Questions and Answers
My employer has been declared bankrupt/is insolvent
What do I need to do?
You need to file your claims on a claims form.
When can LG help me?
LG can help you if, for example, you have pay and holiday pay owing to you and your employer has been declared bankrupt or has ceased trading and is insolvent.
What does LG cover?
What does LG cover?
LG will typically cover your salary, holiday, and pension. For more information, see: What does LG cover?
Will LG cover my travel expenses to and from work?
No. Expenses that you would normally incur as part of your job are not covered by LG.
Claims form
Has LG received my claims form?
Within one week of receiving your claims form, LG will send you a letter acknowledging receipt. This letter also tells you when you can expect to receive any payment.
Is there a time limit for filing a claim with LG?
Yes, LG normally processes claims received within 4 months of an employer's bankruptcy and 6 months after the employer ceased trading.
If we receive your claims form after the deadline, we will only be able to make any exemption from the time-limit requirement and process your claim in very special cases.
When filing a claim for holiday pay with LG you must do so as soon as possible after you become aware that your employer is bankrupt or has ceased trading.
Please calculate all your claims before sending in the claims form to LG.
How do I claim any salary etc. that I am due?
Fill out this form and send it to us.
For more information, see: File a claim with LG
Payment
What can LG compensate you for?
For information about eligible claims, see “What does LG cover?”
Will LG cover my mileage allowance?
No. LG does not cover expenses incurred as part of your job.
Where does LG deposit the money to?
Holiday pay will be deposited to FerieKonto. Pay etc. will be deposited to your bank account. Pension contributions will be paid directly into your pension scheme. If you have authorised your trade union or a solicitor to receive money on your behalf, the payment will be made to them.
Under what conditions will I obtain my salary etc. paid out by LG?
You will not receive any money until the bankruptcy has been fully confirmed. The fact that a bankruptcy petition has been filed is not in itself sufficient. For more information, see: Conditions
Where will I receive the money?
We pay your salary into your Danish bank account or by cheque. Your holiday pay is paid into FerieKonto. Pension contributions are paid into your pension scheme. For more information, see: Payment
New employment
Should I apply for new employment during the employment termination notice period?
Yes. If your employer does not require you to attend work you are under obligation to limit any loss of earnings during the notice period.
Will LG make a deduction from my payout if I get another job?
Yes. Income from other employment during the notice period is normally deducted from the compensation we pay for the notice period. Note however that special rules apply to salaried employees. Paying your salary: conditions
Holiday
Can LG assign my holiday to my notice period?
Yes. For more information, see Holidays during the notice period.
Tax
Will LG deduct tax from my payout?
Yes, we will deduct tax from the compensation we pay you. From a tax-authority perspective, your status is the same as if your employer had paid the tax.
Other
Can I file a complaint against an LG decision?
Yes. But there is no appeals board. If you are dissatisfied, you can request that LG reconsiders your claim. If no remedy is found, you can sue LG in the civil courts to have our decision overturned.