In Denmark, there is a fund (LG = Employees' Guarantee Fund) which pays the missing wages to workers in companies that have gone bankrupt. You can report your missing salary to the LG fund yourself, but it can be a complicated process. That is why your trade union will help you.
In the event of a bankruptcy, you should be aware of the following:
In the event of a bankruptcy, your employer is no longer obliged to pay your salary, pension, holiday pay etc. therefore you should stop working and contact your union.
This also applies if you have a strong suspicion that the company is about to go bankrupt. like if your employer is no longer able to pay your salary.
In the event of a bankruptcy, a trustee is appointed - it is a lawyer who is appointed by the district court to manage the bankruptcy estate. The curator's task is to run the company and ensure that the company's creditors get as much money as possible to cover the requirements they have in the company.
At the bankruptcy, the trustee has a maximum of 14 days to decide whether he wants some employees to work for the estate or whether they are terminated. After the 14 days, the curator often chooses to terminate the employees - or most employees. The curator can also terminate immediately.
If you are unsure whether you are terminated, ask the curator directly or contact your union
If the curator (the lawyer) wants you to work for the estate, it is very important that there is a guarantee for your salary, holiday money, etc. If you work for the estate, LG does not cover your requirements. It is not good enough if the curator says that the estate pays wages, etc. Always contact your union before you start working for the estate
You need to gather documentation for your employment and the requirements you have. You will always need:
Other relevant documentation:
If you are a member of 3F, we will apply to the LG fund for you. If you are not a member, you can do it yourself, via this link:
LG covers claims for salary, pension, and similar entitlements for up to six months prior to the "deadline," which is typically the date the company was declared bankrupt. However, LG does not cover certain expenses, such as travel costs or reimbursements for items you purchased on behalf of your employer.
Holiday allowance and s/h is covered according to the rules of the Holiday Law. (max. 3 years back).
For the companies covered by agreements with a holiday guarantee, the claim for holiday allowance and S/H will be notified to the guarantee scheme. It could be companies who are members of the employer organization DI.
If there is a guarantee plan in place, the notification to LG will not include holiday pay or special holiday allowance (SH). If the company is not covered by a recognized holiday guarantee, the claims for LG will be reported, and the amounts will be paid into a holiday account.
3F have a team that works with bankruptcies and LG cases, which helps the union's members through the process. They are experts in this type of case, and work hard to get as much money home to the members as possible.
The team is primarily:
Ebbe Dalgaard - Tel. 889 22667 Mail: ebbe.dalgaard@3f.dk
Jette Nordentoft - Tel. 889 28979 Mail: jette.nordentoft@3f.dk
They are best met on Tuesday morning and Thursday afternoon or by appointment.
Unfortunately, we have many bankruptcy cases, so you have to expect that it can take up to 4 weeks before we have calculated your requirements and created the review (digital).
When the case is ready on our part, we will send you an email with the message that you should go to LG via www.borger.dk (You will also receive an email from borger.dk)
The processing time varies on a case -by -case basis.
When you receive an email notifying you that your review is ready, log in via the web using MitID and locate your case with LG. Once inside the case, you'll need to enter your personal information, such as your name, address, and phone number.
Next, review the case, then click "Send" and "To Overview."
Once you're back on the overview page, you will receive a confirmation that the case has been submitted to LG.
After that, it’s just a matter of waiting.
On LG's website you can see how long the processing time they have at the given time. You have to expect that it may take longer than what they write, as the time processing time is constantly changing after how many cases they receive. Usually their expedition time is approx. 2 months from the date you have approved the notification. You hear from us when LG has dealt with the case and either paid or asked in -depth questions.
If there is a lack of documentation in the case or there are other ambiguities, the case processing will take longer. Each time LG asks for additional documentation or asks questions, it will extend the expedition time by approx. 5 weeks.
All in all, you need to prepare for approx. 3 months before payment is made in the case.
The salary is sent to us. We check if the payment is in line with the requirements we have reported and transfer the money to your NemKonto as soon as possible
The pension will be put into your pension plan. From the case is dispatched at LG, it will take about a week before we have received information about what requirements they have approved and the money is in our account.