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Consolidation Act on Benefits in the event of Illness or Childbirth

2 March 2001

An Act to consolidate the Act on Benefits in the event of Illness or Childbirth, cf. Consolidation Act No. 147 of 2 March 2000 as amended by Act No. 1253 of 20 December 2000 (section 8), Act No. 1304 of 20 December 2000, Act No. 1305 of 20 December 2000 and Act No. 1308 of 20 December 2000. The text of this Consolidation Act as set out below will not be fully effective until 1 January 2002, cf. Act No. 1304 of 20 December 2000.

Chapter I

Part 1

General conditions

1(1) Benefits under this Act shall be payable in the event of illness, including personal injury, maternity and adoption.

(2) Benefits shall be payable by

(i) the employer to any employee who is absent from work due to illness for two weeks from the first full day of such absence;

(ii) the employer to any employee who is absent from work for antenatal care; and

(iii) by the local authority in all other cases.

(3) The local authority shall pay benefits to persons employed under flexible working arrangements, cf. Part 7 of the Act on an Active Social Policy, from the first full day of absence from work.

2(1) The payment of benefits shall be based on wage earnings and other earnings in lieu of wage earnings, cf. subsection (2) hereof, and income generated from self-employment.

(2) The Minister for Social Affairs is authorised to lay down rules specifying

(i) the amounts to be included in wage earnings and income from self-employment respectively;

(ii) the extent to which persons whose income is not taxable in Denmark are eligible for benefits under this Act; and

(iii) that persons who are eligible for benefits in another country are not entitled to receive benefits in Denmark.

Chapter II

Benefits payable to employees during illness

Part 2

Employment requirements

3(1) An employee who does not receive full pay when he/she is ill is entitled to benefits payable by the employer if

(i) he/she has been in the employ of that employer for the past 8 weeks prior to the absence from work; and

(ii) he/she has been working for the said employer for not less than 74 hours during that period.

(2) Provided always that, if the employee has previously been employed with the current employer, and if the aggregate period of employment with that employer amounts to 74 hours or more during the past 8 weeks, the requirement set out in subsection (1)(i) hereof shall not apply.

(3) The entitlement to benefits from the employer shall apply whether or not the employment is terminated within the first 2 weeks from the first day of absence.

4(1) The following employees are eligible for benefits payable by the local authority:

(i) employees who have been attached to the labour market for the past 13 weeks before the onset of illness, who have been working for not less than 120 hours during that period, and who are not entitled to receive benefits from the employer in respect of the same period and employment relationship; or

(ii) employees who would, but for the incapacity for work, have been eligible for unemployment benefit or a benefit in lieu thereof, cf. the Act on an Active Labour Market Policy or the Act on Adult Vocational Training;

(iii) employees who have completed a vocational training programme of not less than 18 months' duration within the last month;

(iv) employees who are paid trainees in a training or education governed by or pursuant to statute.

(2) The eligibility for benefits from the local authority shall accrue from the first full day of absence or from the first day of absence following the termination of the eligibility for benefits from the employer.

(3) The Minister for Social Affairs is authorised to lay down rules governing the payment of benefits by the employer and the local authority respectively, including benefits payable to

(i) reinstated employees, cf. section 3(2) above, and new employees in their current employment; and

(ii) persons having received compensation for loss of earnings under the Social Assistance Act; or

(iii) persons having received benefits under the Act on Childcare Leave.

5(1) Benefits shall be payable to an employee who is fully incapable of work due to illness. Payment of benefits shall cease when the employee recovers his/her working capacity, whether or not the employee fails to return to work or report fit for duty.

(2) The Minister for Social Affairs is authorised to lay down rules governing the entitlement to

(i) reduced benefits in case of partial incapacity; and

(ii) benefits when attending vocational training of limited duration.

Part 3

Notification and evidence

6(1) Illness shall be notified to the employer as soon as possible.

(2) Illness shall be notified to the local authority within a week of the first day of absence or, where the employer has paid benefits, within a week of the date on which the payment of such benefits ceased.

7(1) The employer may require the employee to provide evidence within a reasonable time to the effect that his/her absence is due to illness, by way of a written declaration or otherwise.

(2) Where it is deemed expedient, the employer or the local authority may require the employee to submit a medical report. Such report shall be submitted in the form approved by the Social Appeals Board and shall be paid for by the employer or the local authority, as the case may be.

