Part 1: Purposes and individual responsibility
Part 2: Citizenship and residence
Part 3: Advice and follow-up
Part 4: Cash benefits and activation
Part 5: Entrepreneurship allowance
Part 6: Rehabilitation, including employment rehabilitation
Part 7: Flexible working arrangements and sheltered employment with wage subsidy, etc.
Part 8: Tools and equipment
Part 9: Contributions to the Labour Market Supplementary Pension Scheme (ATP)
Part 10: Assistance in special cases
Part 10 a: Assistance for surviving dependants
Part 11: Payment of assistance
Part 12: Repayment
Part 13: Complaints procedure
Part 14: Finance, etc.
Part 15: Rules on pilot schemes
Part 16: Commencement and transitional provisions

Part 1
Purposes and individual responsibility

1(1). The purposes of this Act are -

(i) to prevent persons who are facing or risk being faced with difficulties in remaining in their jobs from needing financial support; and

(ii) to establish a financial safety net for any person who is otherwise unable to provide for him/herself and his or her family.

(2). The purpose of providing financial support is to enable recipients to become self-supporting. Therefore, recipients and their spouses are required to apply their best efforts to improve and develop their working capacity, e.g. by accepting offers of employment or activation.

(3). Depending on their needs and qualifications, recipients shall be given the opportunity to influence and participate in the planning of the assistance.

2(1). Every man and woman is responsible under public law for maintaining him/herself, his or her spouse and any children under the age of 18.

(2). The duty to maintain a spouse lapses on legal separation or divorce.

(3). The duty to maintain a child lapses if the child itself is responsible for maintaining a spouse or a child.

(4). Notwithstanding the parents' responsibility of maintenance, the municipal authority shall provide assistance for a pregnant daughter under the age of 18 to meet all pregnancy-related requirements.

Part 2
Citizenship and residence

3(1). Any person lawfully resident in Denmark is entitled to assistance under this Act.

(2). To be eligible for permanent financial support a claimant must be -

(i) a Danish national;

(ii) a national of an EU/EEA member state, or a member of the family of such a person entitled to residence under Community law; or

(iii) be subject to an agreement under section 4, below.

(3). Financial support shall be deemed to be of a permanent nature if payable for more than one year or if payments must be expected to last for more than one year.

(4). If a national of a country not covered by subsection (2), paragraphs (ii) and (iii) hereof, needs permanent assistance, the National Social Security Agency shall decide whether the person in question shall be returned to his or her own country. Provided always that the Agency shall not decide on the return under this Act of any person referred to in subsection (2) (ii) and (iii) who has lawfully been living in Denmark for more than the past three years with a view to obtaining permanent residence. For a person who has been subject to the Integration Act and who does not hold a permanent residence permit, the three-year limit provided for under the second sentence hereof shall only run from the date on which the introductory period is completed.

(5). In making decisions under subsection (4), first sentence, hereof, the Agency shall have regard to, for example, -

(i) whether the person is married to and is cohabiting with a Danish citizen, a refugee or a non-citizen who has lawfully been living in Denmark for more than three years with a view to obtaining permanent residence;

(ii) the duration of his/her stay in Denmark;

(iii) his/her medical condition;

(iv) any family connection or other ties to Denmark as compared to the country of origin; and

(v) whether any person having undertaken to maintain the non-citizen is or should be observing that duty.

4. By agreement with other states or with international organisations non-citizens may be granted the right to receive permanent financial support while in Denmark.

5(1). Persons living abroad are not eligible for assistance under this Act.

(2). Provided always that in exceptional cases the municipal authority may extend the entitlement to receive assistance during short stays abroad -

(i) if the recipient is engaged in activities forming part of activation or rehabilitation programmes under this Act;

(ii) if the recipient is exercising rights of access to his/her own children under 18, whether by agreement or as ordered, if the exercise of access is not practicable in Denmark;

(iii) if the recipient requires urgent treatment which is not available in Denmark;

(iv) in any other exceptional situation, e.g. visiting a close relative suffering from serious illness.

(3). It is a condition of continued entitlement to assistance while abroad that the stay abroad does not prevent the recipient from satisfying the usual conditions of entitlement to assistance, e.g. by accepting offers of employment or activation.

6(1). The National Social Security Agency may decide that a Danish citizen who has been living abroad for many years may be eligible for financial support if a home journey can thereby be avoided and if warranted by other factors. It is a condition that neither the claimant nor his/her spouse has sufficient income or capital to meet the necessary requirements.

(2). Any decision to grant financial support under subsection (1) hereof shall be subject to a recommendation from the Foreign Service based on the level of the claimaint's expenses and the cost of living in the country in question. Any support granted shall not exceed a monthly amount corresponding to the basic old-age pension, subject to the deduction of any income.

Part 3
Advice and follow-up

7(1). When a person files a claim for assistance, the municipal authority shall immediately assess any need on the claimant's part for advice about the way in which he/she may be able to deal with any present or future financial problems, preferably unassisted.

(2). The advice may consist in information about the way in which the claimant may improve his/her employment or training prospects.

8(1). The municipal authority shall process claims for and enquiries about assistance subject to the relevant rules laid down in the Act on Legal Protection and Administration in Social Matters.

(2). Where a person needs financial support in case of unemployment, the municipal authority may normally presume that the need can be satisfied by means of cash benefits and activation in pursuance of the rules laid down in Part 4, below.

(3). Under the Act on Legal Protection and Administration in Social Matters the municipal authority shall determine, as soon as possible and not later than 8 weeks from the first payment of periodical benefits, whether assistance granted under Part 4 is sufficient to enable the claimant to provide for him/herself. If the municipal authority is of the opinion that this is not the case, it shall seek to make other suitable offers available, such as rehabilitation, sheltered employment with wage subsidies, etc.

8a(1). The municipal authority is responsible for ensuring that persons receiving assistance on grounds of unemployment only are registered with the Public Employment Service. The municipal authority is further responsible for ensuring that any suspension of assistance is reported to the Public Employment Service.

(2). The Minister for Social Affairs is authorised to lay down rules governing registration and deregistration with the Public Employment Service.

8b. The municipal authority shall provide private enterprises with a free enterprise service designed to promote an active policy vis-à-vis persons who are unable to obtain or maintain employment subject to normal conditions in the labour market. The service scheme involving administrative assistance for enterprises shall be based on the needs of the individual enterprise for advice and support in the establishment and progress of the employment relationship, including the need to simplify the administrative procedures in connection with the employment.

9(1). In connection with activation the municipal authority may prepare a written plan if it finds that such a plan will promote a comprehensive strategy. According to the person's own wishes and qualifications, the plan is to specify the employment or training target and to plan the appropriate activities to ensure that the target is achieved. If employment or training target is not realistic for the time being, the aim of the plan may be to stabilise and improve the person's general status.

(2). The municipal authority shall prepare an employment plan, cf. section 50 below, for any person who is to receive assistance for the purpose of rehabilitation.

10(1). The municipal authority shall constantly follow up on cases under this Act to ensure continued compliance with the requirements for granting assistance. At the same time the municipal authority is required to ascertain whether there is a basis for granting other types of assistance.

(2). The municipal authority shall follow up on a case, cf. subsection (1) hereof, within 3 months of the first payment of assistance or of the first assessment under section 7 of the Act on Legal Protection and Administration in Social Matters. Thereafter follow-up must take place within 3 months of the most recent assessment or of the written plan provided for by section 9, above.

(3). Special rules shall apply to follow-up in the following cases:

(i) The municipal authority shall follow up on a section 50 employment plan every 6 months.

(ii) In cases involving flexible or sheltered working arrangements with wage subsidies under Part 7, below, the municipal authority shall effect a follow-up within 6 months of the initial payment of wage subsidies. Thereafter follow-up is to take place within 12 months of the most recent assessment.

 

Part 4
Cash benefits and activation

11(1). The municipal authority shall provide assistance by way of cash benefits and activation.

(2). Any assistance shall be granted subject to

(i) the claimant having suffered a change of circumstances, e.g. through illness, unemployment or separation;

(ii) such change causing the claimant's inability to provide for him/herself or any dependants; and

(iii) the needs not being covered by any other benefits.

 

12(1). No assistance shall be provided to persons undergoing education/training. Provided always that the Minister for Social Affairs is authorised to lay down rules stipulating that in special cases assistance may be granted to persons undergoing education/training.

(2). Where assistance is being provided to a person whose husband or wife is undergoing education/training, no assistance will be granted to the husband or wife.

13(1). It is a condition of assistance being provided under section 11, above, that the claimant and his/her spouse has not been given a suitable offer of employment. If a person receiving section 11 assistance refuses a job offered or fails to appear for a job interview or an appointment with the Public Employment Service, the municipal authority shall assess whether the person is still satisfying the conditions by exploiting his/her employment opportunities.

(2). It is a condition of receiving assistance that the claimant and his/her spouse accepts a suitable offer of activation or any other offer likely to improve his/her employment prospects (job creation).

