Support schemes in connection with COVID-19
In the wake of the steps to contain the spread of Corona virus in Denmark, the Danish Parliament has implemented a number of support schemes to protect the Danish society. Initiatives have already been made to support most social groups. The parties of the Danish Parliament have announced that necessary steps will be taken to ensure that the vast majority will have a job when this health crisis is over.
Thus support schemes have been made concerning deferred VAT and taxes, government guaranteed loans, special support to self-employed and freelancers, compensation for fixed expenses for self-employed persons, wage compensation, compensation for cancelled events, sick pay from the first day, better access to bank loans, extended right to sick pay and unemployment benefits, advance and prepayment of public expenditure, strengthening the Danish Travel Guarantee Fund and expansion of its purpose, and increased opportunities for student loans.
Although said schemes seems to have thrown the Treasury wide open, it will only be possible to be compensated through one support scheme. The most advantageous scheme for you or your business depends on your specific situation. If you choose to use a support scheme, you should also note that there will be certain obligations to i.e. retain an employee, etc.
If you want to know more about the schemes and how it may benefit you or your company, please do not hesitate to contact TVC for an informal talk about your situation.
Matters relating to your company’s employees in Denmark
Many companies are in a situation where they have to consider cutting back on staff or at least limiting employee expenses. Please do not hesitate to contact TVC Law Firm for an informal talk about your options for instructing your employees to take holiday, time off in lieu, etc., just as we may help answering your questions about the possibility to amend – or even terminate – existing terms and conditions in your employment contracts.
In Denmark an increasing number of employees have been placed in isolation in line with the spreading of COVID-19. If you need to update your knowledge on your rights and duties towards your employees or how to handle this situation wisest, please do not hesitate to contact TVC Law Firm for an informal talk about your specific situation.
Corporate matters and M&A
These days, several companies and associations are cancelling annual general meetings that have already been scheduled. New legislation has been adopted in order to meet the companies’ challenges with respecting the ban that limits people’s right to meet and gather. We are ready to answer questions about the option to postpone the annual general meeting and the requirements to conduct the annual general meeting electronically before the deadline of 31 May 2020.
There are several company owners who are currently considering purchasing or selling their company or business, just as others are in the process of a sale. Will the current uncertainty about COVID-19 have an impact on companies’ business and future? How does the buyer and the seller react, and are there any specific circumstances they should take into account?
Tax and VAT
The Danish Parliament has passed a bill to extend the time limit for payment of tax deducted from income at source (in Danish: A-skat), Labour Market Contribution (in Danish: AM-bidrag) and declaration of VAT.
Please do not hesitate to contact TVC Law Firm if you want to know more about your options for extension of payment.
If the performance of a construction contract is prevented or delayed, it should be determined whether the delay i.e. may justify a claim for an extension of time. As a clear starting point, neither the owner nor the contractor may claim for an extension of time pursuant to AB 92/18 (general conditions for the provision of works and supplies with building and engineering) just by referring to the actual state of society or COVID-19 in general. A claim for an extension of time must be documented specifically with a direct causal link to the cause relied upon – force majeure.
An extension of time due to force majeure may be claimed if i.e. materials could not be delivered or the material is delayed if the supplier is located in a particular risk area preventing the supplier to deliver on time. Without stating a specific reason and by referring in general to COVID-19, the owner cannot require the contractor to suspend the work. Likewise, the contractor is not entitled to stay away from the building site without stating a specific reason. In the event of delay caused by COVID-19, it is important that the party has the necessary documentation and that the claim for an extension of time is notified in due time.
Insolvency, reconstruction and bankruptcy
One of the many unfortunate consequences of the COVID-19 outbreak is likely to be financial challenges for companies and personally owned businesses. We have already seen the consequences of the lockdown for employees, and many minor shops and restaurant are asking for liquidity in order to meet their obligations towards employees and landlords. TVC Law Firm is ready to advise you on measures to avoid closing your business, reconstruction or bankruptcy.
International Contracts (suppliers, customers and contractual obligations)
If you experience difficulties performing your obligations on time to your customers or experience that your suppliers or contractual partners do not deliver products or services on time due to the COVID-19 outbreak, please do not hesitate to contact TVC Law Firm for an informal talk about your rights and obligations in your specific situation.
Wills and prenuptial agreements
TVC Law Firm is still available if you need immediate assistance in relation to the law of domestic relations, wills and succession. We are ready to help if you need legal advice in relation to divorce, matters concerning children, drawing up a will, prenuptial agreements, lasting power of attorney, etc. Please contact us by phone of email for an informal talk free of charge.
TVC Law Firm follows the recommendations set by the Danish government which is why all our employees generally are working from home. Our employees are fully available to meet your requests and answer your questions by phone and email, just as every employee shows the same flexibility as always. Our offices are open for receiving mail, deliverances and documents. However, we urge you to send material and documents electronically when possible.