If you are employed as a trainee/apprentice and your employer is bankrupt, ceases operations, becomes insolvent or undergoes restructuring, LG can pay you the salary you are owed. LG pays your salary up until the day that you were last working for the employer.
You are also entitled to an allowance for the termination of your educational agreement if the termination was due to your employer’s bankruptcy or restructuring.
If your education was interrupted during your trial period, you are not entitled to salary or compensation during a termination period.
The trial period is the first 3 months of a traineeship/apprenticeship.
If you were a trainee/apprentice but outside of the scope of The Danish Salaried Employees Act, LG will pay an allowance of DKK 40,000 for the termination of your educational agreement. If you were an adult trainee/apprentice, the allowance is DKK 53,000. The termination must have been because of the employer’s bankruptcy or restructuring.
LG does not pay salary during a termination period for a trainee/apprentice who was not employed as a salaried employee.
If you were a trainee/apprentice covered by the scope of The Danish Salaried Employees Act, LG will pay your salary, etc. during the termination period. The length of the termination period is based on the provisions of The Danish Salaried Employees Act.
The termination period is considered to be from the day your education was interrupted.
Read more about notices of termination in The Danish Salaried Employee Act.
You are also entitled to an allowance of DKK 20,000 for the termination of your educational agreement. If you are an adult trainee/apprentice, the allowance is DKK 26,500. The termination must be due to the employer’s bankruptcy or restructuring.
The allowance is only paid once your termination period has passed.
You must fill out the form ‘Documentation for earnings and job searching’ in order to be paid holiday pay for your termination period. The form will be sent to you from LG automatically. Here you must document whether you have had earnings and taken holidays during your termination period.
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:
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: