Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure DK-2020-33/2482 – Updated – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Open ended, started on 10 August 2020|
|Context||COVID-19, Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Flexibilisation and security
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Measure added||23 June 2022 (updated 23 November 2022)|
A firm (no restrictions in terms of size or other criteria) undergoing mass redundancies must make a written application for funding from the warning pool in cooperation with the local job centre.
The application shall, among other aspects, specify how the company proposes to use the funding. The firm must complete its application for funds in conjunction with the local job centre. Union representatives are involved in negotiating an arrangement with the job centre and employers.
The warning pool applies to companies undergoing major job reductions, affecting at least 50% of the workers at a workplace with at least 100 employees.
Workplaces with at least 20 employees can undergo a trial period.
According to the state budget, in January 2020, the warning pool was raised from the previous years to DKK 6.3 million (€0.85 million). Workplaces with at least 20 employees can undergo a trial period.
Project activities can involve:
The warning pool is divided into 'Ordinary warning pools and' and 'Supplementary warning pools'.
'Ordinary warning pools' can be used to establish a temporary employment service office in the workplace regardless of the size of the firm. Caseworkers from the PES, based at the service office, deliver individual job search assistance and/or help employees build a job strategy.
'Supplementary warning pools' aim at supporting displaced workers after their notice period if they are still unemployed and receiving unemployment insurance benefit. Grants for skills upgrading are granted for skills in current or future demand or whenever an employer wants to hire an unemployed individual without a wage subsidy after a completed skills upgrading course.
The following updates to this measure have been made after it came into effect.
|31 October 2022||
As for 2022, the state budget to the Warning Pool has been reduced to DKK 5,9 million.
During the COVID-19 crisis the pool has been further raised due to the impact of the following significant economic downturn on the companies. In March 2020, when lockdown took place in Denmark in order to avoid dissemination of the virus, the warning pool was extended with DKK 10 million (€1.34 million), thus amounting to DKK 16.3 milion (€2.2 million) in total.
In September 2009, when the economic crisis peaked in Denmark, DKK 22 million (about €3 million) out of DKK 28 million (about €3.8 million) available for the warning pool were spent on providing support in connection with mass redundancies. In the last years the warning pool has mainly been used in cases of collective redundancies.
Employees in standard employment
||Applies to all businesses||Does not apply to citizens|
Local / regional government
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Warning pool, measure DK-2020-33/2482 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2020-33_2482.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.