Act On Employees ' Guarantee Fund

Original Language Title: Act On Employees' Guarantee Fund

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=121567

Ordinance to the law on employees ' guarantee fund 1)

Hereby promulgated law on employees ' guarantee fund referred to in article 6. lovbekendtgørelse nr. 1043 of 28. October 2005 with the changes imposed by section 7 of the Act No. 404 of 8. May 2006 and § 19 of the lov nr. 523 of 6. June 2007.

§ 1. Employees ' guarantee fund set up for the protection of workers claims on wages, etc. in the following cases:





1) By the employer's bankruptcy,

2) by employer's death, provided that a decision on insolvency proceedings or estate is connected by boudlæg without switch treatment,

3) at the company's termination, provided that it is established that the employer is unable to pay the claim, or

4) under the employer declared bankruptcy.





(2). The guarantee fund shall further ensure employees claim salaries, etc., in relation to companies operating in several Member States within the EU and EEA. This applies, however, only if the





1) employee usually performs or performed her work in Denmark and

2) the company may be deemed insolvent.





(3). A company shall be deemed to be in accordance with paragraph 2, nr. 2, for insolvent when there on the basis of the provisions laid down by law, regulation or administrative action of a Member State has submitted an application for the initiation of collective administration of estates as a result of the employer's insolvency, which implies that the employer fully or partially lose availability of its assets, the appointment of a liquidator or a person with a similar function, and that the authority which is competent pursuant to the said provisions ,





1) either has taken a decision on the opening of the proceedings

2) or established that the employer's undertaking or business has been definitively closed down and that the available assets are insufficient to warrant the opening of the proceedings.





§ 2. The guarantee includes claims on salary and other remuneration, damages for interruption of the employment relationship, remuneration in connection with the termination or interruption of the employment relationship as well as holiday pay. The guarantee does not, however, cover the part of the requirement that the employer should have included in the withholding tax or related to attachment of earnings orders after withholding section 73.

(2). In the in clause 1 (1) (8). 1-3, in the cases referred to in the guarantee presupposes that requirements are, or in the event of bankruptcy would be subject to the Bankruptcy Act, section 63, paragraph 2, 1. paragraph, or section 95, paragraph 1, no. 1-5 of the basic regulation. (2). The warranty includes in these cases also corresponding requirements can be supported on the Bankruptcy Act § 94, no. 2 If the Probate Court hearing the bankruptcy estate or estate, certifies that the estate is not currently able to meet the requirements.

(3). In the in clause 1 (1) (8). 3 cases referred to the Fund, which determines the time that takes the place of the due date, whether the claim can be attributed to preferential status after the Bankruptcy Act section 95, paragraph 1, no. 5, and shall be denied for payment pursuant to section 95 of the Bankruptcy Act, paragraph 2. The company has declared bankruptcy, is the date of the notification of a petition, if the company's termination due to insolvency occurs within 3 weeks after the effects of cessation of payments ceased after the Bankruptcy Act § § 16 (d) and 16 (e).

(4). In the event of a declared cessation of, see. section 1, paragraph 1, no. 4, includes the warranty requirements on wages, etc., payable during the cessation of payments. The guarantee includes claims that in the event of bankruptcy would be subject to the Bankruptcy Act, section 95, paragraph 1, no. 1-3. the Fund may refuse related disbursement equivalent to section 95 of the Bankruptcy Act, paragraph 2. The Fund pays no holiday pay of its payouts. Shall be borne by the employee vacation during the cessation of payments, the Fund may pay wages during vacation for this purpose. If the employee holds holiday with holiday pay, holiday pay shall be paid by the Fund alone, if not paid the necessary amount to the holiday account. Payment from the Fund may be made only if it is court-appointed supervision gives consent, see. the Bankruptcy Act, section 15 (1).

(5). In situations referred to in article 1, paragraph 2, and where the company has ceased, the Fund may cover claims to the same extent as mentioned in paragraphs 1 to 3.

(6). In situations referred to in article 1, paragraph 2, and where the company is not stopped, the Fund may cover claims to the same extent as referred to in paragraphs 1 and 4.

§ 3. In situations referred to in article 1 (1) (8). 1-3, can fund in each case a total of a maximum payment of $ 110,000. to each employee for the requirements referred to in section 94 Bankruptcy Act, no. 2, and section 95, paragraph 1, no. 1-3 and 5.