(3) Provided always that the claimant or his/her spouse shall not be required to accept any employment under subsection (1) hereof or any offer under subsection (2) hereof if -

(i) it appears from a medical report that the person is incapable of work due to illness, or that any continuation of the previous work might constitute a risk of damaging the claimant's health;

(ii) the person is entitled to absence with leave during pregnancy, maternity or adoption under the provisions of the Act on Equal Treatment of Men and Women (Employment and Maternity/Paternity Leave, etc.);

(iii) the person concerned has to take care of his/her children and no child care facilities can be provided; or

(iv) the work involves development and manufacture of war material.

(4). The rules set out in subsections (1) and (2), above, shall not apply to the claimaint's spouse where such spouse is receiving a living allowance out of public funds which is not conditional upon the recipient exploiting his/her employment opportunities.

(5). A person whose spouse is entitled to section 11 assistance and who has only been working at home may choose not to exploit his/her employment opportunities under the provisions set out in subsections (1) and (2) hereof. If so, the assistance for the couple will be calculated pursuant to the rules of sections 26(3) and 34(3).

14(1). The municipal authority shall not grant any assistance if the claimant and his/her spouse own sufficient property to cover their financial needs. Provided always that the municipal authority shall not take into account any amount up to DKK 10,000, for a married couple up to DKK 20,000.

(2). Likewise, any part of the capital which is required to maintain or obtain the necessary housing standard, or which should be maintained with a view to the claimant's and any dependant's employment or training opportunities shall not be taken into account.

(3). Likewise, any compensation for loss of working capacity payable as a result of personal injuries pursuant to

(i) the Criminal Injuries Compensation Act;

(ii) the Act on Liability for Damages; or

(iii) the Act on Insurance against the Consequences of Industrial Injuries

shall not be taken into account.

(4). The Minister for Social Affairs shall lay down detailed rules specifying any other cases in which compensation for loss of working capacity payable as a result of personal injuries shall not be taken into account.

(5). Likewise, the municipal authority shall not take into account any capital consisting of amounts paid by way of compensation for permanent injuries or non-pecuniary losses or any payments from approved social funds, foundations, associations, etc., which are exempt from tax in respect of amounts paid to beneficiaries, cf. section 7(z) of the Tax Assessment Act.

15. The Minister for Social Affairs is authorised to lay down rules specifying the cases in which capital consisting of capital pensions, other savings intended for use upon retirement from the labour market and life insurance policies, etc., with surrender rights.

16(1). The municipal authority shall offer activation or other job creating measures to persons covered by sections 11 and 13, above.

(2). Activation under this Act may cover one or more of the following activities:

(i) Short-term guidance and introduction programmes providing guidance on employment and training opportunities and providing access to testing certain employment wishes (work trials).

(ii) Work based training with wage subsidies, with private- or public-sector employers, cf. sections 12-14 of the Act on an Active Labour Market Policy.

(iii) Individual work based training with private- or public-sector employers, cf. sections 22 and 24 of the Act on an Active Labour Market Policy.

(iv) Individually tailored training activities.

(v) Individually tailored activating guidance and trainee periods, work experience courses improving work readiness and other initiatives featuring a combination of work and training.

(vi) Voluntary and unpaid activities according to the person's own wishes deemed by the municipal authority to be of importance to the community or to the individual's training or employment situation.

(vii) Adult or continuing education/training according to the individual's own wishes, cf. section 19, below.

(vii) Job rotation schemes under which unemployed persons replace employed persons, cf. section 20 of Act on an Active Labour Market Policy.

(3). The Minister for Social Affairs shall lay down rules specifying the training activities to be offered by the municipal authority under subsection (2)(iv) hereof.

(4). Where a municipal authority offers activation, several options should be made available, if possible.

17(1). Persons under 25 who are receiving assistance because they have refused a training offer under section 32a of the Act on an Active Labour Market Policy are not eligible for offers of work based training.

(2). The rule set out in subsection (1) hereof shall not apply to persons who have completed an activation offer and are to be offered activation again under section 24, below.

18(1). The working conditions for persons undergoing work based training and individual work based training shall correspond to the working conditions under the terms of a collective agreement or to the usual working conditions for similar occupations. Provided always that the municipal authority shall fix the working hours in consultation with the employer.

(2). Persons undergoing work based training or individual training shall enjoy the statutory protection extended to employees. Provided always that persons in individual work based training shall not be subject to the Holiday with Pay Act, the Act on Daily Benefits in the event of Sickness or Maternity and the Act on Employers' Reimbursement for Trainees

(3). The Minister of Labour is authorised to specify exemptions from subsection (2), first sentence, hereof.

19(1). Persons over the age of 25 who have received section 11 assistance for a continuous period of 6 months may attend adult or continuing education/training programmes entered on the positive list for study leave. It is a requirement for attending such programmes that the education/training programme forms part of a written plan according to section 9(1), above, and that the person concerned is not very likely to obtain stable and unsubsidised employment during the planned period of the programme.

(2). The municipal authority may contribute towards the payment of course fees if such fees are not unreasonable in proportion to the importance to the individual person's future employment prospects.

20(1). Persons under the age of 30 shall be given activation offers not later than at the end of a continuous period of 13 weeks on cash benefits.

(2). When the claimant receives assistance on account of unemployment, the offer shall be for

(i) 18 months if the claimant has no education/training qualifying him/her for admission to an unemployment insurance fund; and

(ii) 6 months if the claimant has completed an education/training programme qualifying him/her for admission to an unemployment insurance fund.

(3). The scope and duration of offers under subsection (2) hereof shall be such that with any unsubsidised part-time job the activation amounts to 30 hours per week.

(4). Offers to persons under 30 who are receiving assistance on account of problems other than unemployment must last for 18 months. The municipal authority shall determine the weekly number of hours offered.

21. Persons over the age of 30 shall be given activation offers not later than after the end of a continuous period of 12 months on cash benefits. The municipal authority shall determine the weekly number of hours and the duration of the offer.

22. Persons working at home and consequently covered by section 13(5), above, are entitled upon application to activation offers under the rules set out in sections 20 and 21, above.

23(1). Activation offers, other than for work based training, lasting for a continuous period of 12 months or more shall include a free period of 1 month in addition to the stipulated activation period, so that activation does not exceed 11 months within any 12-month period.

The municipal authority shall seek to place the free period in consultation with the person activated.

(2). During the free period the person activated is not under a duty to exploit his/her employment opportunities under section 13(1) and (2), above.

24. Persons under the age of 30 who have completed an activation offer under section 20, above, shall be given a new activation offer after a continuous period of 3 months on cash benefits.

25(1). Financial support shall constitute a monthly amount of

(i) DKK 9,317 for persons aged 25 or over with dependent children;

(ii) DKK 6,998 for other persons aged 25 or over;

(iii) DKK 4,489 for persons under 25 who do not reside with one or both parents; and

(iv) DKK 2,195 for persons under 25 who are residing with one or both parents.

(2). A person under 25 will receive DKK 9,317 if maintaining his or her own child at home.

(3). A pregnant woman under 25 will receive DKK 6,998 after the 12th week of pregnancy.

(4). A person under 25 who is under a proven duty to maintain a child, and who is receiving financial support under subsection (1), paragraphs (iii) or (iv) hereof, will be paid a monthly supplement corresponding to the amount of maintenance payable for the child, but not exceeding the standard amount. If the amount of child maintenance has been advanced at the time of payment of financial support, the supplement will be applied towards repayment of the maintenance liability. The financial support including any supplement shall not exceed DKK 9,317.

(5). A person who is solely responsible for the maintenance of children who are living abroad is only entitled to receive DKK 9,317 under subsection (1), paragraph (i) hereof, if that person can prove the existence and observance of such duty.

26(1). Financial support for a married couple shall be calculated as the sum of the amounts to which each spouse is entitled under sections 25 or 28.

(2). If only one spouse is eligible for assistance under section 11, above, and the other spouse is receiving financial support out of public funds, no assistance will be calculated for the spouse receiving such support.

(3). If only one spouse is eligible for assistance under section 11, above, and the other spouse has chosen not to exploit him/herself of his/her employment opportunities under section 13(5), the assistance for the eligible spouse will be calculated in pursuance of the rules set out in section 25 with a supplement of DKK 2,195. The assistance will be calculated in pursuance of subsection (1) hereof from the first day of the month following notification of the municipal authority by the person working at home that he or she wishes to exploit his/her employment opportunities under section 13(1) and (2), above.

27(1). An amount corresponding to the amount payable to a married old-age pensioner without any income other than the old-age pension, will be granted to persons

(i) who are aged 60 or over; and

(ii) who do not qualify for social pensions due to the eligibility rules.

(2). For any children under 18 of the persons referred to in subsection (1) hereof who are not entitled to child benefits, a monhly amount of DKK 1,897 will be payable. An amount per family will be paid regardless of the number of children.

