(Updated 25 March 2020, 9am CET)
The rapidly-changing situation of COVID-19 means Governments and agencies around the world are constantly updating and reviewing advice and support, especially for the health and safety concerns of people. We understand it can be difficult to get clear advice about what you and your people can be entitled to and how to apply. So while we always recommend you get in touch with your local authority to get specific information and advice, here are some measures you should consider when seeing if Government assistance can help you, writes Planday’s VP — Customer Success, Jacob Pyndt.
No matter where you do business, the way you do it will have been changed by the outbreak of COVID-19. We understand this is a really tough time for many businesses and those in the hospitality, retail, healthcare and leisure and entertainment sectors across the world.
Denmark is Planday’s home and we — like the millions of businesses across the country — have been in lockdown since early March in a bid to try and slow the spread of COVID-19.
We have tips for each of these sectors to invest now and come out the other side of this crisis as strong as possible. Head over to The Planday Blog to find out more on what this means to you.
It’s a pretty scary and uncertain time for all of us. But it’s encouraging to see Governments around the world step up and help those businesses and the people they employ who are affected by change in working conditions or circumstances. So here’s a quick list of some of the support measures your business might be able to access in Denmark to help you bounce back stronger.
The Government has the following forms of support available.
Compensation for an independent business
Compensation is available for privately-owned companies (for the period March 9th to June 9th 2020), if that company fits the following criteria:
- Expects a revenue loss by at least 30%
- Has an average turnover of more than 15.000 DKK for prior period
- The main owner must own at least 25% of the company and work for the company
- The private owner and company must be registered in CVR and CPR register
- It must have a maximum of 10 full-time employees
- The company must be registered before February 1 2020
How do you apply for it?
While the details will be on this link soon, the documents needed to apply are:
- Proof that your revenue loss is due COVID-19
- A signed sworn statement
Are there restrictions?
Yes, there are a few.
- If the personal income of the private owner is more than 800.000DKK in 2020, the compensation must be refunded
When is it available?
- From week 13 onwards, companies can apply for it for period March 9th to June 9th 2020
Compensation for fixed expenses
Some compensation is available for fixed expenses (for the period March 9 to June 9 2020).
There is a maximum compensation of 60 million DKK. If your revenue loss is less than 40% then it will have to be refunded.
Who is it available for?
All private owned companies that fulfil the following requirements are eligible
- You expect a revenue loss of at least 40% because of COVID-19
- Your fixed expenses must exceed 25.000 DKK (in the period March 9 to June 9 2020)
Salary compensation for private companies
Salary compensation is available for private companies in Denmark.
|Full-time employees||75% of the total salary expenses for the employees affected (up to a maximum of 23,000 DKK per employee per month)|
|Part time employees||Up to 90% of an employee’s salary (up to a maximum of 26,000 DKK per month)|
In order to qualify, companies will have to have redundancies of at least 30% of the staff or have more than 50 employees.
There are a number of key restrictions companies must follow:
- You still have to pay the full salary of the employees even though you have a loss in revenue, for the period of March 9 to June 9 2020
- Employees may not work in the period of time, but must be sent home with a full salary
- Companies must not fire employees due to revenue loss
- The individual employee for whom the company applies compensation for must use vacation and/or leisure time for a total of five days in connection with the compensation period.
- If the employee does not have holidays or leisure time left adding up to five days, leave without pay or days from the new holiday year must be held. The company cannot receive pay compensation for these days.
When is it available?
- Possible to apply from March 25 2020, for the period March 9 to June 9.
What documents will you need?
- A list of employees sent home with full salary (at least 30% or at least 50 employees)
- CPR number, salary and employment type (if the employee is a full-time or part-time employee) for each employee
- Period for which compensation is sought, as well as justification
- A signed sworn statement from management that the information is accurate
- On the other side of the COVID-19 crisis, documentation must be provided that the scheme funding was used. This means that, when the compensation period has expired, the company must document that it has sent home the affected employees during the specified period.
- Employees must be employed before 9 March 2020
- If you have a professional representative, the documentation must include a confirmation from the employee that the employees have been returned home without work. The documentation must be done with the assistance of an accountant.
Compensation for cancelled events
Compensation is available for events with more than a thousand participants which had to be cancelled due to COVID-19 in the period March 6 to March 31.
This can also apply for events with 500 participants if the event targeted the special risk groups, for instance people who are over 80 years old, pregnant or chronically ill.
What are the restrictions?
You can’t apply for compensation for:
- Lost profits. The compensation must not contribute to profits.
- Events for which your company is listed as an organiser
- Events organised by public actors (e.g. municipalities or self-governing institutions receiving public grants for operation)
- Costs covered by insurance
- Expenditure covered by other public support
- Events which are closed for public registration (e.g. corporate or member events)
- Country collections. You can instead apply through the Ministry of Culture’s compensation scheme.
We understand that this is a very worrying time for many businesses and people around the world. We are ready to support businesses, make communications more seamless and bring your team together with smart digital tools.
This piece is general in nature and should not be taken as professional, legal or qualified advice. Before taking any action at this time, we urge you to read the terms and conditions of each of the relevant agencies and seek your own specific professional advice before making any business decision. All information has been sourced from Government agencies and websites and links are contained within.
If you or your business are a Planday customer, our support team is available to assist your business bounce back stronger once this crisis ends.