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Regular-article-logo Tuesday, 07 May 2024

Pay cushion to stop sacking: Denmark

The measures include shutting borders, closing schools and universities, and sending home all public sector workers with non-critical jobs

Reuters Copenhagen Published 15.03.20, 09:59 PM
A tent serves as a drive-through coronavirus testing facility at Aarhus University Hospital in Denmark.

A tent serves as a drive-through coronavirus testing facility at Aarhus University Hospital in Denmark. (AP)

Denmark’s government told private companies struggling with drastic measures to curb the spread of the novel coronavirus that it would cover 75 per cent of employees’ salaries if they promised not to cut staff.

Under the three-month aid period that will last until June 9, the state offers to pay 75 per cent of employees’ salaries at a maximum of 23,000 Danish crowns (Rs 2.5 lakh) per month, while the companies pay the remaining 25 per cent.

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“If there’s a big drop in activity, and production is halted, we understand the need to send home employees. But we ask you: Don’t fire them,” Prime Minister Mette Frederiksen told a news conference on Sunday.

Employees will be obliged to take five days of mandatory vacation or time off from work, she added.

The offer is one of several economic aid packages by the government to help companies and employees cushion the effect of tough measures to curb the spread of the coronavirus.

The measures include shutting borders, closing schools and universities, and sending home all public sector workers with non-critical jobs.

One of the wealthiest countries in the world, Denmark has sound public finances with low government debt partly as a result of a slew of economic reforms over the last two decades.

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