28(1). By way of exception, financial support may be granted to a non-citizen having applied for asylum or family reunification whose application for a Danish residence permit has not been finally decided upon if the non-citizen is entitled to remain in Denmark pending such decision. Likewise, financial support may be granted to a person whose application for asylum or family reunification has been refused where the person concerned is under an obligation to leave the country under the provisions of the Aliens Act.

(2). The support referred to in subsection (1) hereof amounts to DKK 7,000 per month for persons with dependent children, and DKK 5,000 per month for any other persons. The amounts of support set out in the first sentence hereof shall not exceed the living allowance to which a person would be entitled under this Act or under the Social Pensions Act.

(3). It is a condition of eligibility for support under this section that the immigration authorities are not subject to a duty to provide financial support under the provisions of the Aliens Act.

29. Notwithstanding the rules set out in sections 25, 26, 30-34 and 81-84 the Minister for Social Affairs is authorised to lay down rules on financial support for

(i) persons who are being supported, in whole or in part, out of public funds under the provisions of any other legislation; and

(ii) persons remanded in custody or serving prison sentences.

 

30(1). If the claimaint and his/her spouse have incomes, such incomes will be deducted from any support payable, but cf. sections 31-33, below.

(2). In calculating the support for a married person under section 26(2), the municipal authority shall deduct only such part of the other spouse's income as exceeds DKK 9,317 or DKK 6,998, respectively, according to whether or not the claimant has dependent children.

31(1). If the claimant or his/her spouse has income from work or from activation or other job-creation measures, an amount of DKK 10.24 for each working hour completed will be ignored in the calculation of support under sections 25 or 28. The total number of hours for which the said amount may be ignored shall not exceed 160 hours per month per person.

(2). For persons without fixed working hours the number of hours shall be calculated on the basis of the income divided by the conversion factor specified by the Act on Unemployment Insurance, etc.

The Minister for Social Affairs shall lay down rules governing the conversion.

32. Holiday allowance under the holiday legislation will be deducted from the support when the holiday is taken. Deductions shall be limited to an amount corresponding to the support for the number of days which the holiday allowance is intended to cover.

33(1). No deductions will be made for:

(i) Disability benefit, disability allowance, outside assistance allowance and care allowance under the Social Pensions Act.

(ii) Compensation under section 38, below.

(iii) Payments to election officials.

(iv) Benefits from approved social funds, foundations, etc., which are exempt from taxation in respect of beneficiaries, cf. section 7(z) of the Tax Assessment Act.

(v) Children's income and income relating to children.

(vi) The value of meals, etc., during periods of hospitalisation, etc. Provided always that if a period exceeds 3 months, an amount may be deducted corresponding to the actual savings.

(2). Any compensation payable for loss of working capacity as referred to in section 14(3) and (4), compensation for permanent injuries and for non-pecuniary losses and any income arising therefrom shall not be deducted from the amount of support.

34(1). Any person who satisfies the requirements listed in section 11, above, whose housing costs are high or who is subject to heavy maintenance obligations may be eligible for special benefits, either separately or in connection with the payment of financial support under section 25, above.

(2). Before awarding any benefits, the municipal authority shall establish whether reasonable, cheaper housing is available.

(3). The following persons are not eligible for special benefits:

(i) Married couples covered by section 13(5).

(ii) Persons under 25 receiving financial support under section 25(1), paragraphs (iii) and (iv).

(iii) Persons receiving financial support under sections 27 and 28.

(iv) Persons receiving an allowance while on leave in pursuance of the Leave Act.

(4). The Minister for Social Affairs shall lay down rules governing the calculation of benefits under subsection (1) hereof, including rules governing restriction of benefits and deductions of any income.

35. For persons in work based training the employer shall pay wages under the terms of the relevant collective agreement. If the work is not subject to a wage agreement, wages shall be paid according to the standard rate for corresponding work. Wages paid by public-sector employers shall not exceed DKK 85.10 per hour (at 1 October 1996) exclusive of holiday pay, etc.

36.(1). For persons in individual work based training the municipal authority shall pay an allowance calculated according to section 25, subject to a minimum amount of DKK 30.72 per hour on activation.

(2). In addition to the allowance paid under subsection (1) hereof, the municipal authority shall pay an employment supplement per hour on activation, amounting to DKK 10.24.

37. Where a person attends an individually tailored course involving work based training or individual work based training periods, the person in question will receive wages under section 35 or allowances under section 36 during the relevant periods.

38(1). The municipal authority may decide to pay up to DKK 1,000 a month by way of compensation in full or in part of any estimated expenses incurred by attending activation offers. Provided always that no compensation shall be paid to persons undergoing work based training. While undergoing individual work based training a person will only receive compensation where the employment supplement provided for under section 36(2) only covers a small proportion of the expenses incurred by attending.

(2). In exceptional cases the municipal authority may decide to pay a higher compensation, but not exceeding DKK 1,500 a month.

(3). The municipal authority shall set out detailed guidelines for the payment of compensation. The municipal authority shall give the citizens notice of the content of the said guidelines.

39(1). If a person or his/her spouse fails to appear for an activation offer or other job-creation measure without good cause, the municipal authority may reduce the amount of payable under section 25. Any such reduction shall be made within 3 months of such failure to appear.

(2). The amount payable under section 25 shall be reduced in proportion to the number of hours for which the person has failed to appear. The reduction shall be calculated in proportion to the total activation offer or other job-creation measures for the month. The reduction of the monthly amount payable under section 25 shall not exceed 20 %.

40(1). In individual work based training the municipal authority shall reduce the employment supplement payable under section 36(2) by the number of hours for which the person has failed to appear without good cause.

(2). The municipal authority may reduce the compensation payable under section 38, above, proportionately where the person fails to appear for an activation offer without good cause.

41. Assistance will terminate if the claimant or his/her spouse refuses a job offer, an activation offer under section 16(2), paragraphs (i)-(v) and (viii), or an offer of any other job-creation measure, without good cause, while the offer remains open for acceptance.

Part 5
Entrepreneurship allowance

42-45. (Repealed).

Part 6
Rehabilitation, including employment rehabilitation

46(1). Employment rehabilitation or other rehabilitation consists of employment-related activities and financial support designed to enable persons with a limited capacity for work to maintain or gain a foothold on the labour market, thereby improving their prospects of providing for themselves and their families. Persons eligible for this kind of assistance are referred to as rehabilitees. The activities attended by a rehabilitee before clarification of the employment target are known as pre-rehabilitation. These are activities aimed at preparing the rehabilitee for employment or clarifying his/her situation.

(2). The municipal authority shall offer rehabilitation where employment-related activities under this or any other legislation are inadequate to enable the person in question to provide for him/herself.

(3). A rehabilitee is entitled to rehabilitation regardless of any income or property of his/ her spouse.

47(1). The municipal authority shall plan the rehabilitation in cooperation with the rehabilitee so as to adapt the offer to the person's qualifications and needs and having regard to the person's own future employment wishes. In the case of employment rehabilitation, rehabilitation is planned in cooperation with the rehabilitee as well as the enterprise, and rehabilitation is aimed at subsequent permanent employment subject to normal wage and working conditions in the enterprise or in an enterprise performing similar functions.

(2). Rehabilitation may include one or more of the following activities:

(i) Testing of working capacity, including assessment of a person's capacity in the course of employment rehabilitation in public- or private-sector enterprises.

(ii) Work experience or readiness activities, including activities in the course of --Employment rehabilitation in public- or private-sector enterprises.

(iii) Employment rehabilitation by way of training or instruction in public- or private-sector enterprises.

(iv) Education/training.

(v) Assistance in setting up in business (self-employment).

(3). Financial rehabilitation assistance may include:

(i) Rehabilitation allowance under section 52, below, subject to deduction of any income from work, etc., cf. sections 58 and 59, below.

(ii) Full or partial wage subsidy under section 62, below.

(iii) Special benefits under sections 63 and 64, below.

(iv) Assistance in setting up in business under section 65, below (self-employment).

(4). During pre-rehabilitation, the rehabilitee will retain his/her former income basis, in the case of employment rehabilitation as well as other categories of rehabilitation.

47a(1). The municipal authority shall develop and strengthen the measures aimed at promoting employment rehabilitation and other business-related offers. The implementation of the measures will focus on local conditions, including local resources and needs.

(2). The municipal authority may enter into agreements with private enterprises, associations, organisations, individuals or others to arrange for employment rehabilitation or other business-related offers to be made, to follow up on the offers made and to assist in providing future employment.

47b(1). In 1999 an amount of DKK 95m and thereafter DKK 145m a year will be made available for the coordination committees, earmarked for the preventive labour market policies promoting special business-related local initiatives, including cross-municipal initiatives and initiatives undertaken in cooperation with organisations, foundations, etc.

