Closely related persons in the event of bankruptcy, cessation of operations and restructuring

If you are the sole shareholder or own a significant part of the company, you are closely related to the company, and you cannot get money from LG. 

This is because through your ownership you have had a financial interest in the company’s operations and have also had the opportunity to impact the company’s results both negatively and positively. If you have only owned a small part of the company, your case will be assessed based on a concrete estimation. 

Here, LG pays close attention to your terms of employment and if you, for example, while being an owner was also part of the company’s top management team.

If you own employee equities, you will normally qualify for LG’s cover as the proportion of the company’s equities that you own will typically be insignificant.

If you are married or cohabiting with the owner of the company, you are closely related to the company and cannot get money from LG. 

This is because via your marriage/relationship with the owner, you have had a financial interest in the company’s operations. 

If your spouse/common-law partner only owns a small part of the company, it will be a matter of a concrete assessment whether you can get money from LG.

If you are related to the owner of the company, you are closely related to the company and your case will be assessed based on a concrete estimation. 

Here, LG will among other things consider how closely related you are to the owner and the terms of your employment.

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:

• ATP's customer ambassador

• View laws and executive orders