Payment in the event of bankruptcy and cessation of operations

You can get compensation for wages, holiday pay, pension etc. if the company is declared bankrupt

You can get compensation for wages, holiday pay, pension etc. if the company is declared bankrupt

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Start Make a claim to LG

You must notify LG (Lønmodtagernes Garantifond = Employees' Guarantee Fund) if you have not received your wages etc.

Your employer must have been declared bankrupt or have ceased operations and been declared insolvent before you can report a claim to LG.

Deadlines in the event of bankruptcy and cessation of operations

When you report a claim to LG, you should be aware of our deadlines for reporting which are:

  • no later than four months after your employer has been declared bankrupt
  • no later than six months after your employer has ceased operations and been declared insolvent

Deadlines in the event of death

If your employer has died, there are two deadlines that must be observed:

  • You must report your claim for wages etc. to LG no later than four months after the bankruptcy court has decided if your employer's estate is insolvent.
  • You must also report your claim for wages etc. to the lawyer of your deceased employer's estate no later than eight weeks after a notice has been published in the Danish Official Gazette.

Are you a member of a trade union?

If you need help reporting your claim to LG, you can contact your trade union.

LG can help when your employer has been declared bankrupt or has ceased operations and been declared insolvent.

Here you can check if your employer has been declared bankrupt or has ceased operations:

Here you can read about what to do if your employer has not been declared bankrupt or ceased operations:

LG pays holiday allowance in accordance with the provisions of the Danish Holiday Act (Ferieloven). You can read more about how LG calculates your holiday allowance:

Many different schemes manage and disburse holiday allowances. If you have a holiday card, you must contact the holiday guarantee scheme stated on your holiday card.

Time barring of holiday allowance

LG can pay holiday allowance which has not been time-barred in accordance with the provisions of the Danish Holiday Act. You can read more about time barring of holiday allowance:

The Employees' Guarantee Fund (LG) ensures that employees receive wages etc. when their employer is declared bankrupt or ceases operations. LG can also help the employer to pay wages to employees working for the company, while it is subject to financial reconstruction.

If you do not agree with LG's decision

The legislation to which LG is subject falls within the Danish Ministry of Employment, but you cannot complain about the decision to the Ministry.

If you do not agree with LG's decision, you are welcome to contact us and possibly send further documentation supporting your claim. LG will review your case and send you a new decision.

If you still do not believe that our decision is correct, you will have to initiate legal proceedings against LG at the courts. LG has no appeals board, and therefore the case can only continue at the courts. In this case, you must contact the court in Hillerød.

Contact the customer ambassador

If you are dissatisfied with the service you received from LG, you can contact ATP's customer ambassador:

Legal framework and management

LG was established in 1972 and is part of the Danish social safety net.

LG is an independent institution, managed by the social partners and governed by a special legal statute.