(2). The said amounts shall be applied to the development and expansion based on local conditions of employment rehabilitation and other business-related measures, e.g., by making offers available through special houses or centres accommodating a natural catchment area in terms of employment, and the development of new offers and new job categories for persons whose capacity for work is restricted or who are otherwise finding it difficult to gain a foothold on the labour market. In addition, the funds may applied towards upgrading and continuing education/training of employees, evaluation and communication in the course of a development project.

(3). Within the general framework set out by the municipal authority for the preventive labour market measures, the coordination committee shall specify the objects to which the funds will be allocated. The municipal authority shall create a basis for the solution of this task by the coordination committee. The municipal authority shall implement the committee's decision as to the use of the funds. Administration, accounting, etc., shall be the responsibility of the municipal authority. In case of any disagreement between the coordination committee and the municipal authority as to whether the use of the funds is within the general framework, the funds shall not be used.

(4). Information on the use of the funds shall be given through the coordination committee's annual report to the municipal authority and to the Council Responsible for Social Initiatives on the Inclusive Labour Market. The Council Responsible for Social for Initiatives on the Inclusive Labour Market shall collect and communicate the experience of the individual committees.

(5). The Minister for Social Affairs shall lay down rules governing the allocation of funds as between the coordination committees, governing the reversal of any unused funds and on the carry-forward of any unused funds to future financial years as well as the administration of and accounting, etc., for the allocated funds.

48. The municipal and the county authorities may arrange work experience and readiness courses as well as induction projects.

49(1). The municipal authority shall organise the rehabilitation, including the pre- rehabilitation, ensuring that the shortest possible period is required for completion, while at the same time addressing the needs of the rehabilitee.

The period during which rehabilitation allowance is payable to the rehabilitee shall not exceed five years. Any education/training programme included in the rehabilitation plan shall be completed within the standard programme duration. Any extension of the period during which the rehabilitee is receiving rehabilitation allowance shall be subject to the conditions set out in section 56, below.

(2). Where the rehabilitee's capacity for work is substantially restricted, and where the rehabilitee's personal qualifications, interests and abilities clearly call for a long further education, the municipal authority may plan a rehabilitation period involving the payment of rehabilitation allowance for more than five years.

50(1). Once the employment objective has been clarified, the municipal authority shall draw up an employment plan in cooperation with the rehabilitee, stating targets, time frame and contents. In the case of employment rehabilitation, the plan shall further describe the participation by the enterprise in the rehabilitation process and the subsidy granted by the municipal authority.

(2). The employment plan may include one of more of the following elements:

(i) Testing of working capacity

(ii) Training or instruction

(iii) Any necessary preparatory learning

(iv) Courses and projects

(v) Education/training

(3). The employment plan shall give a description of the individual elements. The plan shall be feasible in terms of the rehabilitee's qualifications, skills and interests as well as his/her prospects of being admitted to an education/training institution and of finding permanent employment.

(4). The municipal authority shall revise the employment plan in case of any changes of the individual or general conditions for its completion.

51(1). The municipal authority shall pay a rehabilitation allowance under section 52, below, when a rehabilitation programme has been implemented, including employment rehabilitation subject to a specific employment plan. Under the employment rehabilitation scheme the employer shall pay wages at trainee or apprentice level to the rehabilitee during education/training periods, and wages according to the rehabilitee's work performance during training or instruction periods. The amount of wages paid will be deducted from the rehabilitation allowance, cf. section 58, below. In connection with training and instruction, the wages paid by the private employer shall generally amount to at least 50 per cent of the rehabilitation allowance calculated for the full rehabilitation period. Provided always that rehabilitees who are suffering from major mental, physical or social problems, and who are therefore offering a very limited work performance may continue to receive training or instruction in a private enterprise without receiving wages. In exceptional cases, any such period without wages may be extended by up to one year if there are prospects of the rehabilitee obtaining employment in the longer perspective. During the remainder of the rehabilitation period any wages paid by the private employer shall generally amount to 50% of the rehabilitation allowance.

(2). The allowance shall be payable by the municipal authority

(i) by way of full or partial wage subsidies to the employer if the rehabilitee is undergoing training or instruction under section 60, below; and

(ii) by way of financial support in connection with setting up in business as self-employed, cf. section 65, below.

(3). A rehabilitee whose living expenses are met under any another legislation is not entitled to receive a rehabilitation allowance at the same time.

(4). A young school-leaver rehabilitee whose costs of living may be covered under the normal support schemes, e.g. the Danish State Education Grant and Loan Scheme, will only be eligible for rehabilitation allowance if his/her working capacity is substantially restricted or if his/her employment opportunities are particularly restricted on any other grounds.

52(1). Rehabilitation allowance shall be calculated as a monthly amount based on the highest rate of unemployment benefit under section 47 of the Act on Unemployment Insurance, etc.

(2). A rehabilitee under 25 will be paid one-half of the amount referred to in subsection (1) hereof, which will be payable until the end of the month of his/her 25th birthday.

(3). Provided always that a rehabilitee under 25 will be paid a rehabilitation allowance under subsection (1) hereof if

(i) he/she has dependent children living at home; or

(ii) he/she had been earning an income qualifying for the highest rate of sickness benefits.

(4). A person who is receiving an allowance under subsection (2) hereof, and who is subject to a verifiable duty to maintain a child, will be paid a monthly supplement corresponding to the amount of maintenance as ordered, subject to a maximum of the standard amount. If the amount of maintenance has been advanced by the time of payment of the allowance, such supplement shall be applied towards a reduction of the maintenance debt. The allowance including the supplement shall not exceed DKK 9,317.00.

53. The rehabilitee is only entitled to a rehabilitation allowance if he/she is complying with the employment plan.

54. In case of any short-term suspension of the rehabilitation programme which is of no importance to the completion of the employment plan in terms of objectives or content, the rehabilitee will still be entitled to receive the allowance.

55. The rehabilitee will retain the rehabilitation allowance where he/she is entitled to absence with leave due to pregnancy, maternity/paternity or adoption subject to the provisions of the Act on Equal Treatment of Men and Women (Employment and Maternity/Paternity Leave, etc.).

56. The municipal authority may extend the period during which the rehabilitee is eligible for rehabilitation allowance -

(i) if the rehabilitee is unable to complete the employment plan due to restricted physical or mental capabilities or other exceptional factors; or

(ii) if completion of the employment plan by the rehabilitee is temporarily delayed on grounds of illness, taking care of sick children or children with impaired physical or mental capabilities, maternity/paternity, lack of child-care facilities or specific social events.

 

57. The rehabilitee shall not hold any other job while completing the employment plan. Provided always that the municipal authority may allow the rehabilitee to do a limited amount of other work subject to the employment plan not being interfered with by such work.

58(1). The municipal authority shall reduce the rehabilitation allowance by

(i) the amount of wages paid to the rehabilitee as a trainee or apprentice or during instruction periods, subject to deduction of labour market contribution; and

(ii) income from any other work, subject to a maximum amount of DKK 12,000 per year.

(2). For the purpose of defining what is meant by income from work, the rules specified under section 58 of the Act on Unemployment Insurance, etc., shall be applied.

59(1). The municipal authority shall reduce the rehabilitation allowance by any income from periodic payments under insurance policies or pension schemes, including periodic payment of compensation for loss of working capacity under the Act on Insurance against the Consequences of Industrial Injuries. Any such income shall only be deducted in the event that they exceed the previous level of the rehabilitee's income from work, inclusive of the rehabilitation allowance.

(2). The Minister for Social Affairs shall lay down rules governing the way in which previous income from work is to be calculated and adjusted, etc.

60. Rehabilitees may be offered instruction or education/training with private- or public-sector employers subject to the payment of wages under section 61, below, where special factors warrant employment rehabilitation with wage subsidies. It is a condition that the rehabilitee

(i) is above the usual age for students;

(ii) has previously had an attachment to the labour market; or

(iii) has a dependent spouse or children.

61. As a minimum the employer shall pay to the rehabilitee an amount corresponding to the minimum wage under the terms of the collective agreement for the occupation concerned or the usual wage payable for similar work.

62(1). The municipal authority shall pay a wage subsidy to the employer in respect of the minimum wage under the terms of the collective agreement for the occupation concerned or the usual wage payable for similar work, plus any employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP), etc.

(2). For education/training programmes, the subsidy shall correspond to the difference between the wages for trainees/apprentices under the terms of collective agreements and the minimum wage payable under the terms of the collective agreement for the occupation concerned or the wage usually payable for similar work, plus any employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP), etc.

(3). In the case of any other training or instruction the subsidy shall amount to the difference between the wage corresponding to the work performance of the rehabilitee and the minimum wage under the terms of the collective agreement for the occupation concerned or the wage usually payable for similar work, plus any employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP), etc. Provided always that, as a general rule, the total amount of subsidy payable to private-sector employers shall not exceed 50% of the wage paid during the rehabilitation period.

(4). Provided always that the subsidy under subsections (2) and (3) hereof may correspond to the full amount of the minimum wage under the terms of the collective agreement for the occupation concerned or the wage usually payable for similar work, plus any employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP), etc., where employment is offered by public-sector or other comparable employers.

