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Coronavirus: New draft bill to introduce the temporary division of labour scheme

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calendar 10. september 2020
globus Denmark

In prolongation of the tripartite agreement, a draft bill has been proposed to implement the new temporary division of labour scheme, supplementing the existing division of labour scheme. In accordance with the new draft bill, companies will be able to initiate a division of labour agreement based on the new scheme - irrespective of any provisions in collective bargaining agreements – until the 31 December 2020 at the latest, with a duration of up to 4 months.  

The new division of labour scheme is intended as a replacement to the salary compensation scheme, which lapsed on 29 August 2020. The main objective of the new scheme is therefore to extend the transitional period by providing support to companies to avoid redundancies as a result of the expiration of the salary compensation scheme. To ensure this, the new scheme will, among other things, ensure that provisions in collective agreements are suspended temporarily.

Compared to the existing division of labour scheme, the new temporary scheme introduces more flexibility for companies to organize the workload. This includes:

  • That reduced working hours under the labor division must be minimum 20 % and maximum 50 % calculated in average over a 4-week period

  • That after the company announces the initiation of the division of labour scheme, employees will have 24 hours to decide if they want to participate in the new scheme. Failure to provide a response will result in the employees being included automatically

  • That employees will have an increased income security, as the maximum rate for unemployment benefits will simultaneously be raised to up to kr. 23,000 for a full-time employee. In addition, employees that are not covered by unemployment funds will be given an extraordinary access to supplementary unemployment benefits

  • Companies can choose to make use of qualification courses fully or partly, in the periods where the employee is unemployed. Employees undergoing educational courses can, upon agreement, be exempted from the division of labour.

According to the new draft bill, an agreement on temporary division of labour can be made up until 31 December 2020. Companies can apply the new scheme for up to 4 months in total.

The new draft bill on division of labour is currently being processed and is scheduled to enter into force on 14 September 2020. We are following the developments closely and will revert with new developments.

 [Draft bill on access to implementation of a temporary division of labour scheme as part of the handling of covid-19 of 4 September 2020]

The new division of labour scheme is intended as a replacement to the salary compensation scheme, which lapsed on 29 August 2020. The main objective of the new scheme is therefore to extend the transitional period by providing support to companies to avoid redundancies as a result of the expiration of the salary compensation scheme. To ensure this, the new scheme will, among other things, ensure that provisions in collective agreements are suspended temporarily.

Compared to the existing division of labour scheme, the new temporary scheme introduces more flexibility for companies to organize the workload. This includes:

  • That reduced working hours under the labor division must be minimum 20 % and maximum 50 % calculated in average over a 4-week period

  • That after the company announces the initiation of the division of labour scheme, employees will have 24 hours to decide if they want to participate in the new scheme. Failure to provide a response will result in the employees being included automatically

  • That employees will have an increased income security, as the maximum rate for unemployment benefits will simultaneously be raised to up to kr. 23,000 for a full-time employee. In addition, employees that are not covered by unemployment funds will be given an extraordinary access to supplementary unemployment benefits

  • Companies can choose to make use of qualification courses fully or partly, in the periods where the employee is unemployed. Employees undergoing educational courses can, upon agreement, be exempted from the division of labour.

According to the new draft bill, an agreement on temporary division of labour can be made up until 31 December 2020. Companies can apply the new scheme for up to 4 months in total.

The new draft bill on division of labour is currently being processed and is scheduled to enter into force on 14 September 2020. We are following the developments closely and will revert with new developments.

 [Draft bill on access to implementation of a temporary division of labour scheme as part of the handling of covid-19 of 4 September 2020]

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Anders

Etgen Reitz

Partner

Søren

Hessellund Klausen

Partner

Kirsten

Astrup

Associate

Cecillie

Cathrine Groth Henriksen

Associate

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