Payment in the event of bankruptcy, cessations of operations and restructuring

LG can help you if your employer has gone bankrupt

Start

Get off to a good start

LG can pay your salary, etc. if you were working as an employee. 

You are an employee if you have been officially working for an employer. This means that you must have done the work personally on behalf of your employer and subject to your employer’s instructions and control. 

It is the function of a job and not the job title that determines whether you are an employee. 

Who is not an employee?

If you have not been hired as an employee, you cannot get money from LG. 

Read more about who does not qualify for receiving money from LG: 

Who is closely related?

You can also not get money from LG if you have been closely related to the company.

Read more about who is closely related here: 

You can read more about what LG may pay: 

LG's payment cannot exceed DKK 160,000. In addition, we pay holiday allowance, payment of Sundays and public holidays and the balance in your free choice wage account. How much you can receive from LG depends on your employment.  

Your type of employment matters 

How much you can get paid from LG depends on the manner of your employment. 

Here you can read about the different types of employment:

How to submit your claim

Start Make a claim to LG

You must submit a claim to LG if you are owed salary, etc.  

When can I submit a claim? 

You can only submit a claim for owed salary, etc. when your employer has been declared bankrupt, ceased operations, become insolvent, has died or is in restructuring. 

Please note that there are different deadlines for submitting claims for bankruptcies, ceased operations, insolvency, death or under restructuring.  

Are you a member of a trade union?

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

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. 

Deadline for submitting claims during restructuring 

If you have been terminated or released from your duties before or during your employer’s restructuring, there is no deadline for submitting claims. However, it is a condition that you have submitted your claim to LG and that LG has processed your claim before your employer’s restructuring is completed. 

LG receives many new claims and inquiries every day, and they will be dealt with in the order in which they are received. 

You can read more about when you can expect to hear from LG: 

If you have been terminated and released from your duties during restructuring, LG can only process your claim while your employer is undergoing restructuring.

Is there anything I can do myself? 

You can help ensure that your submitted claim is processed as quickly as possible. You can do so by remembering to send all necessary documentation along with your claim.

Payment

Salary

LG pays your salary, etc. to you. 

It will take 3-5 working days before the money is transferred to your account. 

Holiday pay 

LG pays your holiday pay to FerieKonto. 

You can apply for the payment of your holiday pay by contacting FerieKonto. 

For labour unions and attorneys

If you are a representative of an employee, you can help the employee submit a claim to LG. The employee will give you a power of attorney for the claim.  

Power of attorney

It is your responsibility when having power of attorney to communicate information from LG to the employee. 

This applies until the case is completely processed by LG. 

Revocation of powers of attorney

If you no longer need to have power of attorney in the case, you must send a notification of this to LG. 

In the event of restructuring

As a holder of a power of attorney, you will not get access to see how much has been paid to an employer during a restructuring process. 

The payments during a restructuring process have no impact on the employee’s opportunity to later get paid salary, etc. from LG in the event of a bankruptcy.

Other topics

The Employees' Guarantee Fund (LG) ensures that employees receive wages etc. when their employer is declared bankrupt, ceases operations or under restructuring. If your employer undergoes restructuring, LG can help employees who have been terminated and released from their duties. 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: 

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.

Contact LG

Last updated: 01 October 2021