(i) employment is offered by public-sector or other comparable employers; or

(ii) employment is offered by private-sector employers, and special factors affect the rehabilitee's situation.

(5). Provided always that for up to one year subsidies under subsections (2) and (3) may correspond to the minimum wage under the terms of the collective agreement for the occupation concerned or the wage usually payable for similar work, plus any employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP), etc., where employment is being offered by private-sector employers, and the work performance of the rehabilitee is very limited due to major mental, physical or social problems. In exceptional cases the said period may be extended by up to one year if it is deemed likely that the rehabilitee will be able to obtain employment in the longer perspective. In the case of longer rehabilitation periods the total subsidy shall generally not exceed 50 per cent of the wage payable during the rehabilitation period.

63(1). During the rehabilitation period, including pre-rehabilitation, and if the rehabilitee is receiving a living allowance under any other legislation, the municipal authority may award benefits towards any extra costs arising as a result of the education/training programme or as a result of restricted physical or mental capabilities.

(2). Provided always that rehabilitees shall be required to pay an initial amount of DKK 200 per month towards travel costs, unless such costs arose as a result of restricted physical or mental capabilities.

(3). The municipal authority may calculate any benefits towards education/training expenses for textbooks and other teaching material on the basis of the average level of expenses for the relevant education/training programme as applicable to the individual institution.

64. The municipal authority shall award benefits towards any necessary extra housing costs incurred due to restricted physical or mental capabilities if the rehabilitee is receiving a 50% rehabilitation allowance under section 52(2), above.

65(1). The municipal authority may provide assistance to a rehabilitee by way of grant or interest-free loan to set up in business as self-employed if he or she holds the necessary skills and business qualifications to run the enterprise, and if any such assistance is deemed likely to enable the rehabilitee to provide for him/herself and his/her family.

(2). The municipal authority shall provide such assistance by way of interest-free loan where this is deemed reasonable in consideration of the rehabilitee's future employment prospects.

(3). In addition, the municipal authority may provide financial support for a short-term period, usually not exceeding 6 months.

(4). Where possible, any loan granted under subsection (2) hereof shall be secured by a registered charge.

66(1). The municipal authority is responsible for ensuring that the enterprise is established on a sound commercial basis.

(2). During the period when financial support is paid, the municipal authority shall keep the matter under review, thereby ensuring that the conditions for the support are still satisfied.

67. The municipal authority may remit a loan if the rehabilitee is financially incapable of repayment.

68(1). The county authority shall assist the municipal authorities in their rehabilitation initiative by making offers available to persons with restricted working capacity who are not capable of rehabilitation by means of municipal rehabilitation activities. In this connection, the county authority shall provide counselling, cf. section 69 of the Social Assistance Act.

(2). County authority offers may include testing of working capacity, work experience or readiness activities, instruction and education/training. The county authority may organise the rehabilitation programme as employment rehabilitation or other categories.

(3). Upon recommendation by the municipal authority, the county authority shall decide upon any offers available under subsection (1) hereof.

69(1). A production carried out in connection with the county authority rehabilitation initiative shall not subject other enterprises to unfair competion.

(2). The Association of County Councils shall draft guidelines for calculation criteria for the production in connection with the county authority rehabilitation initiative.

Part 7
Flexible working arrangements and sheltered employment with wage subsidy, etc.

70(1). The municipal authority shall ensure that persons under 65, or - for persons who had attained the age of 60 on or before 1 July 1999 - 67, with permanently restricted working capacity are given the opportunity of finding employment with private- or public-sector employers in

(i) flexible working arrangements under section 71, below; and

(ii) sheltered employment with wage subsidy under section 75, below.

(2). In pursuance of Denmark's international commitments, the Minister for Social Affairs is authorised to lay down rules specifying that within certain occupations it is not possible to employ persons under subsection (1) hereof.

(3). The municipal authority shall offer jobs under subsection (1) hereof. The county authority may offer jobs in its capacity as employer or subject to agreement thereon with the municipal authority.

71. The municipal authority shall ensure that persons who are not in receipt of anticipatory pension under the Social Pensions Act, and who cannot obtain or maintain employment on normal terms on the labour market are given the opportunity of finding employment under flexible working arrangements. The possibilities of obtaining employment on normal terms through rehabilitation must be exhausted before employment with flexible working arrangements can be made available.

72(1). The employer shall pay wages to the person employed subject to flexible working arrangements.

(2). The municipal authority shall grant the employer a wage subsidy. The amount of subsidy shall be 1/3, 1/2 or 2/3 of the wages depending on the extent of the loss of working capacity.

(3). The subsidy shall be calculated in proportion to wages plus expenses for employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP) and any other employer contributions. The subsidy shall not exceed 1/3, 1/2 or 2/3 of the minimum wage under the terms of the collective agreement for the occupation concerned or of the normal wage for similar work, plus expenses for employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP) and any other employer contributions.

(4). The subsidy referred to under subsection (3) hereof shall be reduced by the amount to which the employer is entitled pursuant to the Act on Benefits in case of Sickness or Maternity. The Minister for Social Affairs is authorised to lay down rules to this effect.

73(1). When the municipal or the county authority has offered a job subject to flexible working arrangements, the wage and other working conditions, including working hours, shall be specified, generally subject to the terms of the collective agreement applicable to the occupation, including the social chapters. In the case of employment in an occupation for which no collective agreement is available, the collective agreement applying to comparable fields shall apply. The specification of wage and other working conditions skall take place in consultation with the unions.

(2). The municipal and the county authority shall offer full-time employment under flexible working arrangements unless the employee prefers part-time employment.

73a. Persons employed subject to flexible working arrangements shall retain the right to receive a wage subsidy in case of relocation to another municipality.

Unemployment allowance

74(1). In case of unemployment through no fault of their own, persons employed subject to flexible working arrangements under section 71, above, for a continuous period of 12 months will be eligible for payment of an allowance by the municipal authority. The allowance shall be payable regardless of any income or property of the recipient and his/ her spouse.

(2). The allowance shall amount to 82 per cent of the maximum amount of unemployment benefits, cf. section 47 of the Act on Unemployment Insurance, etc. Provided always that the maximum amount payable shall correspond to the average amount paid to the recipient during the previous three months by way of wages or benefits in pursuance of the Act on Benefits in case of Sickness or Maternity.

(3). To be eligible for payment of unemployment allowance the recipient must qualify for employment subject to flexible working arrangements, and must not have been given an offer of suitable employment subject to flexible working arrangements.

(4). The unemployment allowance shall be reduced by any amount received by the employee from his/her employer or from the Employees' Guarantee Fund on account of the termination of employment.

(5). The Minister for Social Affairs shall give notice of the monthly amounts payable under subsection (1) hereof.

74a(1). Persons who have been selected for a job subject to flexible working arrangements under section 71, above, will be paid an allowance for the period elapsing until employment subject to flexible working arrangements has been found.

(2). Eligibility for unemployment allowance following selection shall be subject to the person in question satisfying, at the time selection, one of the following requirements:

(i) would be eligible for benefits under the Act on Benefits in case of Sickness or Maternity;

(ii) is in receipt of sickness benefits;

(iii) is in the process of rehabilitation under an employment plan.

74b(1). Persons in employment subject to flexible working arrangements are entitled to unemployment allowance while taking a holiday, for the following number of days and periods:

(i) If employment took place between 2 May and 31 July (incl.) in a given holiday year, the person is entitled to 15 days' allowance in the current as well as in the following holiday year.

(ii) If employment took place between 1 August and 31 December (incl.) in a given holiday year, the person is entitled to 10 days' allowance in the current holiday year and 15 days' allowance in the following holiday year.

(iii) If employment took place between 1 January and 1 May (incl.) in a given holiday year, the person is entitled to five days' allowance in the current holiday year and 15 days' allowance in the following holiday year.

(iv) Deductions shall be made in the number of days of eligibility for unemployment allowance in a given holiday year under paragraphs (i)-(iii) to the extent that the person qualifies for holiday with holiday allowance or pay for the same holiday year.

(2). The unemployment allowance shall be payable subject to the rules laid down in section 74, above. Provided always that deductions shall not be made by any amount under section 74(4), above.

75. The municipal authority shall offer sheltered employment with wage subsidy to a person receiving anticipatory pension under the Social Pensions Act if the person in question is unable to maintain or obtain employment working reduced hours subject to normal conditions on the labour market.

76(1). The employer shall pay the wages of the employee.

(2). The municipal authority shall pay a wage subsidy to the employer. The subsidy shall be calculated on the basis of the wage plus expenses for employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP) and any other employer contributions. The subsidy shall amount to 2 of the wage paid by the employer, but not exceeding 1/6 of the minimum wage under the terms of the collective agreement for the occupation concerned or of the normal wage for similar work, plus expenses for employer contributions to the Danish Labour Market Supplementary Pension Scheme (ATP) and any other employer contributions.