(3) The Minister for Social Affairs is authorised to lay down rules governing notification and evidence in respect of absence due to illness as well as claims for benefits.

Part 4

Lapse of benefits

8(1) The eligibility for benefits will lapse

(i) where the claimant refuses to be admitted to hospital or to undergo any necessary medical treatment, contrary to a doctor's recommendation, or to attend any necessary retraining activities for the purpose of recovering his/her working capacity against the advice of the doctor or the local authority;

(ii) where the claimant delays his/her recovery by his/her own conduct; or

(iii) where the claimant without due cause fails to comply with the follow-up measures taken by the local authority, cf. section 24(1)-(3) below.

(2) The eligibility for benefits shall also lapse during any period of the claimant's failure to notify or provide evidence of the absence, cf. sections 6, 7 and 10(4). This shall not apply where such failure is based on a valid excuse, or in the case of benefits paid by the employer, where the employer fails to object as soon as possible to late notification or to the form of or any delay in the provision of such evidence.

(3) The Minister for Social Affairs is authorised to lay down rules governing payment of benefits from the local authority in case of late or no provision of evidence on specific grounds.

(4) The eligibility for benefits from the employer shall lapse

(i) where the employee has contracted the disease intentionally or by gross negligence;

(ii) where the employee has failed to disclose medical information of material importance to the employment, e.g. to the employer's possibility of having the benefits paid to the employee reimbursed, cf. section 28 below; and

(iii) during a strike or lock-out.

(5) The eligibility for benefits from an employer shall lapse where the employee has contracted the disease in service covered by the Act on Injured Conscripts etc.

Part 5

Amount of benefits

9(1) Benefits shall be calculated on the basis of the hourly pay to which the employee would have been entitled during absence because of illness subject to payment of social security contributions. If the amount of income is not available for calculation of benefits in a given case, the average earnings within the past 4 weeks before the onset of the illness shall be used instead. Benefits from the employer shall only be payable on the basis of earnings from the employer in question.

(2) Benefits under subsection (1) hereof shall not exceed DKK 2,546 divided by the number of hours normally worked per week under the collective agreement. The amount shall be adjusted on 1 January every year by the rate adjustment percentage, cf. the Act on a Rate Adjustment Percentage. The amount shall be rounded to the nearest full amount. The adjustment shall be effective from the Monday nearest to the date of adjustment. The Minister for Social Affairs shall issue orders specifying the amounts adjusted, including the number of hours under the first sentence hereof.

(3) Benefits to an unemployed member of a recognised unemployment benefit fund shall amount to the amount of benefits the claimant would have received where he/she had not been ill. For persons engaged in activities under the Act on an Active Labour Market Policy or the Act on Adult Vocational Training and receiving benefits in lieu of unemployment benefits, the amount of benefits received shall equal the current earnings, not exceeding the maximum benefits.

(4) Benefits for persons in flexible working arrangements, cf. Part 7 of the Act on an Active Social Policy, shall be calculated on the basis of the number of hours worked times the hourly pay on which the local subsidy for the employer is calculated.

(5) The aggregate amount of benefits paid per week by the local authority, other than benefits based on job rotation, cf. subsection (7) hereof, shall not exceed the amount set out in subsection (2) hereof.

(6) If the remuneration paid by the employer during illness exceeds the benefits calculated under subsections (1)-(5) hereof, the payment of benefits from the employer will be discontinued. Where the remuneration paid is less than the benefits so calculated, the deficiency shall be payable as a supplement.

(7) The Minister for Social Affairs is authorised to lay down rules governing -

(i) the cases in which the average earnings within the past 4 weeks shall be applicable, cf. subsection (1) hereof;

(ii) the cases in which calculation methods other than the method stipulated in paragraph (i) hereof; and

(iii) the derogation in relation to employees working staggered hours from the rules set out in subsections (1)-(3).

Chapter III

Benefits for self-employed persons during illness

Part 6

10(1) Self-employed persons are eligible for benefits from the local authority from the first day of absence after 2 weeks of illness. Where voluntary insurance under section 20 below has been arranged, the individual is eligible for benefits from the third day of absence from the onset of illness. Where an increased premium is paid, cf. section 29 below, eligibility shall accrue from the first day of absence.

(2) Eligibility for benefits shall be subject to the recipient having within the past 12 months carried on a significant amount of business as a self-employed person for not less than 6 months, including the month immediately preceding the period of absence.