(2). In situations referred to in article 1 (1) (8). 4, the Fund may within a period of 18 months pay out up to 3 months of salary and other remuneration, without prejudice. section 2, paragraphs 1 and 4, to each employee, however, in total a maximum of 55000 USD When the Fund has initiated a payment period, which in the reference period of 18 months is not paid in addition to the limits laid down after 1. section in relation to the same employer. The reference period shall be counted from the notification of the suspension of payments, which has resulted in a payout from the Fund.

(3). Employment Minister can change the amounts referred to in paragraphs 1 and 2, taking into account wage developments.

(4). In situations referred to in article 1, paragraph 2, and where the company has ceased, the Fund can disburse to the same extent as under paragraph 1, without prejudice to article. (3).

(5). In situations referred to in article 1, paragraph 2, and where the company is not stopped, the Fund may pay to the same extent as under paragraph 2 of the basic regulation. (3).

§ 4. The Fund shall make payment, when the claim is reviewed and documented to the Fund. The Fund may make partial payment.

(2). Payment may take place only if the claim has become chargeable.

§ 5. Public authorities, employers and trade unions shall, on request, provide fund information relevant to decisions on the disbursement from the Fund.

(2). The Fund may use for the administration of this law to get terminal access to information in the register, see income. law on an income directory section 7.

(3). (2) includes all information about income, etc. to use for the calculation and payment to the employee of claims against a ceased and insolvent employer, including information about who carried out the alert, and the identity of the information concerns. There may be correlation and compilation of information to supplement and verify employee information in connection with the payment of claims notified to the Fund.

section 5 (a). the Fund shall exchange information with public authorities and courts in other Member States of the EU and the EEA, as well as those States ' guarantee institutions, when the information relevant to decisions about withdrawal and recovery.

§ 6. The claim is disputed by the employer or his live, or find the Fund that the demand is insufficiently substantiated, the Fund may refer the employee to seek the requirement established by the courts.

§ 7. Fund joins the employee's claims against the employer.

(2). Employment Minister lays down rules on the procedure and conditions for repayment of the guarantee funds, fee for insufficient payment, costs associated with the recovery and the possibilities for deferral and waiver of such claims against the employer and his or her stay.

(3). By refund to be fixed on the basis of paragraph 2, to provide for an annual interest rate equal to the reference rate laid down by price increases at 5.75% reference rate is used As the official lending rate, which the Central Bank has set out respectively per 1. January and 1. July that year. The interest shall be calculated from the time of payment, the repayment is made. The maximum duration for an installment scheme, to be determined on the basis of paragraphs 2, 3 years.

(4). There are udpantningsret in the case of debts in accordance with paragraph 1, including interest, fees and charges imposed by law or under rules issued pursuant to law.

(5). Unpaid employer's contribution after the until 1. January 1988 applicable rules with interest and the costs can be recovered by Lien in order.

§ 8. Transfer employee requirements referred to in § 2, the right to obtain payment from the Fund, unless the transfer is done to him or her employees ' or employers ' organization or to him or her by the State unemployment fund.

§ 9. Private employers that are registered for value added tax (VAT) law or law on the tax on payroll, etc., must pay contributions to the coverage of the Fund's expenses. The requirement to register does not apply to foreign companies and firms in the Faroe Islands and Greenland.

(2). Financial contribution shall be paid to the arbejdsmarkedets tillægspension, responsible for the collection and recovery of financial contribution from employers.

(3). The financial contribution may be collected along with other financial contributions of arbejdsmarkedets tillægspension collected from employers.

(4). The financial contribution to be levied in accordance with paragraph 2, and which is under 100 DKK in a payment period lapses. Be charged financial contributions along with other financial contributions from employers, see. paragraph 3, constitutes the contribution of 1. point the sum of the total financial contribution.

(5). Employees ' guarantee fund shall determine the amount of funding contributed to the financing of the Fund's expenses. In financing the contribution included administrative costs, including administrative costs for arbejdsmarkedets tillægspension.
(6). The funding contributed by arbejdsmarkedets tillægspension is calculated on the basis of the total contribution, which arbejdsmarkedets tillægspension has received from the employer in a prior period, whose length corresponds to the period for which payment of the financial contribution relates. The contribution represents a year that the Fund provided financial contributions, for each time the employer pays an amount equal to årsbidraget under section 15, paragraph 1, of the lov om arbejdsmarkedets tillægspension.