77. When the municipal or county authority has offered sheltered employment with wage subsidy, the wage and other working conditions, including working hours, shall be specified by agreement between the employer and the employee. Such specification shall be made in consultation with the unions.

Part 8
Tools and equipment

78(1). The municipal authority may provide assistance to a person with a restricted working capacity who is employed or is to be employed on the labour market, towards tools and equipment and towards short-term courses where such assistance will significantly improve the opportunities of that person of maintaining or obtaining employment. Also, it is a condition that such tools or equipment compensate for the recipient's restricted working capacity.

(2). The municipal authority shall provide assistance under subsection (1) hereof where any assistance provided hereunder or under any other statute is not sufficient to compensate for the recipient's restricted working capacity.

(3). The municipal authority shall provide assistance under subsection (1) hereof regardless of any income or property owned by the claimant and his/her spouse.

Part 9
Contributions to the Labour Market Supplementary Pension Scheme (ATP)

79(1). The municipal authority shall pay contributions under the rules laid down in the Act on the Labour Market Supplementary Pension Scheme for any person between the ages of 16 and 64, but for any person who had attained the age of 60 on or before 1 July 1999, between the ages of 16 and 66, who is receiving assistance under sections 25 and 36 and section 52(1), but cf. subsections (2) and (3) hereof.

(2). For any person receiving assistance under sections 25 or 36 it is a condition of payment of ATP contributions that the recipient had been receiving assistance under one of these sections for a continuous period of 6 months.

(3). For any person receiving assistance under sections 25, 36 and 52(1) it is a condition of payment of ATP contributions that the monthly amount on the basis of which the ATP contribution is calculated is not less than DKK 9,317 for a person with dependent children and not less than DKK 6,998 for any other person. The municipal authority shall not pay ATP contributions if the assistance is subject to a duty of repayment under section 93, below.

80(1). The amount on the basis of which the ATP contribution is calculated is the amount calculated subject to the deductions provided for in sections 30-33, 39, 40, 58 and 59.

(2). Any person for whom the municipal authority is paying contributions under section 79, above, shall pay 1/3 of the contribution. The said proportion of the contribution shall be withheld from the payment of the assistance on which the contribution is based. The municipal authority shall pay 2/3 of the contribution.

(3). The Minister for Social Affairs is authorised to lay down rules governing the payment of contributions upon the recommendation of the Labour Market Supplementary Pension Fund.

80a(1). For any person receiving assistance under sections 25, 36 and 52(1) and who is paying ATP contributions under section 79, above, a special pension contribution shall be payable, representing the amount stipulated under section 17f(3) of the Act on the Labour Market Supplementary Pension Scheme.

(2). The Minister for Social Affairs shall lay down detailed rules governing payments and reports under subsection (1) hereof upon the recommendation of the Trustees of the Labour Market Supplementary Pension Fund.

(3). If the special pension contribution remains unpaid after the due date, the provisions of section 17(2)-(5) and (7) of the Act on the Labour Market Supplementary Pension Scheme shall apply, mutatis mutandis.

Part 10
Assistance in special cases

81. The municipal authority may provide assistance towards reasonable individual expenses incurred by a person due to a change of circumstances if the payment of such expenses by the person concerned would seriously reduce the possibilities of that person and his/her family of providing for themselves in future. Normally assistance shall only be granted if the expense has arisen as a result of unforeseeable needs. Provided always that, having considered the individual circumstances of each case, the municipal authority may exceptionally cover foreseeable expenses where the payment of such expenses is of vital importance to the status of the person concerned or his/her family.

82. The municipal authority may provide assistance towards any health care expenses, medicine, dental treatment, etc., which are not covered under any other legislation if the claimant is financially incapable of paying such expenses. Assistance shall only be granted if the treatment is necessary and reasonable on health grounds. Only exceptionally will assistance be provided towards health care expenses outside the national health system. A condition of the payment of any such expenses would be that no facilities exist within the national health system, and that in each specific case the treatment is reasonable on health grounds.

83(1). The municipal authority may provide assistance towards expenses incurred in connection with the claimant's exercise of access rights to his/her own children under 18 who are not living with the claimant. It is a condition of assistance being provided hereunder that the claimant is financially incapable of paying the said expenses.

(2). The municipal authority may provide assistance towards travel costs for the purpose of maintaining contact with children who have been removed to another country without the consent of the custodial parent. It is a condition that the matter has been reported to the Danish police, and that the municipal authority has presented the case to the Ministry of Foreign Affairs. It is also a condition that the custodial parent is financially incapable of paying the said costs.

84. The municipal authority may provide assistance towards the expenses of maintaining a child where upon the death of the custodial parent custody has been awarded to one or more persons who are not subject to a duty to maintain the child. It is a condition that the child's income, including special child benefits under the Act on Child Benefits Act and advance payment of child maintenance, is not sufficient to cover the necessary expenses for maintaining the child.

85(1). The municipal authority may provide assistance for any relocation for the purpose of improving the housing or employment situation of the claimant or his/her family. It is a condition that neither the claimant nor his/her spouse is financially capable of paying the expenses.

(2). If the claimant is moving to another country, it is a condition of assistance being provided by the municipal authority that the claimant is a national of or has a particular connection to the country in question, or that the claimant has been secured permanent employment opportunities in the said country.

Part 10 a
Assistance for surviving dependants

85a(1). Upon application the municipal authority shall pay a survivor's allowance subject to the rules laid down in subsections (2)-(9) hereof to any person whose husband/wife or cohabiting partner has died.

(2). Payment of the allowance shall be subject to the surviving dependant having cohabited with the deceased at a joint address in Denmark for the last three years immediately preceding the death.

(3). The maximum amount of the allowance is DKK 10,000, and it shall be payable to any dependent survivor whose estimated annual income does not exceed DKK 160,000. If the estimated annual income exceeds the amount set out in the first sentence hereof, the allowance will be reduced, and if the estimated annual income exceeds DKK 250,000, no survivor's allowance shall be payable.

(4). The calculation of the estimated annual income shall include the survivor's estimated personal annual income, including any amounts devolving on the survivor as a result of the death. In addition, any property or property rights of the survivor exceeding DKK 100,000, including any property rights vesting as a result of the death. Where there is no administration of the estate, any property and property rights belonging to the deceased and his/her surviving spouse exceeding DKK 100,000 will be included. The amounts to be calculated according to the second and third sentences hereof shall be included at 30 per cent.

(5). The allowance will be paid as soon as possible following the date of application.

(6). Where there are indications that the estimated annual income of the surviving dependant can only be established with considerable uncertainty, the dependant's allowance will be payable by an amount on account.

(7). In the case of persons who are subject to the rules set out in the Act on Payment of Property Taxes, the difference between the amount of allowance calculated under subsection (4) hereof and a calculation whereby the allowance is calculated subject to deductions of any property and property rights consisting of immovable property and serving as the survivor's dwelling may be granted by way of a loan subject to prior application. Any such loan will be granted subject to the rules provided for by the Act on Loans Granted for the purpose of Payment of Property Taxes.

(8). To the extent that it follows from Council Regulation No. 1408/71 of 14 June 1971 and the associated EEA Agreement, the provisions on survivor's allowance shall be dispensed with in respect of any persons covered by Danish social security legislation under this Regulation and the EEA Agreement.

(9). The Minister for Social Affairs shall lay down rules governing the definition of recipients, calculation of income and property, adjustment and subsequent of the allowance, including rules governing procedures in connection with the granting of loans, cf. subsection (7) hereof. In addition, the Minister for Social Affairs shall lay down rules governing the decision-making powers, etc., for persons covered by Council Regulation No. 1408/71 of 14 June 1971 and the associated EEA Agreement.

86-87. (Repealed).

Part 11
Payment of assistance

88. A person will not normally be given assistance covering expenses incurred prior to applying to the municipal authority for assistance.

89(1). Financial support will normally be payable as a monthly amount.

(2). The municipal autority may pay the assistance for short-term periods if there are reasonable doubts that the recipient will comply with the conditions for assistance throughout the period to be covered by the assistance.

90. Exceptionally, the muncipal authority may pay the assistance otherwise, including for short-term periods, if a person is deemed to be unable to administer cash amounts notwithstanding advice under section 7, above.

Part 12
Repayment

91. The municipal authority shall make decisions as to repayment

(i) where a person has knowingly failed to submit particulars to the municipal autority as required under section 92(4) of this Act of under section 11 of the Act on Legal Protection and Administration in Social Matters; or

(ii) where a person has received assistance under this Act improperly and acting in bad faith.

92(1). Any person receiving special benefits under section 34 to cover interest and repayments in respect of dwellings in absolute or cooperative ownership, shall repay such benefits. The same shall apply to any person receiving benefits for the payment of deposit or any other corresponding payment.