(3) Benefits shall be calculated for one week at a time and shall not exceed the amount set out in section 9(2) above for any one week. Where a voluntary insurance under section 20 below has been arranged, the benefits shall amount to not less than 2/3 of the amount set out in section 9(2).

(4) Any case of illness shall be notified to the local authority within one week after 2 weeks' illness. Any person having secured the entitlement to benefits from the first or the third day of absence shall give notice of the illness within one week of accrual.

(5) The Minister for Social Affairs is authorised to lay down rules governing the benefits calculation procedure based on income generated from self-employment, including the use of income figures from the tax authorities and the impact of any prior employment.

(6) The provisions of sections 5, 7(2) and (3) and 8(1)-(3) shall apply correspondingly to the payment of benefits under this Part.

Chapter IV

Benefits payable to employees and self-employed persons in respect of pregnancy, maternity and adoption

Part 7

Conditions for payment of benefits

11(1) The local authority shall pay benefits during absence from work due to pregnancy, maternity and adoption.

(2) The employer shall pay benefits to employees who are absent from work for antenatal care. This provision shall not apply to the extent that any obligation for the employer to pay benefits or any other adequate amount is provided for by collective agreement, corresponding as a minimum to the provisions of Council Directive 92/85 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding.

12(1) A woman is eligible for benefits prior to the 4-week period preceding the expected date of birth.

(2) The woman is eligible for benefits prior to the 4-week period before childbirth where

(i) it appears from a medical assessment that the pregnancy is taking an abnormal course, thereby involving a risk to the woman's health or to the health of the fetus in case of continued employment; or

(ii) the special nature of the work involves a risk to the fetus, or where the pregnancy prevents her from carrying out her work due to public authority requirements, and she has not been offered any suitable alternative employment.

(3) Reduced benefits may be paid by the local authority in connection with part-time absence from work

(i) due to the pregnancy taking an abnormal course;

(ii) due to the special nature of the work;

(iii) for the 4-week period immediately prior to childbirth.

(4) The Minister for Social Affairs is authorised to lay down rules governing eligibility for benefits under subsection (3) hereof.

13(1) Benefits may be payable for up to 26 weeks after childbirth.

(2) The mother is eligible for benefits for the first 14 weeks after childbirth. During the same period the father is eligible for benefits for 2 weeks.

(3) In addition, the parents between them are eligible for benefits for a further 10 weeks after the end of the 14th week after childbirth. Benifits can only be payable to one of the parant at a time.

(4) After the end of the 24th week after childbirth the father is eligible for benefit for a further 2 weeks.

14(1) In case of adoption, benefits may be payable for up to 26 weeks from the placement of the child where the authorities in charge of investigations determine that the prospective adopter(s) should spend some time at home.

(2) Benefits for prospective adopters shall only be payable to one of the spouses at a time, except for 2 weeks within the first 24 weeks. After the end of the 24th week after the placement of the child only the male adopter is eligible for benefits for 2 weeks.

15(1) If the child is admitted to hospital, the period of eligibility for benefits may be extended or deferred.

(2) If the recipient of benefits does not return to work, the period of eligibility for benefits shall be extended by the period of hospital admission, if admission takes place within the first 26 weeks after delivery or receipt. The benefits period may be extended for a maximum period of 3 months. The right to extend the benefits period shall not apply to the father's entitlement to benefits for 2 weeks under seciton 13(2), nor to the prospective adopters' right to receive benefits at the same time, cf. section 14(2).

(3) If the recipient continues or returns to work at the time of admission, the eligibility to benefits for the remaining period will be deferred. It is a condition that the recipient stops work at the time of discharge, and that the discharge takes place within 9 months from delivery or receipt.

16(1) Where warranted by specific conditions, one parent may become a party to the other party's entitlement to benefits.

(2) The party insured may attend leisure-time education without losing the entitlement to benefits, provided it is not contrary to the interests of the child, or discharge a civic duty.

(3) The Minister for Social Affairs is authorised to lay down rules governing eligibility for benefits under subsections (1) and (2) hereof.

(4) The employer shall pay reduced benefits in case of part-time absence from work for antenatal care.

16a(1) When the mother returns to work after childbirth, the entitlement to receive benefits will lapse for any remaining part of the leave period. In case of part-time return after the first two weeks after childbirth, the entitlement to benefits shall only lapse in respect of the days worked. The father may also return to work on a part-time basis after the first two weeks after the childbirth, in which case the entitlement to benefits lapses only in respect of the days worked. Reduced benefits will be payable for the days of part-time return.

