- Response to COVID-19
This applies to companies undergoing major job reductions, affecting at least 50% of the workers at a workplace with at least 100 employees.
Workplaces with at least 20 employees can undergo a trial period.
The state provides dedicated funds to each 'employment region' for the 'warning pool'. There are five employment regions in Denmark, administered by the Regional Employment Centres. It is up to the regions to manage this funding. In practice, the initiative works in the following way: a firm (no restrictions in terms of size or other criteria) undergoing mass redundancies must make a written application for funding from the warning pool. This is done in cooperation with the local job centre.
The application shall, among other aspects, specify how the company proposes to use the funding. Applications are then sent to the Regional Employment Centre for their assessment. If the application is successful, the firm and the local job centre are jointly responsible for ensuring that the initiatives are accomplished in accordance with the description in the application.
The firm must complete its application for funds in conjunction with the local job centre. Union representatives are involved in negotiating an arrangement with the job centre and employers. Applications are sent to the Regional Employment Centres for their assessment.
Project activities can involve:
- courses in job searching for up to two weeks within the notice period;
- skills' development, including further education for the employees for up to eight weeks within the notice period;
- the preparation of job plans for the dismissed workers; and
- the establishment and operation of an office at the workplace where warned or dismissed workers can seek help and assistance.
The warning pool is divided into 'Ordinary warning pools and' and 'Supplementary warning pools'.
'Ordinary warning pools' can be used to establish a temporary employment service office in the workplace regardless of the size of the firm. Caseworkers from the PES, based at the service office, deliver individual job search assistance and/or help employees build a job strategy. Counselling sessions are provided during the notice period in preparation for a dismissal.
'Supplementary warning pools' aim at supporting displaced workers after their notice period if they are still unemployed and receiving unemployment insurance benefit. Grants for skills upgrading are granted for skills in current or future demand or whenever an employer wants to hire an unemployed individual without a wage subsidy after a completed skills upgrading course.
- National funds
National government provides funds
Regional employment centres process the application.
Public employment services
Regional employment centres
Local job centre
According to the state budget, in January 2020, the warning pool was raised from the previous years to DKK 6.3 million (€0.85 million). During the COVID-19 crisis the pool has been further raised due to the impact of the following significant economic downturn on the companies. In March 2020, when lockdown took place in Denmark in order to avoid dissemination of the virus, the warning pool was extended with DKK 10 million (€1.34 million), thus amounting to DKK 16.3 milion (€2.2 million) in total, ready to mitigate the effects of closures and redundancies.
In September 2009, when the economic crisis peaked in Denmark, DKK 22 million (about €3 million) out of DKK 28 million (about €3.8 million) available for the warning pool were spent on providing support in connection with mass redundancies. The economic crisis brought the warning pool into public knowledge. In the last years the warning pool has mainly been used in cases of collective redundancies.
The warning pool is very useful when comprehensive restructuring processes take place, not the least because more jobs are at stake. Since 2012 extra funds have been given by the government in especially large cases. The latest large case took place in March 2017 where DKK 3 million (€ 400,000) were used to support 400 redundant workers at Siemens Wind Power in Jutland. As of beginning of 2020, there are not newer data to suggest that this amount has been outscored.
Data on individual amounts to companies during the COVID-19 crisis are not yet available (autumn 2020).
None in particular. There are no recent reports on the subject. The warning pool is generally accepted as effective.