If Denmark is hit by a new pandemic, four out of ten small and medium-sized companies will lay off employees instead of seeking government compensation. This is shown by a new study from SME Denmark. The organization warns that companies no longer trust the compensation schemes. This is what SME Denmark writes in a press release.
- For far too many companies, the compensation schemes during corona were a disaster with long case processing times, recalculations and unexpected repayment demands. Our companies felt let down in a bureaucratic settlement circus that for many has lasted four years and has cost more in administrative costs than they have received in compensation. Therefore, it does not surprise me that many will be grateful to accept the opportunity for compensation next time, says CEO of SME Denmark Jakob Brandt.
He points out that companies can no longer be expected to take responsibility for employment if politicians do not change the framework.
- We risk that companies will not hold back on employment again because they do not trust the possibilities for compensation. This calls for political action, says Jakob Brandt.
According to SME Denmark, the rights of companies were weakened in 2020 when the right to compensation for preventive measures during an epidemic was removed. At the same time, the possibility of appealing decisions on compensation to the courts was abolished. According to the organization, a political agreement from 2024 on compensation for future epidemics does not provide any real guarantees.
- Politicians should take responsibility and ensure companies have real security in the event of a new pandemic. If not, we will see a business community that takes matters into its own hands by minimizing the risk, and that means layoffs and lower investments in the Danish economy, says Jakob Brandt.
He emphasizes that politicians should act now to create clear rules for compensation.
- If politicians want Denmark to be just as financially sound through the next pandemic, they would be wise to agree on the rules for compensation as soon as possible, so that companies can read the fine print before agreeing to retain their employees, even if politicians close their businesses, says Jakob Brandt.
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