As an employer, you pay contributions to LG via the financial contribution.
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 2021, the contribution to LG is DKK 130.00 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:
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.
Apply for loans when in the midst of restructuring
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
Hent vejledning om LG's dækning ved konkurs, ophør eller død (PDF)
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