(7). Arbejdsmarkedets tillægspension can obtain the information from the tax authorities and other public authorities of the concerned employer, as are necessary to carry out the collection and recovery of guilty of financing contributions, interest rates and handling fee, including information on income and assets. For use in the calculation, collection and processing of financial contribution is that, where necessary, access to information in the labour market Supplementary Pension registers.

(8). Happens the payment of the financial contribution is not filed in due time, the employer shall pay interest on the funding contributed by 1 ½ per cent for each commenced month from the due date.

(9). Arbejdsmarkedets tillægspension has udpantningsret for financial contributions, interest rates and handling fee.

Paragraph 10. Decisions on financial bidragspligt and financial contributions, including calculating and charging, may, within a period of 4 weeks from the day when the decision is announced, be brought before the Appeals Board for arbejdsmarkedets tillægspension, see. section 28 of the Act on labour market Supplementary pension.

Paragraph 11. Employment Minister sets out after negotiation with Workers and guarantee fund arbejdsmarkedets tillægspension detailed rules on the calculation of periods and the payment of financial contributions, etc., including about bonds and the deadline for employer's deposit. It may by these rules provide that arbejdsmarkedets tillægspension can give deferred deposit, charge a handling fee upon request due to non-payment and after giving financial contributions, interest and any handling charges.

§ 10. Employment Minister lays down rules on





1) review of claims against the Fund, including the time limit for the submission of the notification,

2) what documentation must be accompanied by the notification,

3) Fund's treatment of the requirements and

4) disbursement from the Fund.





§ 11. The Fund is administered by arbejdsmarkedets tillægspension, see. Chapter VII of Act on arbejdsmarkedets tillægspension.

§ 12. Have a wage earner Fund false information or omission of circumstances that are important for the payment from the Fund, the amount that is received, wrongly, be recovered by the employee.

§ 12 a. Unpaid employer's contribution after the until 1. January 1988 applicable rules can with interest and costs recovered by arrears collection authority. Arrears collection authority may recover the amount owed by deduction of wages, etc. with the person concerned in accordance with the rules on the collection of personal taxes in kildeskatteloven.

(2). Employment, the Minister may, in consultation with the tax Minister lay down detailed rules concerning the procedure in connection with lønindeholdelsen, including on penalty of fines for violation of the rules.

§ 12 b. Arrears collection authority may cancel the requirement under section 12 (a) in accordance with the rules in Recovery Act.

§ 13. Unless a higher penalty is inflicted upon the rest of the legislation, is punishable by a fine anyone who fails to comply with a request from the Fund of information or make false or misleading information, see. § 5.

(2). The infringement is committed by a corporation, cooperative or similar may be subject to the company as such fine responsibility.

§ 14. The law applies in cases where the treatment of employer's bo is considered as begun, or when the company ceases the 1. April 1972 or later.




Paragraphs 2 and 3. (Transitional provisions omitted).



§ 15. The law does not apply to the Faroe Islands and Greenland but may by Royal. device is put into force for Greenland of the variances, as the special Greenlandic conditions warrant. 2)




Act No. 880 of 23. December 1987, which amends section 9 and section 13, paragraph 1, includes the following entry-into-force provision:



§ 2

(1). The law shall enter into force on the 1. January 1988.




Paragraphs 2 and 3. (Transitional provisions are omitted).






Act No. 380 of 6. June 1991, adding § 7 (2) and section 12 (a), includes the following entry-into-force provision:



section 33

The law shall enter into force upon the decree in the Official Gazette and shall also apply to claims due before the Act's entry into force.




Act No. 385 of 22. May 1996, which amends section 1, nr. 2, includes the following entry-into-force provision:



§ 15

(1). The law shall enter into force on the 1. January 1997.

(2). Is the death occurred before the entry into force of the Act, or an application for the change of the date of entry into force of the Act, before the undivided bo used the existing rules.




Act No. 1080 of 29. December 1999, which amends section 9, includes the following entry-into-force provision:



§ 2

(1). The law shall enter into force on the 1. January 2000.

(2). In 2000 offsetting of contributions to employees ' guarantee fund pursuant to section 9, paragraph 1, for the first time by offsetting in compensation pursuant to section 17 a of the lov om arbejdsmarkedets tillægspension ATP on the basis of paid-up contributions during the period 23. February-22. May 2000.

(3). The funds, which the Fund has at its disposal by the Act's entry into force, shall accrue to the Fund.




