If you are a salaried employee and your company goes bankrupt, ceases operations, becomes insolvent or undergoes restructuring, LG can pay you the salary, etc. that you are owed. You can also get your salary during the termination period covered.
See if you are a salaried employee as per The Danish Salaried Employees Act.
Here you can see how long your notice period is when you are covered by The Danish Salaried Employees Act’s provisions on notice periods:
Your termination period is counted as part of your period of employment.
If you were employed for 2 years and 9 months, you are entitled to a 3-month notice period. However, if you were dismissed after 2 years and 10 months of employment, you have a 4-month notice period because your regular employment period plus the termination period will exceed 3 years.
If you are a salaried employee, you are entitled to a minimum compensation. The minimal compensation is compensation for missing salary payments during your compensation period after you have been released of your duties.
The minimal compensation period amounts to pay for up to 3 months that you are entitled to even if you get a new job during the termination period. Therefore, you will be paid the entire minimal compensation already alongside the first payment from LG.
If your notice period is longer than 3 months, LG can only calculate your final compensation when the entire termination period has ended.
LG looks at what your earnings have been in the entire termination period in relation to what your projected earnings would have been if your employer had not gone bankrupt or under restructuring. The minimal compensation is included in the calculation.
If you have had less earnings than expected, LG will pay the difference, but if you have earned more or the same as expected, LG cannot pay more.
If you are a salaried employee and have been employed by the company for at least 12 years at the time of dismissal, you are entitled to an allowance amounting to 1 month’s salary.
If you have been employed as a salaried employee by the same company for at least 17 years at the time of dismissal, you are entitled to an allowance amounting to 3 months’ salary.
This is called a dismissal allowance or a 2a allowance.
You must fill out the form ‘Documentation for earnings and job searching’ in order to be paid salary, etc. for your termination period. LG sends the form to you together with our first letter.
If you have gotten a new job during the termination period, you must send documentation for your earnings.
You must also state whether you have taken holiday in your termination period and how many jobs you have applied for.
You must only fill out and send the form to LG once the entire termination period has ended. You can find an English version of the form here:
You must apply for jobs throughout the entire termination period in order to be entitled to compensation in excess of the minimal compensation.
You must apply for at least 3 to 4 jobs per month.
If you take holidays during the termination period after you have been released of your duties, you are not obliged to apply for jobs in the period that you are on holiday.
You also do not have to apply for jobs if you are on sick leave. Remember to send documentation of your illness, for example, in the form of a doctor’s note or a copy of the sickness benefit specifications.
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.
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.
If you are dissatisfied with the service you received from LG, you can contact ATP's customer ambassador: