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Amendment of the Danish Sickness Benefits Act - the employer paid period extended

January 2009 - Employment. Legal Developments by Norrbom Vinding Law Firm, member of ius laboris.

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04-07-2008 - In May 2008, the Danish Parliament amended the Danish Sickness Benefits Act to increase the period in which the employer must bear the cost of salary paid during sickness or sickness benefits from 15 to 21 calendar days. Only after this period will the employer be entitled to claim a refund of the sickness benefits to compensate for some or all of the cost of sickness benefits or salary paid during sickness. It will still be possible for small employers to take out sickness benefit insurance and to agree a refund of sickness benefits with the relevant local authority in case of long-term or permanent sickness.

It can be seen from the explanatory notes that the amendment is intended as an incentive to make employers implement a more active sickness absence policy and in that way help prevent short-term sickness.

The Act was amended with effect from 2 June 2008 and applies where the first day of sickness absence falls on or after that date. 

Marianne Granhøj
mg@norrbomvinding.com

This information does not constitute legal advice and should not be relied upon as such

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