Lønmodtagernes Garantifond (LG)

Lønmodtagernes Garantifond (LG)

Employer

As an employer, you pay contributions to LG via the financial contribution.

About LG

LG is the employees’ guarantee fund. LG ensures that your employees are paid their respective salary, holiday allowances, and other things if your company is bankrupt or is closed down in a similar manner.

Contributions to LG

In 2022, the contribution to LG is DKK 82.50 per full-time employee per quarter. Contributions to LG are paid together with a number of other ATP contributions that private companies have to pay for:

  • Unemployment

  • Illness

  • maternity/paternity leave.

Combined this is called Finansieringsbidrag (financing contribution). Go to ‘Finanseringsbidrag’ The financial contribution is collected via Samlet Betaling. Read more about Samlet Betaling

Restructuring

If your company has legally requested a suspension of payments order from a court of law, LG can also assist you with the payment of the net payroll costs to your employees during such a suspension. As an employer, you can work together with the restructuring agent to apply to LG for a loan to pay your employees. This is a loan that must be paid back to LG. If you are declared bankrupt or go into liquidation, your employees can claim any money you owe them from LG.

Read more

Bankruptcy, cessation or insolvency

If you as an employer goes bankrupt, ceases to operate as a company and are insolvent, LG can pay salary, etc. to your employees. In order for LG to be able to pay salary to your employees, your company must be domiciled in an EEA country, have activities in at least two EEA countries and be undergoing some form of insolvency process in the country you are domiciled in (as defined in Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008). In order for salaries, etc. to be paid, your employees must also:

  • usually have been performing their work in Denmark

  • not been posted to Denmark

  • not be illegally residing in Denmark

  • be employees.

Read more

Hent vejledning om LG's dækning ved konkurs, ophør eller død (PDF)

Collection of holiday pay from the transition year

If you have received a demand note for holiday pay from Lønmodtagernes Feriemidler, but not yet paid it, the claim is transferred to LG. You now owe the money to LG, and you can no longer make payments to Lønmodtagernes Feriemidler.

You can have an overview of what you own LG, in the self-service system:

See payment from LG (in Danish)

Legislation etc.

Here you can find information on legislation, how to complain and read about how we process personal data.

Legal guidance

How to complain

If you are not satisfied with how you have been treated, you are welcome to contact LG.

How we process personal data

In the following, you can learn more about what data Lønmodtagernes Garantifond processes, how we process the data and your rights in that connection.

Read more about the processing of your personal data

Updated 16.05.2022
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