European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
LBK nr 117 af 05/02/2025 – Bekendtgørelse af lov om godtgørelse og tilskud ved deltagelse i erhvervsrettet voksen- og efteruddannelse (particularly § 2–9 on eligibility, compensation and subsidies)
The Danish Act on Compensation and Subsidies for Participation in Vocational Adult Education and Training provides financial support to employees who participate in vocational training. The aim of the legislation is to facilitate access to upskilling, particularly for low-skilled workers, by reducing the financial barriers associated with participation in education.
Eligibility for support is conditional. Participants must be in employment as employees or self-employed and generally must not already have an education exceeding vocational level. In addition, the training programme must be approved under the scheme. The act provides two main forms of financial support:
(1) compensation for loss of income during participation in training; (2) subsidies covering costs such as transport, accommodation and subsistence.
Compensation is calculated with reference to the unemployment benefit rate and is intended to partly replace lost earnings. It may be paid either to the employer if wages are maintained during training, or directly to the participant if no wages are paid. The scheme is administered by the Employers’ Reimbursement Fund, which handles applications and payments as part of the implementation of the vocational adult education and training system.
The scheme is financed through statutory contributions paid by private and public employers to AUB, meaning that compensation and subsidies are funded collectively through the AUB system rather than directly by the individual employer whose employee participates in the training. While the scheme operates within a statutory framework overseen by public authorities, no provision has been identified in the Act that provides for direct state financing or state reimbursement of the compensation.
Employers play a central role in implementation, as compensation may be paid directly to them if they continue to pay wages during training periods. This creates an incentive for companies to support employee participation in vocational education and training, while participants may receive support directly if no wages are paid.
From a social partner perspective, the Act does not explicitly regulate the role of trade unions or employers’ organisations. However, the scheme reflects the Danish labour market model, where competence development and lifelong learning are supported through cooperation between the social partners and the state.
The Act forms part of the broader Danish system of vocational adult education and training (VEU), which provides education and training opportunities for adults at different levels and supports continuous skills development in line with labour market needs. The Act should be considered in conjunction with the Act on Labour Market Training Programmes (LBK nr. 616 of 03/06/2019), which regulates the provision and content of vocational adult education, including AMU courses. AMU (Arbejdsmarkedsuddannelser) courses are vocational adult education and training programmes aimed at adults who wish to acquire new skills, update their qualifications, or strengthen their position in the labour market. The courses are designed to meet current labour market needs and provide participants with job-relevant competencies within specific occupational areas.
While the present Act provides financial support for participation in training, the latter governs the actual training programmes. Together, these laws link financial support mechanisms with vocational training provision within the Danish VEU system.
Eurofound (2026), Denmark: Employers obligation to provide skill development plans or training, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/employers-obligation-to-provide-skill-development-plans-or-training/denmark
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