Employees' Guarantee Fund
What does it mean?
The Employees' Guarantee Fund (Lønmodtagerens Garantifond, LAG) is a statutory scheme that compensates employees when their employer becomes insolvent and cannot pay wages, holiday pay, notice pay or pension contributions owed.
Claims must be submitted within deadlines after bankruptcy declaration. The fund covers amounts up to defined limits per claim type and period.
LAG does not replace normal wage payment from a solvent employer — it is a safety net in bankruptcy. Employees should monitor employer financial health and act if pay is delayed.
If your employer enters bankruptcy: contact your union, file a claim with LAG promptly, register as unemployed and gather documentation (contracts, payslips, outstanding amounts).
Magnus Villumsen
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