work in the given time frame.

Concerning employees who are hired on an hourly basis, the state pays up to DKK 26 000, here the salary compensation is up to 90 percent.

"The echo of what we do now will be heard in the future! It is now that we are laying the groundwork so that companies and employees get best through the crisis," says the Prime Minister.

It Does Not Apply To All Businesses
The financial assistance packet applies to companies who face having to lay off at least 30 percent of employees or more than 50 employees.

Conversely, companies undertake not to lay off employees for financial reasons while receiving compensation from the state.

An Attempt to Stop Layoffs
The new initiative by the Danish Government is created to stop any further businesses cutting their employees.

There have already been layoffs in the Danish labour market as a result of the corona crisis and more are expected to be on the way.

"We must do everything we can to keep Danish business and employees as much out of the crisis as possible. We have a great understanding that you want to send employees home, but don't fire them," says the Prime Minister.

The new financial assistance packet is expected to cost the Danish state DDK 2.6 billion and should help the businesses pull through the corona crisis, explains the Prime Minister.

The financial assistance will be available retroactively from 9 March to 9 June.

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