HR in a time of crisis

Times have changed in the HR departments of Danish companies. The effects of cost-cutting measures need to be felt immediately, and there is no time to wait for the long notice periods stipulated by the ordinary provisions of Danish employment law.  In light of these conditions, it is important that you are able to navigate safely through the legal universe.

The financial crisis has encouraged many companies to focus on fast-acting solutions that will quickly improve their liquidity. In particular, HR organisations are currently facing enormous challenges. This was the theme of the brunch seminar "HR challenges in a time of crisis" held simultaneously by Kromann Reumert’s Aarhus and Copenhagen offices in April 2009.

- "We have recently experienced a period of great labour shortage, and we also know that this crisis is not permanent. Companies are therefore interested in finding alternative solutions that will prevent or reduce the number of dismissals". This is how Mr Claus Juel Hansen, practicing lawyer and partner at Kromann Reumert, explains the dilemma that HR organisations are facing right now.

Part-time work, job-share arrangements, reductions in employee benefits, or ...?

The solution could be part-time hours, job sharing, or discontinued or reduced employee benefits; or perhaps a quite different solution is required. However, employers should consider that some of these changes will be deemed material changes to the employees’ terms of employment, and in the event of such changes each individual employee must be given a notice period for the changes that is of the same length as that required to terminate that employee's  employment.

- "For instance, it is possible to achieve savings in, or even call off, ordinary company events, or discontinue fruit arrangements and the like, but if you decide, for instance, to let the employees pay their own ADSL or mobile telephone expenses, this will be comparable to a reduction in their salary.  And that will constitute a material change in their terms of employment which will require notice to be given", says Ms Helene Amsinck, practicing lawyer and partner.