(2). Spouses shall be liable jointly and severally for any repayment claims under subsection (1), first sentence, hereof. This shall apply whether the support has been paid to one or both spouses, and whether the dwelling is the property of one or both spouses.

(3). The Minister for Social Affairs shall lay down rules governing repayments under subsection (1), first sentence, hereof.

(4). A person having received benefits for the payment of a deposit subject to a duty of repayment under subsection (1), second sentence, hereof shall give the municipal authority notice of any deposit or other similar amount being released upon termination of a lease, vacation, etc.

93(1). The municipal authority may decide to claim repayment of any assistance granted

(i) because the claimant has been reckless in the conduct of his/her financial affairs;

(ii) because the claimant has resigned from a job without good cause or has ceased to participate in an activation or other job creation measure;

(iii) because the claimant has been dismissed on the ground of his/her own conduct;

(iv) because the claimant has refused to accept an offer of suitable work, activation or other job measure;

(v) because the claimant or his/her spouse is involved in an industrial dispute; or

(vi) where at the time when assistance is applied for because of financial hardship, certain factors show that the claimant will be able to repay the assistance within a short period of time.

(2). On or before the date of payment of assistance, the municipal authority shall inform the recipient that the assistance is to be repaid and on what grounds.

(3). The municipal authority shall not require repayment under subsection (1) hereof of any assistance received by a person during activation under Part 4, above.

94(1). The municipal authority may decide to claim repayment where a person having received assistance is subsequently paid an amount of compensation, maintenance, etc., covering the same period and for the same purpose as the amount of assistance.

(2). The municipal authority shall not decide to claim repayment under subsection (1) hereof of any assistance received by a person during activation under Part 4, above.

(3). Also, the municipal authority shall not decide to claim repayment under subsection (1) hereof where compensation for loss of a person's working capacity is paid as a result of personal injuries under

(i) the Criminal Injuries Compensation Act;

(ii) the Act on Liability for Damages;

(iii) the Act on Insurance against the Consequences of Industrial Injuries, other than the cases covered by section 40(1) of that Act.

(4). The Minister for Social Affairs shall lay down rules specifying the other cases in which repayment under subsection (1) hereof shall not be claimed in the case of compensation for loss of a person's working capacity being paid as a result of personal injuries.

95(1). The municipal authority shall enforce any claim for repayment by an arrangement to be made on the basis of what the person in question can pay without becoming unable to provide for him/herself or his/her family.

(2). If a person who is able to pay fails to comply with an arrangement subject to subsection (1) hereof, the municipal authority may collect the debt in pursuance of the rules governing the collection of unpaid personal taxes.

(3). Where assistance has been paid subject to a repayment duty, the municipal authority will be subrogated, to the extent of an amount corresponding to the assistance subject to a duty of repayment, to the claim for payment of any overpaid tax and labour market contributions with the addition of compensation and interest and repayment under section 55 of the Income Tax Act. This applies even if an arrangement has been arrived at under subsection (1) hereof.

(4). The claim for repayment shall lapse after five years following the termination of the assistance without any financial possibility of enforcing the claim under the rules provided for under subsections (1)-(3) hereof.

96. Where a person having received assistance under Parts 4 and 6, above, has failed to pay for any day centre or club offer provided under the Social Assistance Act, the municipal authority may deduct future monthly payments therefor from any future assistance granted under Parts 4 and 6.

97(1). Where a person has been ordered under the legislation on the legal relationship between spouses or on the legal rights of children, to pay maintenance, etc., to another person who is receiving financial support, the public authorities will be subrogated to the claim against the maintenance debtor, to the extent of an amount corresponding to the financial support received, whether or not the maintenance duty under the rules of section 2, above, has lapsed.

(2). In addition, the public authorities will be subrogated to a claim for a maintenance order to be made or an amount of maintenance to be raised. In ordering or raising maintenance the authority in question may set aside any maintenance agreement deemed to have been made with a view to preventing any such subrogation by the authorities.

Part 13
Complaints procedure

98. Unless otherwise provided, decisions made by municipal or county authorities under this Act may be brought before the social complaints board subject to the provisions of Part 10 of the Act on Legal Protection and Administration in Social Matters. In reviewing a complaint against a decision by a municipal authority about payment of compensation under section 38, above, the board only has the power to determine whether the decision complies with the guidelines established by the municipal authority.

Part 14
Finance, etc.

99(1). The municipal authority shall pay all expenses incidental to guidance and advice, handling and follow-up of cases, drafting of action and employment plans, etc., and generally for administration, including medical reports, etc.

(2). The county authority shall pay all expenses incidental to the handling of cases, administration, including guidance and consultancy services.

100(1). The State shall reimburse 50% of the muncipal authority's expenses incidental to assistance and wage subsidies under Part 4, above.

(2). Within a given amount made available, the State shall reimburse 50% of a municipal authority's operating costs in connection with activation offers under section 16(2)(i), (iii)-(v), (vii) and (viii). The same shall apply to expenses for compensation incurred under section 38. The amount available shall be fixed at DKK 12,221 per year multiplied by the number of persons covered by Part 4, calculated as the number of man years during the accounting year.

(3). Within the amount set out in subsection (2) hereof, the State shall reimburse 50% of the operating costs of a municipal authority in connection with training activities under section 12, above, including training activities for persons receiving cash benefits during pre-rehabilitation under section 47, above, unless the training activity is financed under section 103(2) and (3), below.

101(1). The municipal authority shall pay a premium of DKK 50,000 to any public employer who employs a cash benefits claimant in a permanent full-time job subject to wage and employment conditions under the terms of a collective agreement, cf. section 48a of the Act on an Active Labour Market Policy.

(2). The Minister for Social Affairs shall lay down rules governing the scheme, including administration and payment of premium, and governing the employer's duty to notify the municipal authority of any unfair or summary dismissal.

(3). The State shall reimburse all expenses incurred by a municipal authority under subsection (1) hereof.

102. Repealed.

103(1). The State shall reimburse 50% of the expenses incurred by a municipal authority in connection with rehabilitation, cf. sections 52 and 62-65, above, and with tools and equipment under Part 8, above.

(2). The municipal and the county authority shall each pay 50% of the operating costs for work experience and readiness courses and induction projects under section 48, above.

(3). Towards the expenses for county authority initiatives under section 68(1), first sentence, above, the municipal authority shall pay a tariff to be fixed for one accounting year at a time on the basis of the budgets for the initiatives. The tariff shall amount to 50% of the expenses.

104(1). The State shall reimburse 100% of the expenses incurred by a municipal authority for subsidised jobs subject to flexible working arrangements under section 72, above.

(2). The municipal authority shall pay all expenses for the unemployment allowance payable under sections 74 and 74a, above. The State shall reimburse 50% of a municipal authority's expenses for the unemployment allowance payable under section 74b, above. The State shall reimburse 50% of the expenses incurred by a municipal authority for subsidised sheltered employment under section 76, above.

105(1). The State shall reimburse a municipal authority's expenses for ATP contributions under this Act.

(2). The State shall pay all expenses incidental to the support of Danish citizens abroad under section 6, above.

106. The State shall pay 50% of a municipal authority's expenses for special benefits under Part 10, above. The State shall pay 50% of a municipal authority's expenses for survivor's allowance under Part 10 a, above.

107(1). Subject to the rules set out in subsections (2)-(4) hereof, the State shall pay all expenses for a non-citizen holding a residence permit under

(i) sections 7-8 of the Aliens Act;

(ii) section 9(2)(ii) of the Aliens Act;

(iii) section 9(2)(iv) of the Aliens Act, immediately following the grant of a residence permit under section 9(2)(ii) of the Aliens Act;

(iv) section 9(1)(ii)-(iv) of the Aliens Act, on account of a connection to a Danish resident when that person has been granted a residence permit under one of the provisions referred to in paragraphs (i)-(iii) hereof, or when the connection may be referable to such a person;

(v) section 9(2)(iv) of the Aliens Act when the permit has been granted to a person aged 18 or over whose father or mother has been granted a residence permit under one of the provisions referred to in paragraph (i) hereof;

(vi) section 9(2)(iv) of the Aliens Act when the permit has been granted to a spouse or child of a person holding a residence permit as stated in paragraphs (ii) or (iii) hereof;

(vii) section 9(2)(iv) of the Aliens Act when the residence permit has been granted to a non-citizen seeking asylum;

(viii) section 9(2)(iv) of the Aliens Act when the permit has been granted because of a connection to a minor non-citizen seeking asylum who has been granted a residence permit under sections 7 or 9(2)(iv) of the Aliens Act;

(ix) section 9(2)(v) of the Aliens Act; or

(x) section 9(2)(vi) of the Aliens Act.

(2). The State shall pay all expenses incidental to assistance provided under Part 4, above, but cf. section 100(2), Parts 6-8, above, but cf. subsection (4) hereof, and Part 10, above, for all non-citizens listed in subsection (1) hereof who had been granted a residence permit prior to 1 January 1999, during the first 12 years of the date of the permit.