(2) In case of limited participation in union work, teaching, etc., in the ordinary course of employment during the first 14 weeks of the maternity period, the entitlement to benefits shall only lapse in respect of the days actually spent on such activities. In case of activities lasting for less than one day, reduced benefits will be payable.

(3) For prospective adopters eligible for benefits under section 14 above, returning to work after receiving the child will cause benefits to lapse in respect of the days worked. Reduced benefits will be payable for the days of part-time return. The same shall apply to participation in union work, teaching, etc., in the ordinary course of employment.

(4) The Minister for Social Affairs is authorised to lay down rules governing benefits payable under subsections (1)-(3) hereof.

17(1) Benefits under this Part shall be payable to employees who satisfy the employment requirements set out in section 4 above, at the beginning of the period of absence.

(2) Benefits under this Part shall be payable to self-employed persons who satisfy the employment requirement set out in section 10(2) above, at the beginning of the period of absence.

(3) For the purpose of calculating the employment requirements referred to in subsections (1) and (2) hereof any period will be included in which the individual has had to cease working more than 4 weeks before delivery due to the specific nature of the work or where it is deemed necessary from a medical point of view for the individual to be spared work even if the conditions of section 12(2) are not met.

(4) The conditions set out in subsections (1) and (2) hereof shall not apply to the payment of benefits under section 11(2) above.

18(1) Sections 9 and 10 shall apply correspondingly to the calculation of benefits under this Part, subject to a maximum amount of the aggregate benefits payable equalling the amount set out in section 9(2) above.

(2) Persons receiving training or education under a plan provided for by section 32a of the Act on an Active Labour Market Policy, in respect of which an allowance is payable under the Act on an Active Labour Market Policy or under the Act on Compensation for Attending Vocational Adult and Continuing Education, or a trainee allowance under the Act on Adult Vocational Training are eligible for benefits under this Part calculated on the amount of unemployment benefit received by the person in question when the training/education right and duty accrued.

19Application for benefits under this Part shall be submitted to the local authority within 9 months from the delivery or receipt of the child. If the application is not submitted within the said time, the entitlement to benefits will lapse.

19a(1) Parents of seriously ill children under 14 years are eligible for benefits from the local authority if they give up paid or independent employment in full or in part, due to the child's illness.

(2) It is a condition that the child's illness is deemed to require admission to hospital or any similar institution for 25 days or more. For this purpose, treatment or care in the home will be deemed to constitute such admission where warranted by the child's specific needs in connection with his/her illness.

(3) The required period of 25 days or more as specified in subsection (2) hereof shall not apply to periods of hospital admission in respect of children of single parents entitled to regular child benefit under section 2(i) or (ii) of the Act on Child Benefits and Advance Payment of Child Support.

(4) The benefits hereunder shall not correspond to the benefits for which the recipient would be eligible in case of his/her own illness. For self-employed persons who do not subscribe to the voluntary insurance benefits may be payable from the first day of absence. In exceptional cases, the local authority may agree to pay a higher amount of benefits than the amount specified in section 9(5) above to the child's parents.

(5) The maximum period during which benefits will be payable under subsection (1) hereof shall be 52 weeks within the past 18 calendar months.

(6) The Minister for Social Affairs is authorised to lay down rules governing the payment of benefits to parents of seriously ill children under the age of 14, including rules governing the allocation of such benefits between the child's parents.

Chapter V

Part 8

Voluntary insurance

20(1) Persons who are self-employed may secure benefits from the local authority during the first 2 weeks of any period of illness.

(2) The benefits will amount to not less than 2/3 of the amount specified in section 9(2) from the first day of absence due to childbirth or adoption. In case of absence due to illness the entitlement does not accrue until the third day of absence unless the individual has elected to pay the increased premium, cf. section 29(1) below, in which case benefits will be payable from the first day of absence.

(3) The amount of benefit may exceed the amount set out in subsection (2) hereof where insurance has been taken out in respect of the amount set out in section 9(2) above, and where warranted by the amount of income.

(4) The Minister for Social Affairs is authorised to lay down rules governing the voluntary insurance.

Chapter VI

Part 9

Entitlement to benefits in case of work-related injuries

21(1) Any person suffering work-related injuries covered by the industrial injury insurance legislation is entitled to benefits from the first full day of absence from the occurrence of the injury.

