Your employer declared bankruptcy in Denmark - what to do?⚠️

Company bankruptcy is a difficult situation - lack of payouts and uncertainty about tomorrow can spend your sleep 😟. But the good news is that in Denmark employees are not left alone! 🇩🇰

Thanks to Lønmodtagernes Garantifond (LG) - Employee Guarantee Fund you can get your money back and ensure your financial security.

🔍 In this article you will learn:

✅ which means so-called. „competition” (Company bankruptcy),
✅ what benefits you can get from LG,
✅ what deadlines apply,
✅ and how to apply so you don't miss any important dates.

😟 What does the bankruptcy of a company mean?

Competition (bankruptcy) means that the company, no more money to pay their bills - and this situation is not just temporary.

What's happening:

• 📌 Skifteretten (Danish bankruptcy court) officially declares the company bankrupt (virksomhed går contest),
• 📌 Designated is curator - which is the equivalent of the Polish trustee in bankruptcy.
  He is the one who takes over the company's assets, manages them and looks after the interests of any unpaid individuals or companies. The previous owners or executives cease to have any influence on the company,
• 📌 From this point on superintendent decides everything - The sale of assets, terminations and the order of payments.

➡️ For an employee, this usually means:

• no further payments from the company,
• Possible arrears of other benefits, e.g., feriepenge, etc.
• loss of jobs in the company,
• The need to report claims to the relevant institutions.

💰 What can you get back from LG?

In Denmark, the employee has strong legal protection.
Lønmodtagernes Garantifond (LG) pays out the funds due if the company goes bankrupt.

With LG, you can recover:

• ✅ løn - back pay,
• ✅ feriepenge - vacation money,
• ✅ pension - missing pension contributions,
• ✅ opsigelsesløn - pay for the notice period,
• ✅ other benefits provided for in the contract, e.g. SH, Fritvalgssaldo

📅 You can get your salary back for the period up to 6 months back, counting from the date on which the bankruptcy petition was filed.

⚠️ Payout limit: max DKK 160,000 per employee.

🕓 Important dates

• ⏳ 4 months - That's how much you have to file a claim with LG from the date of bankruptcy,
• ⏳ 35 working days - LG's average application processing time.

📝 How to submit an application to the LG.

1. competition notice

When a company is in the process of bankruptcy, employees get information from the employer or directly from the curator.

Here you can check if your employer has declared bankruptcy https://www.statstidende.dk/

2. submission of claims to LG

1. Log in through MitID on the site-> borger.dk,
2. Fill out the form (selvbetjening) and attach:

• employment contract,
• Pay slips from the last 6 months,
• Hourly cards (for unpaid hours),
• termination,
• other documents supporting claims.

3 LG decision and payment

If everything is correct - the payout goes directly to your -> NemKonto.

LG analyzes the documents and contacts you if something is missing.

⚠️Wykluczenia and restrictions

❌ If you were the owner/shareholder of the company(does not apply to employee shares) or a member of the company's senior management, or you were also closely related to the owner of the (e.g., immediate family husband, wife) - you may be excluded from the LG support system,

❌ Missing the deadline (4 months) = no money from LG,

❌ Lack of documents = delay or rejection of the case,

🆘 Where to look for help?

• 🌐 borger.dk - the main source of information and forms,
• 👷 Fagforening - if you are a member then the union will help fill out the application,
• 💼 A-kasse - Financial support after job loss,
• ⚖️ Superintendent (advokat) - conducts bankruptcy proceedings and answers creditors' questions.

👣 What next after reporting to LG?

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🔎 1. Looking for a new job

• As soon as you lose your job, it's a good idea to register online with the unemployment office ->Jobcenter.
• Registration means that you are actively looking for a job and can benefit from the support of the labor office.
• Jobcenter can also help you find courses, training or job opportunities.

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💼 2. A-kasse (unemployment benefit - dagpenge)

• If you are a member of A-kasse and you meet the conditions (e.g., adequate number of hours worked), you can get a dagpenge,
• This is an allowance that is paid monthly and gives you financial stability until you find a new job,
• Important: report to your A-kasse immediately after losing your job so that you do not lose your right to benefits.
• Read more about a kasse here: https://your-adviser.dk/a-kasse/.

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💶 3. Kontanthjælp (social allowance).

• If you are not a member of A-kasse, you can apply for a kontanthjælp In your municipality (kommune),
• Kontanthjælp is social assistance for people with no income, but is granted after verification of financial situation (e.g. savings, assets, family situation),
• To receive it, you also need to be registered with the Jobcenter As a job seeker.

✅ Summary

Employer bankruptcy (competition) in Denmark does not necessarily mean losing money.
Thanks to Lønmodtagernes Garantifond (LG) you can recover back pay, feriepenge, pension and opsigelsesløn.

Key steps:
👉 act fast - you have 4 months from the declaration of bankruptcy of the company
👉 collect all documents,
👉 apply online at borger.dk,
👉 remember A-kasse As an additional safeguard.

💡 Your job in Denmark is protected - even if the company goes bankrupt, Your money is still recoverable!

Not sure where to start? How to go about filling out an application?

Recovering money when a company has declared bankruptcy, for example (LG)

📞 Call us: +45 35 13 13 10 (Mon-Fri, 8:00am-6:00pm)
📧 Write: helpy@your-adviser.dk