Act No. 249 of 8. May 2002, which amends section 9, includes the following entry-into-force provision:



§ 6

(1). The law shall enter into force on the day after publication in the Official Gazette. 3)

(2). The law shall take effect from the 1. January 2002 and applies the first time for the financial contributions levied on the basis of ATP-contributions received after the 22. February 2002.




Act No. 1032 of 17. December 2002, which amends section 9, includes the following entry-into-force provision:



§ 7

(1). The law shall enter into force on the 1. January 2003 and have effect for the first time for the compensation amount should have been paid on the basis of ATP-contributions received in the period 23. February – 22. May 2003.

(2). ATP's Appeals Board may, in accordance with the existing rules deal with matters relating to the calculation and payment of compensation under section 17 (a).




Act No. 322 of 18. in May 2005, which modifies article 1, 2, 3 and 7, paragraph 5 (a) and insert the footnote to the title of the Act, includes the following entry-into-force provision:



§ 2

The law will enter into force on 7. October 2005 and has effect for cases where the due date or the date on which in accordance with the Fund's provision in lieu of deadline day, occurring after the entry into force of the Act.




Act No. 430 of 6. June 2005, which modifies section 12 (a), includes the following entry-into-force provisions:



section 70

(1). The law shall enter into force on the day after publication in the Official Gazette. 4)

(2). The law shall take effect from the 1. November 2005, see. However, paragraph 3.

(3). Decisions about recovery in the 1. October 2005 the appeal was lodged to the existing administrative review bodies, released for treatment in the national tax Tribunal on 1. on January 1, 2006, if the existing review bodies has not finalised its complaint before this date.




Act No. 431 of 6. June 2005, which inserts section 12 (b), contains the following provisions: entry into force



§ 85

(1). The law shall enter into force on the 1. November 2005.




Act No. 404 of 8. May 2006 amending various laws (consequential amendments as a result of the Act on the income register), which modifies Law § 2 and § 5, includes the following entry-into-force provisions:



§ 23

(1). ---.

(2). sections 2-6, § 7, nr. 2, sections 8-13, § 17, nr. 24, § § 18-21 and section 22, no. 1, 2 and 4 shall enter into force on the 1. June 2006.

(3). Tax Minister shall determine the time of the entry into force of section 7, nr. 1, 5) § 14, § 15, § 16, § 17, nr. 1-23, and section 22, no. 3. Including the tax Minister can set different effective dates for various companies, etc.




Act No. 523 of 6. June 2007 amending various legal provisions on limitation of claims, etc. (Changes as a result of a new law on limitation of claims, waiver of time limits complaints by certain purchases of goods Act, etc.), which modifies article 9, includes the following entry-into-force provisions:



section 47

The law shall enter into force on the 1. January 2008.

section 48

(1). The law applies also on earlier founded claims, which is not before the commencement date is out of date according to the existing rules. The limitation period shall occur no sooner than the 1. January 2011 unless the claim before that date would be obsolete as well after the hitherto applicable provisions which, according to the rules applicable after the date of entry into force of the Act, see. However, paragraph 7. In the latter case, used the latest juncture for the forældelsens entry.

(2). Interruption of the limitation period, which occurred before the entry into force of the law, continues to have effect as disruption, even if it is not done on the after the entry into force of the Act prescribed way.
(3). ---.

(4). ---.

(5). ---.

(6). ---.

(7). ---.

(8). ---.

section 49

(1). The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). ---.

(3). sections 1, 2, 5-9, 11, 13-15, 19, 21, 28, 44 and 45 may by Royal Decree in whole or in part be put into force for Greenland of the variances, as the special Greenlandic conditions warrant.
The Ministry of employment, the 15. October 2008 Claus Hjort Frederiksen/Lise Fangel Official notes 1) Act contains provisions transposing a European Parliament and Council Directive 2002/74/EC of 23. September 2002 amending Council Directive 80/987/EEC on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer (Official Journal of the European communities 2002 nr. L 270, p. 10).

2) Decree No. 321 of 3. July 1980 on entry into force for Greenland of the law on employees ' guarantee fund, etc.

3) Act was promulgated in the Official Gazette 10. May 2002

4) Act was promulgated in the Official Gazette 7. June 2005.

5) Clause was put into effect by Executive Order No. 1534 by 14. December 2006 and Decree No. 1396 of 12. December 2007.