(2) For persons who are not gainfully employed on a full-time basis or who are not usually in gainful employment, the income on which the benefits are to be calculated will be based on an estimate.

Part 10

Restriction of duration and follow-up

22(1) Payment of benefits shall lapse upon payment of benefits or sick pay during illness for more than 52 weeks during the 18 previous calendar months, unless

(i) rehabilitation will most probably be initiated;

(ii) work trials or other exploratory measures designed to establish the claimant's working capacity will have to be undertaken, thereby increasing the benefits period for up to 2 times 13 weeks;

(iii) the claimant is undergoing or waiting for medical treatment likely to facilitate an early recovery of his/her working capacity;

(iv) a claim for compensation has been filed under the Act on Insurance against the Consequences of Work-Related Injuries; or

(v) anticipatory pension proceedings have been commenced; or

(vi) required on any other grounds.

(2) The Minister for Social Affairs is authorised to lay down rules governing any extension of the benefits period.

(3) The calculation of benefits periods under subsection (1) hereof shall not include the days in respect of which benefits or sick pay has been paid

(i) by the employer or the local authority during the first two weeks of absence due to illness or

(ii) due to pregnancy, maternity or adoption pursuant to Part 7.

(4) If the entitlement to benefits has lapsed during a continuous period of illness of 52 weeks, any resumption of the payment of benefits will be subject to the claimant providing evidence of his/her working capacity for at least 13 weeks from the date of such lapse.

23(1) The payment of benefits shall lapse at the end of any calendar month upon payment of benefits or sick pay for a period exceeding 13 weeks during the 12 previous calendar months to any person who

(i) receives a social pension other than disability benefit;

(ii) satisfies the medical requirements for claiming a social pension other than disability benefit;

(iii) has attained the age of 65 or, in the case of persons aged 60 or over on 1 July 1999, 67.

(2) The calculation of benefits periods under subsection (1) hereof shall not include the days in respect of which benefits or sick pay have been paid

(i) by the employer or the local authority during the first two weeks of absence due to illness or

(ii) due to pregnancy, childbirth or adoption pursuant to Part 7.

(3) If the entitlement to benefits has lapsed during a continuous period of illness of more than 13 weeks, any resumption of the payment of benefits will be subject to the claimant providing evidence of his/her working capacity for at least 13 weeks from the date of such lapse.

(4) The local authority may commence proceedings to determine whether the claimant is to be transferred to the social pensions system due to ill health.

(5) The local authority may extend the benefits period for the persons listed in subsection (1) hereof. The Minister for Social Affairs is authorised to lay down rules to that effect.

24(1) With a view to maintaining the claimant's attachment to the labour market, the local authority shall within 8 weeks and thereafter at intervals of not less than 8 weeks review the claimant's conditions for the purpose of establishing whether there is any need for treatment, retraining, rehabilitation or any other assistance for the claimant or his/her family. Such review shall be undertaken in consultation with the claimant, doctors, hospital and rehabilitation institutions, enterprises and trade organisations, as well as the public employment service.

(2) Prior to the initial contact to the claimant, the local authority shall decide whether a personal interview with the claimant is required due to the nature of the claimant's illness or the frequency thereof. At the same time, the required degree of involvement of doctors, hospital and rehabilitation institutions, enterprises and trade organisations, as well as the public employment service, must be determined.

(3) During the first follow-up, the local authority shall decide whether a follow-up plan should be drawn up. In any event, such plan shall be drawn up at the latest when the recipient has been absent from work due to illness for a period of 6 months during the past 12 months. If the local authority has extended the benefits period in pursuance of section 22(2)(i) above, any necessary exploratory activities prior to rehabilitation must have been implemented within 6 months from the date of such extension.

(4) If the claimant is unable to recover his/her working capacity, the local authority shall commence proceedings for a social pension provided the relevant conditions are met.

(5) The Minister for Social Affairs is authorised to lay down rules governing follow-up on long-term recipients of benefits.

Part 11

Funding and reimbursement

25(1) The employer shall pay the cost of benefits for the first two weeks of any period of absence due to illness and in connection with antenatal care, whereas any other cost of benefits shall be payable by the claimant's residential local authority, but see section 30 below.

(2) For persons in flexible working arrangements, cf. Part 7 of the Act on an Active Social Policy, the local authority shall pay the cost of benefits during illness, cf. section 1(3) above.