(3). Notwithstanding the provisions of subsection (2) hereof the State shall pay a municipal authority's expenses for

(i) non-citizens who are placed in residential care on grounds of substantially and permanently restricted capabilities until the person concerned has been providing for him/herself for a continuous period of two years; and

(ii) non-citizens, where the permit has been granted to a minor asylum seeker, subject to a maximum period until the 18th birthday of the minor, or until the lawful entry and residence of the parents of the minor into this country.

(4). The State shall reimburse to all non-citizens referred to in subsection (1) hereof who had been granted residence permits on or before 1 January 1999, for 12 years of the date of such permit, 75% of the expenses incurred by a municipal or county authority for the specialised rehabilitation initiative under section 68(1), first sentence, above.

108. The State shall grant an advance reimburse of all expenses by a municipal or county authority which are eligible for reimbursement under this Act.

108a. The municipality of residence is entitled to claim reimbursement from a former municipality of residence under section 9a of the Act on Legal Protection and Administration in Social Matters.

109(1). On 1 January every year adjustments shall be effected by the rate adjustment percentage provided for by the Rate Adjustment Percentage Act of the amounts set out in:

(i) sections 25, 26 and 28 on financial support and special assistance for certain groups of persons;

(ii) section 27(2) on support for families with dependent children under 18;

(iii) section 30 on income deductions for married couples subject to section 26(2);

(iv) section 31 on deductions for income from work, etc.

(v) section 36 on employment bonus and hourly bonus during activation;

(vi) section 52(4) on the limit for half rehabilitation allowance and bonus;

(vii) section 79(3) on minimum amounts for ATP contribution;

(viii) (Repealed);

(ix) section 100(2) on amounts available;

(x) (Repealed);

(xi) section 85a on survivor's allowance.

(2). The maximum hourly wage under section 35, above, shall be adjusted percentagewise in accordance with the average adjustment of public pay scales.

(3). The Minister for Social Affairs shall publish the adjusted amounts by executive order.

Part 15
Rules on pilot schemes

110. Upon application from a municipal or county authority the Minister for Social Affairs may allow the implementation of job creation pilot schemes departing from the rules provided for under this Act, with the exception of the rates set out in sections 25, 52 and 61. The Minister for Social Affairs shall publish any such permission by executive order.

Part 16
Commencement and transitional provisions

111. This Act shall come into force on 1 July 1998. Provided always that the date(s) on which section 16(2)(ii) and (iii), section 51(2) and sections 60-62 and 70 shall come into force shall be appointed by the Minister for Social Affairs.

112. The provision of section 108 shall be effective from the time of payment of advance reimbursement at the end of June 1998.

113. Persons under 25 who are receiving cash benefits under the provisions governing persons aged 25 and over of the Social Assistance Act at the time of commencement of this Act will retain the right to receive cash benefits subject to the provisions governing persons aged 25 and over as long as they continue to receive assistance on account of the change of circumstances due to which they are receiving assistance at the time of commencement of the Act.

114. Persons who are employed in sheltered jobs according to the 1/3 programme, cf. sections 91-95 of the Social Assistance Act at the time of commencement of this Act are secured as a minimum the income level provided for under article 74 of Circular dated 17 December 1986 on Provisions under the Social Assistance Act on County Authority Institutions, until termination of such employment. Similarly the employer will retain as a minimum the percentage wage subsidy so far granted for the purpose of the job until termination of the employment.

115. Individual jobs in sheltered employment for persons receiving social pensions, which were established prior to commencement of this Act, shall be financed under section 104, above.

116. Collection of due and payable repayments of loans granted under the previous rules provided under section 43(9), first sentence, of the Social Assistance Act, cf. Consolidated Act No. 110 of 26 February 1996 as amended, or under the rules provided under section 42(4), (7) and (8) of the Social Assistance Act, cf. Consolidated Act No. 171 of 25 March 1987 as amended, shall be subject to the rules governing collection of personal taxes.

117. The Minister for Social Affairs shall introduce proposed amendments of sections 71-74 by the end of 2000.

117a. The Minister of the Interior shall lay before the Danish Parliament proposed amendments of sections 86 and 87 before the end of the parliamentary year 1998-99.

118. This Act shall not extend to the Faeroe Islands and Greenland.

Act No. 803 of 24 October 1997 contains the following commencement provision:

(1). This Act shall come into force on the day following advertisement in the Law Gazette, but section 8 not until 1 July 1998.

Act No. 980 of 17 December 1997 contains the following commencement provisions:

(1). This Act shall come into force on 1 July 1998, ...

Act No. 1077 of 29 December 1997 contains the following commencement and transitional provisions:

This Act shall come into force on 1 January 1998.

(1). ...

(2). ...

(3). Persons having been awarded an entrepreneurship allowance prior to the commencement date of the Act may be paid the entrepreneurship allowance subject to the rules in force until that date.

Act No. 1108 of 29 December 1997 contains the following commencement provision:

... and section 2 shall come into force on 1 July 1998.

Act No. 1112 of 29 December 1997 contains the following commencement provision:

(1). ...

(2). Section 2 shall come into force on 1 July 1998.

Act No. 262 of 6 May 1998 contains the following commencement provision:

(1). ...

(2). Section 2 shall come into force on 1 July 1998.

Act No. 345 of 15 June 1998 contains the following commencement provision:

(1). ...

(2). Section 2 shall come into force on 1 July 1998.

Act No. 468 of 1 July 1998 contains the following commencement provision:

(1). This Act shall come into force on the day following the advertisement in the Law Gazette. Provided always that sections 2-7 shall not come into force until 1 January 1999.

(2). This Act shall apply to the collection of special pension contributions as from the income year 1999, cf. subsections (3) and (4) hereof. Section 1(ii)-(iv), sections 8 and 11 shall apply to the collection of temporary pension contributions as from the income year 1998. Section 1(i) and section 12(i) shall apply to any payments into the Danish Labour Market Supplementary Pensions Scheme made after 31 July 1998.

(3). ...

(4). ...

Act No. 474 of 1 July 1998 contains the following commencement provisions:

58. This Act shall come into force on 1 January 1999, ...

This Act shall not extend to the Faeroe Islands and Greenland.

Act No. 1037 of 23 December 1998 contains the following commencement proceedings:

(1). This Act shall come into force on 1 January 1999.

(2). ...

Act No. 1038 of 23 December 1998 contains the following commencement provisions:

This Act shall come into force on 1 January 1999.

Act No. 1040 of 23 December 1999 contains the following commencement provisions:

(1). This Act shall come into force on 1 January 1999.

(2). Persons under 25 who are eligible for cash benefits under section 25(3), second sentence, at the time of commencement of this Act, due to a change of circumstances, cf. section 11(2)(i), will remain entitled to receive cash benefits under the existing rules.

Act No. 117 of 2 March 1999 contains the following commencement provisions:

(1). This Act shall come into force on the day following the advertisement in the Law Gazette and shall be effective from 1 July 1998.

...

Act No. 288 of 12 May 1999 contains the following commencement provisions:

...

(4). Section 13(i) shall come into force following the advertisement in the Law Gazette.

...

Act No. 353 of 2 June 1999 contains the following commencement provisions

15(1). This Act shall come into force on 1 January 2000.

(2). ...

Act No. 965 of 20 December 1999 contains the following commencement provisions:

(1). This Act shall come into force on 1 January 2000, but paragraphs (vii) and (viii) shall be effective from 1 January 1999.

(2). Persons selected for jobs with flexible working arragements in the period from 1 October 1999 fro 31 December 1999 are eligible for unemployment allowance under section 1(iii) for any part of a period not exceeding 3 months following selection which is after the date of commencement of the Act.

(3). Persons who have held jobs with flexible working arrangements for less than one year at the time of commencement of this Act are eligible for unemployment allowance while taking a holiday, subject to the provisions of section 1(iii) for such period following the employment as is after the date of commencement of the Act.

Act No. 1114 of 29 December 1999 contains the following commencement provisions:

This Act shall come into force on the day following the advertisement in the Law Gazette.

Act No. 1115 of 29 December 1999 contains the following commencement provisions:

This Act shall come into force on 1 April 2000 and shall be effective for the cases in which the death occurs on or after 1 April 2000.

Act No. 1125 of 29 December 1999 contains the following commencement provisions:

8. This Act shall come into force on 1 January 2000.

Act No. 57 of 25 January 2000 contains the following commencement provisions:

(1). This Act shall come into force on 1 February 2000.

(2). ...

(3). Advance audit and contributions to the municipal authorities in respect of increased expenses on account of this Act for February and March 2000 shall be payable in connection with the settlement of the balance to the municipal authorities for the first quarter of 2000.

Act No. 207 of 27 March 2000 contains the following commencement provisions:

(1). ...

(2). ...... and section 2 shall come into force on 1 April 2000.

HENRIK DAM KRISTENSEN

/ Eva Pedersen