Job rotation

The job rotation allowance is a subsidy, paid by the local job centre. It covers the employer's total salary and training costs, including the salary of the employee and the temporary worker when an employee participates in continuing training and an unemployed person is temporarily hired in place of the employee who is trained at the time; this person is called a temporary worker. The rules for the job rotation allowance ensue from sections 149-153 of the Act on Active Employment Initiatives (LAB) and sections 9,117-120 of the Executive Order on Active Employment Initiatives (BAB), as approved in 2019. Guidance Note No 10063 of 25 November 2019 includes further provisions and guidelines for the parties involved. The employment ministry is the authority issuing the relevant legal framework.

The job rotation allowance is paid to the employer and amounts to EUR 25.45 (DKK 189.51, 2019 level) for each hour when an employee is in continuing education and at the same time a temporary worker is employed. This is in accordance with the provisions of the so-called ‘hour-to-hour relationship’, as regulated in the guidance note). The amount is adjusted annually on 1 January and announced by the Danish Agency for Labour Market and Recruitment.

It is usually the employer who decides in which private or publicly offered continuing training the employee can participate. However, there are certain requirements:

1. There must be continuing training: following section 149 of the Act on Active Employment Initiatives (LAB) the employee (regardless of age) must obtain strengthened competences through continuing training for use in continuing his employment relationship with this current employer.
2. Periodic training must be temporary: at the beginning of the course it is assumed, that the employee returns to his workplace with improved skills after completing continuing training.
3. Continuing training must be publicly or privately offered: the participation must not be limited to employees in a particular company, or organisation. Thus, in-company training organised by an employer cannot be subsidised. It is important for persons outside the company to have equal access to participate in the training. If this is not the case, the continuing training does not qualify for the job rotation allowance; for example, the conditions are not met if a public or private employer arranges and conducts training exclusively for its own employees, which outsiders cannot access. Further, continuing training conducted for specific job tasks (e.g. by a supplier of machines or cleaning supplies, who conducts training for employees at a public or private workplace but for its own specific job tasks) also does not meet not the criteria for the job rotation scheme. The continuing training should help the employee who participates in it to acquire skills that are applicable also to other workplaces. However, the rules do not prevent continuing training from taking place extraordinarily with the employer. This could happen if a private or public employer buys all offered places on a training course offered publicly, so that everyone is able to register, but where it is agreed with the education institution that the training course takes place at a specific workplace for practical, transport or other reasons.
4. Continuing training must not be part of vocational training: the employer does not receive a job rotation allowance if the employee participates in vocational training in accordance with the Act on Vocational Training, including vocational training for adults (EUV), or the Act on Maritime Education, or it is continuing training, which, following a decision of the Board of Directors of the Employers' Reimbursement System (AUB), can be equated with vocational training.

The employer pays the cost of private continuing training and continuing training with user fees.

The employer cannot receive a job rotation allowance for the part of a continuing training course that consists of an internship, including an internship with the employer.

The following target groups can be employed as temporary workers in job rotation processes:

1. recipients of unemployment benefits;
2. recipients of cash benefits;
3. recipients of training aid;
4. transitional benefit recipients outside the induction programme;
5. recipients of self-support and repatriation allowance or transitional allowance covered by the self-support and return programme or the introduction programme;
6. sickness benefit recipients who are not in employment or self-employment;
7. persons in job clarification processes who are not in a job or running a self-employed business;
8. persons in resource flows;
9. young people not in employment, education or training (NEETs);
10. migrants and refugees.