26(1) An employer remunerating its employee during time off from work is entitled to recover any benefits the claimant would otherwise have been paid by the local authority in respect of the same employment relationship, subject to a maximum amount corresponding to the amount of remuneration paid for the same period.

(2) Where the claimant is in receipt of remuneration during time off from several employers, the benefits shall be appropriated between the employers in proportion to the benefits pertaining to the individual employment relations.

(3) The Minister for Social Affairs is authorised to lay down rules governing the filing of claims for reimbursement under subsection (1) hereof and of notification of absence due to illness.

27(1) The Minister for Social Affairs is authorised to lay down rules to the effect that private employers whose aggregate annual wage bill does not exceed a specified amount may arrange insurance under which the employer is entitled to reimbursement of an amount from the local authority corresponding to the benefits which the employee is entitled to receive from the employer, subject to a maximum amount equalling the employee's entitlement from the local authority, cf. section 9(5) above. The total amount of premiums shall be fixed so as to cover 70% of the cost of the arrangement.

(2) All employers, other than public authorities and private institutions, whose expenses are covered as to 50% or more out of public funds shall be defined as private employers. In addition, parents who have chosen to accept a financial subsidy for private day-care, cf. section 26 of the Social Assistance Act, shall be deemed to be private employers.

28The Minister for Social Affairs is authorised to lay down rules to the effect that subject to approval from the local authority, an employer may enter into an agreement with the employee in exceptional cases providing for the reimbursement of an amount corresponding to the employee's benefits entitlement from the employer. The amount of reimbursement from the local authority shall not exceed the amount of the employee's entitlement under section 9(5) above.

29(1) The Minister for Social Affairs is authorised to fix the amount of premium for the voluntary insurance under section 20 above in proportion to the amount of benefits secured and the period covered. The aggregate premium shall be fixed in such a manner as to cover 55% of the cost where benefits are secured from the third day of absence, or 85% where benefits are secured from the first day of absence.

(2) The Minister for Social Affairs is authorised to lay down rules governing payment of insurance contributions under subsection (1) hereof and section 27 above. The contributions with interest shall be recovered subject to the rules governing the collection of income taxes.

30(1) The state shall be liable for the local authority's cost of sickness benefits during the first 4 weeks, cf. section 25 above, and the cost of maternity benefits. In all other respects, the state shall be liable for 50% of the local authority's cost of benefits up to and including the 52nd week as from the first day of the current illness period and employment. Thereafter the local authority shall pay the full cost of sickness benefits.

(2) The State shall be liable for 50% of the local authority's cost of benefits under section 19a above.

(3) The Minister for Social Affairs is authorised to lay down rules governing authorisation, accounting and auditing procedures.

Part 11a

Labour Market Supplementary Pension Contributions

30a(1) In connection with the payment of benefits under this Act to employees aged 16 to 66, twice the contribution fixed under section 15(1), cf. sections 2a and 4a, of the Act on the Labour Market Supplementary Pension. No contribution shall be payable where the employee has elected to have the supplementary pension paid out at age 65 or over.

(2) The rules governing the calculation of the contribution shall be laid down by the trustees of the Labour Market Supplementary Pension Fund subject to the principles set out in section 15 of the Act on the Labour Market Supplementary Pension.

(3) The employee shall pay one-third of the contribution, the remaining two-thirds being payable by the employer or, where benefits are being paid by the local authority under sections 4, 11 and 21. In case of payment of benefits under section 19a, the recipient shall pay one-third of the contribution, two-thirds being payable by the local authority.

(4) The employee's contribution as calculated by the local authority shall be rounded to the nearest full amount, cf. section 9(2) above. The share of the contribution payable by the local authority shall amount to twice that amount.

(5) The employee's share of the contribution shall be withheld from the benefits paid.

30b(1) The amount paid to the Labour Market Supplementary Pension Scheme by the local authority shall be covered by a contribution from the employer. The cost to the local authority of payments under section 30a(3) above shall be payable by the state.

(2) The employer contribution shall be calculated in proportion to the number of employees from employers receiving benefits from the local authority.

