The purpose of this article is to gather the most essential actions taken by the Danish government i.e. the case of emergency legislation etc. Virtus Law does, however, encourage you to make direct contact in case you are seeking further clarification regarding your personal situation or the circumstances related to your business in particular.
In order to contain the spread of the infection, a number of injunctions have been issued. The said injunctions are of major importance to society and the economic as a whole.
Freedom of assembly
- In respect of COVID-19 the government in Denmark has chosen to intervene in the freedom of assembly by, initially, banning assemblies of more than ten people with effect from March 18th, 2020. It is currently unclear whether further restrictions await us.
A number of business must close
- A number of business have been required to immediately initiate temporary closure, including shopping centres, restaurants, bars, nightclubs, gyms, inside sports,massage parlours, hairdressing- as well as tanning / tattoo-saloons, hookah cafes and other businesses where people come into close contact.
Grocery stores and pharmacies are not subject to the aforementioned injunction.
This action has majoreconomic consequences for the self-employed and the Danish business community as a whole, which is why relief packages andeconomic aidhave been issued by the government to create the best possible conditions and hopefully keep as many businesses as possible afloat during this difficult time.
More specifically, legislation regarding the legal position of employers as well as employees in connection with the compensation of companies during covid-19 has been issued. This legislation was adopted by the Danish Parliament on March 24th, 2020. This article will not deal with the details of the law, however, we are ready to further advise you upon inquiry.
For now, the following initiatives have been implemented in Denmark:
Compensation for salaries:
- Your company may be temporarily compensated for salary expenses for employees who have been sent home without duties.
In order to apply for said salary compensation, the company must meet the following criteria:
- At least 30% of the employees or more than 50 employees are sent home without duties.
- The company does not dismiss employees while receiving salary compensation.
Compensation for business’ that had been closed the by Government
- Business that has been closed by the Government can receive 100% compensation for certain fixed cost such as rent, lease fee etc.
Compensation for fixed expenses
All Danish business may receive temporary partial compensation for fixed expenses if:
- The business expects a reduction in revenues of at least 40%
- Have fixed expenses of at least DKK 25,000 on a monthly basis.
The above-mentioned possibilities to get compensation are a working process and more could be added.
Contracts and force majeure
One cannot avoid the issues connected with the interpretation of a legalnone-fulfillment of contracts due to the pandemic.
Whether or not a party can be held in breach of the contract based on none-fulfillment of a contract or delay in the deliverance of a contractual obligation will be determined on the specific nature of the contract.
However, a none-fulfillment of a contract due to for example the closure of a business will probably enable a party to terminate the contract, but not to claim compensation as the pandemic will most likely be deemed as force majeure.