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ARTICLE · 16 SEPTEMBER 2020

Coronavirus: Agreement On New Work Distribution Scheme Reached In Denmark

The Danish Government and the social partners recently reached a tripartite agreement to establish a new temporary work distribution scheme in order to prevent dismissals.

DenmarkCoronavirus (COVID-19)

Earlier this year, the rules on work distribution laid down in the executive order on payment of unemployment benefits were eased to allow partial furloughs and thus avoid the need for dismissals during the Covid-19 pandemic. You can read about those rules here.

Based on the tripartite agreement, a new work distribution scheme will be established by statute, and all employers will be able to use his scheme. Employers may still apply the existing work distribution rules, but not concurrently with the new rules.

Establishment and scope

According to the tripartite agreement, employers must inform and consult with the relevant employees in accordance with the rules in any applicable cooperation agreements or the law. If, after the information and consultation process, an employee does not wish to take part in a work distribution plan, the employer can either choose to dismiss the employee or refrain from using the plan altogether. This is because, under the new

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