(3) For employers receiving compensation under section 17a of the Act on the Labour Market Supplementary Pension, the contribution shall be collected by setting off against the compensation prior to setting off against contributions under any other statutory provisions. The amount shall be calculated by the Labour Market Supplementary Pension Scheme on the basis of the aggregate contributions to the Labour Market Supplementary Pension Scheme received from employers during the 3-month periods relevant for the calculation of the compensation, cf. section 17a(2) of the Act on the Labour Market Supplementary Pension. The annual compensation shall amount to the contribution fixed under subsection (4) hereof for any one amount paid by the employer corresponding to the annual contribution under section 15(1) of the Act on the Labour Market Supplementary Pension.

(4) The Minister for Social Affairs is authorised to determine the contribution under subsections (1) and (2) hereof upon recommendation from the Labour Market Supplementary Pension Scheme.

(5) The contribution provided for under subsection (1) hereof shall be paid to the Labour Market Supplementary Pension Scheme subject to the general rules applying to the payment of contributions to the Labour Market Supplementary Pension Scheme.

(6) Any failure to pay the contribution when due shall be subject to the rules laid down in section 17(2)-(5) and (7) of the Act on the Labour Market Supplementary Pension.

30c(1) In connection with the payment of benefits under this Act to employees, separate pension savings shall be payable, in the amount stipulated by section 17f(3) of the Act on the Labour Market Supplementary Pension.

(2) The local authority or the employer, as the case may be, shall deduct the said savings from the calculated benefits for the purpose of payment of the amount to the Labour Market Supplementary Pension Scheme at the end of each quarter. Each share of such amount pertaining to a week shall be rounded down to the nearest full amount.

(3) Upon the recommendation of the trustees of the Labour Market Supplementary Pension Fund, the Minister for Social Affairs is authorised to lay down rules governing the payment of the amount under subsections (1) and (2) hereof and governing the report thereon to the Labour Market Supplementary Pension Fund, including an amount withheld by employers shall be deemed to constitute, be payable and reportable with contributions under section 30a(1) above.

(4) Any failure to pay such savings amounts when due shall be subject to the rules set out in section 17(2)-(5) and 7 of the Act on the Labour Market Supplementary Pension Scheme.

Part 12

Complaints etc.

31(1) The local authority shall make decisions as to the entitlement to benefits. Where an employer fails to pay benefits or any part of thereof, and the local authority finds that this is unreasonable, the local authority shall pay such benefits in advance, including contributions to the Labour Market Supplementary Pension Scheme, subject to giving the employer notice thereof.

(2) Where the local authority has paid benefits in advance under subsection (1) hereof, the employer shall reimburse the amount of such advance within 4 weeks of the date of receipt of notice thereof. In case of attachment of earnings etc., the amount may be collected under the provisions on collection of personal income taxes under the Income Tax Act.

32(1) Decisions by the local authority may be brought before the social complaints board, cf. part 10 of the Act on Legal Protection and Administration in Social Matters.

(2) If the complaints board or the Social Appeals Board decides that the employer is liable to pay benefits where the local authority has advanced the amount under section 31(1) above, the employer shall reimburse such amount within 4 weeks from the date of receipt of notice thereof. In connection with attachment of earnings, the amount may be collected under the provisions governing collection of income taxes under the Income Tax Act.

33.(Repealed).

34.(Repealed).

Part 13

Administration etc.

35(Repealed).

36The Prison and Probation Service shall notify the local authority if a benefit recipient is committed for sentence or otherwise detained, including being remanded in custody.

37(1) Persons receiving benefits under this Act shall inform the employer of any change in conditions or other circumstances likely to cause any variation or lapse of benefits, including the employer's entitlement to be reimbursed.

(2) Any person who has neglected his/her duty of disclosure under subsection (1) hereof or under section 11 of the Act on Legal Protection and Administration in Social Matters, or who has otherwise received unjustified benefits under this Act in bad faith shall repay any amount so received.

(3) Collection proceedings shall be subject to the provisions governing the collection of personal taxes.

(4) Claims for repayment of overpaid benefits under this Act may be set off against any other statutory benefits, semi-retirement pension and social pension.

38Companies etc. (corporate bodies) may be held criminally liable subject to the provisions of Part 5 of the Danish Penal Code.

39(1) Claims for benefits under this Act shall not be available for execution or other legal proceedings until 3 months from the date on which the specific benefit accrued. Any purported agreement on such claims shall be void.

(2) If a person receives benefits from the local authority, cf. sections 4, 10, 21 and 26 above, due to an injury caused by a tortfeasor whose liability has been established, the local authority may claim indemnification or contribution in respect of the benefits paid, in so far as the relevant requirements for replacement are satisfied.

