Factsheet for measure
DK-2020-11/625
–
Updated
– measures in Denmark
Expanded entitlement for employer for reimbursement and for self-employed for sickness benefit
Udvidet ret for arbejdsgiver til refusion og for selvstændige til sygedagpenge
Background information
The government proposes a bill that employers are granted an extended right to reimbursement for wages or sickness benefits that are paid to employees who are absent as a result of COVID-19. It is also proposed that self-employed persons receive an extended right to sickness benefits for absence due to COVID-19. The purpose of the bill is to mitigate the negative financial consequences for employers as a result of the spread of COVID-19.
Content of measure
The law will allow reimbursement to employers for paid wages and sickness benefits to employees who are absent for the first 30 days of the sickness period – the so-called the employer period. In addition, self-employed workers can receive sickness benefits from the first day of absence instead of after the usual self-employment period of two weeks.As the rules are today, employers have a duty to pay wage expenses during sickness or sickness benefits for 30 days. The bill will suspend the obligatory ‘employer period’ regarding employees who are infected or quarantined due to COVID-19, but will continue to apply to persons and employees who are on sick leave for any other reason.
The compensation measure will be in effect from 27 February 2020 until 1 January 2021.
Updates
The following updates to this measure have been made after it came into effect.
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14 December 2021
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The government has decided to expand the entitlement for employer’s reimbursement for sickness benefit. The new bill, which have been approved is as follows:
“The employer is entitled to reimbursement under the Sickness Benefit Act from the first day of absence if, because of infection with COVID-19 or as close contact with a person infected with COVID-19, an employee is in isolation in accordance with the Danish health authorities' recommendations to this effect. Similarly, it is proposed that a self-employed person should be able to receive sickness benefit from the first day of absence in the same situation.
In addition, it is proposed that parents who may stay at home to care for their children because the child has been found infected with COVID-19 or have been repatriated because of one or more COVID-19 cases of infection in the day care, school or institution, etc., will be entitled to unemployment benefit under the Maternity Act. The new legislation is in force from December 14th, 2021”
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23 March 2021
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The Danish parliament agreed to extend the scheme which gives employers an extended right to reimbursement from the employee's first day of absence until 30 June 2021.
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Use of measure
The proposal is expected to result in considerable public expenditure in the order of DKK 1,650 million. The cost of the proposal will largely depend on the development in the number of COVID-19 infected.
Target groups
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Workers
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Businesses
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Citizens
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Applies to all workers
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Does not apply to businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Company / Companies
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
No involvement.
Views and reactions
Since the government intended to rush the bill through Parliament, the social partners were not informed or consulted the regular way.
Sources
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12 March 2020: Coronavirus: Regeringen vil give virksomheder refusion fra dag et
(ekstrabladet.dk)
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17 March 2020: LOV nr 212 af 17/03/2020 -
(www.retsinformation.dk)
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18 March 2020: Visse typer af fravær, der skyldes COVID-19, giver udvidet ret for arbejdsgivere til refusion og for selvstændige erhvervsdrivende til sygedagpenge
(star.dk)
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23 March 2021: Majority extends sickness benefit schemes for corona sufferers and ensures maternity leave for self-employed with closed companies
(bm.dk)
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23 March 2021: L 192 Draft law amending the Law on Sickness Benefits and the Maternity Act.
(www.ft.dk)