(3) Insurance companies shall inform the victim's residential local authority of any compensation for personal injury paid to the victim.

40(1) The Minister for Social Affairs is authorised to lay down specific rules governing benefits for sailors.

(2) The Minister for Social Affairs is authorised to lay down rules governing the extent to which benefits shall be payable during stays abroad.

41(1) Subject to agreements with other states the Minister for Social Affairs is authorised to lay down rules providing for derogation from provisions on incomes and calculation periods.

(2) The Minister for Social Affairs is authorised to lay down provisions on derogation from statutory rules where this is required in order for the European Community regulations on social insurance for employees and self-employed persons to be applicable.

Part 14

Pilot schemes

41aUpon application from a local authority, the Minister for Social Affairs is authorised to consent to the implementation of pilot schemes derogating from the provisions of Part 3 and sections 20, 24 and 27 above.

Part 15

Commencement and transitional provisions

42(1) The Act shall come into force on 2 April 1990. On the same date the Act on Benefits in the event of Illness or Childbirth, cf. Consolidation Act No. 205 of 28 March 1989 shall be repealed. With effect from 1 January 1990 Act No. 271 of 3 May 1989 shall be repealed.

(2) This Act shall apply to any case of absence due to illness where the first full day of such absence is 2 April 1990 or thereafter. In case of absence due to maternity or adoption the Act shall apply where the childbirth or the placement of the child, as the case may be, takes place on or after 2 April 1990. Where a claimant becomes entitled to benefits on the basis of one employment relationship prior to the commencement of this Act, subsequently becoming entitled to benefits during the same period of absence on the basis of another employment relationship or based on self-employment from a date after the commencement of the Act, the existing rules shall apply to the full period of absence.

(3) Provided always that section 22 shall be effective in respect of any illness occurring on or after 1 October 1989. In calculating for the purpose of determining duration, any periods prior to 2 April 1990 shall include only such days as were included for the purpose of such determination under the existing rules. For any illness occurring prior to 1 October 1989, the entitlement to benefits will lapse on or before 30 September 1990 if the requirements set out in section 22 of the Act are satisfied.

(4) For persons joining the voluntary insurance scheme under Part 8 above within 3 months from commencement of the Act, the entitlement to benefits shall accrue 3 months from the date of application for admission to the insurance scheme.

(5) Section 16 above shall be effective from 2 April 1990, whether or not the childbirth or the placement of the child has taken place before 2 April 1990.

(6) Persons who are entitled, at the time of commencement of the Act, to receive benefits prior to the childbirth during periods of absence due to pregnancy will be entitled to receive benefits during the remainder of the period of absence in the same amount or more per week as for the period prior to commencement.

(7) In calculating employment periods under sections 3, 4, 10(2) and 17 any employment prior to the commencement of the Act shall be included.

(8) Section 32 shall be effective in the case of any decision under this Act. Decisions pertaining to absence where the first full day of absence is prior to the commencement of the Act shall be governed by the existing provisions.

(9) The Benefits Committee set up under the existing rules shall remain in office for the remainder of their term. The local member shall be appointed for the remaining term of office.

(10) The Minister for Social Affairs is authorised to stipulate a percentage rate under the existing rules applying to the adjustment of the annual income in respect of which benefits will accrue, according to the movements in income levels of persons receiving benefits under the existing rules.

43The Act shall not extend to Greenland or the Faeroe Islands.

Act No. 1253 of 20 December 2000 amending sections 4(3)(iii) and 18(3) (consequential amendments due to the implementation of the adult and continuing education reform), contains the following commencement provision:

11

(1) The Act shall come into force on 1 January 2001.

(2)-(4) ...

Act No. 1304 of 20 December 2000 amending section 23 (repeal of the 70-year age limit) contains the following commencement provision:

2

The Act shall come into force on 1 January 2002.

Act No. 1305 of 20 December 2000 amending section 22(1) (extension of the benefits period) contains the following commencement provision:

2

The Act shall come into force on 1 January 2001.

Act No. 1308 of 20 December 2000 amending sections 8, 24 and 30 and inserting section 41a (amendment of reimbursement provisions, more flexible rules relating to the 8 weeks' follow-up and a pilot scheme provision) contains the following commencement provision:

2

The Act shall come into force on 1 January 2001, becoming effective in the case of any illness occurring on or after 1 January 2001.