Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Social Security (Minimum Standards) Convention, 1952 (No. 102) - Denmark (Ratification: 1955)

Other comments on C102

Observation

Direct Request

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The Committee takes note of the information provided by the Government in its detailed report on the Convention received in December 2011 and in the 39th annual report on the application of the European Code of Social Security.

Part VI. Employment injury benefit. (a) The Committee notes that the report does not include detailed information required by the report form under each Article of Part VI of the Convention and does not reply to questions raised in its direct request of 2011, but makes reference to previous reports where such information and replies were also lacking. The report mentions however the Consolidation Act No. 848 of 7 September 2009 on industrial injuries insurance, according to which the Danish industrial injuries insurance scheme is fully financed by the employers through the payment of premiums to the private insurance companies (covering accidents at work) and contributions to the Labour Market Occupational Diseases Fund (covering occupational diseases). The National Board of Industrial Injuries administers the scheme and makes the decisions on entitlement to benefits. In view of the complex structure of the scheme containing public and private agencies, the Committee would like the Government to include in its next report, in addition to information requested under Part VI, detailed information on how the Danish industrial injuries insurance scheme complies with the provisions of each Article of Part XIII (Common provisions) of the Convention. Please indicate, in particular, how private companies providing insurance coverage are being supervised by the public authorities and how representatives of the persons protected participate in the management of the scheme.

(b) With regard to the insurance against accidents at work, the report states that it covers consequences of accidents or injuries of duration of up to five days. Please explain how protection is ensured against accidents which cause absence from work of more than five days.

(c) The Committee asks the Government to calculate the replacement level of the employment injury benefit under Article 65 of the Convention, paying particular attention to the observance of recommendations mentioned below.

Part XI. Standards to be complied with by periodical payments. In its previous direct request, the Committee asked the Government to explain, with reference to the corresponding provisions of Article 65 of the Convention, the methodology used for selecting the standard beneficiary as the skilled manual male employee from the iron and metal industry and for determining his reference wage (in 2010 DKK 367,044), which is used for calculating the replacement rate of the sickness, maternity and unemployment benefits. In reply, the report states that the reference wage of a skilled manual employee is calculated on the basis of the average earnings on a yearly basis by weighing together the gross annual salary for workers and employees from which deductions are made for contributions to employer pension schemes, employee’s labour market contribution etc. The Committee is obliged to point out that this method of determining the reference wage does not correspond to the options foreseen in Article 65(6) of the Convention. Indeed, if it is determined on the basis of the average earnings of all workers and employees in the country, the resulting reference wage of the skilled manual male employee should amount to not less than 125 per cent of such gross average earnings, as indicated in Article 65(6)(d) of the Convention. If, on the other hand, the skilled manual male employee is selected from the iron and metal industry, his reference wage should be determined on the basis of the statistics on the actual rates of gross wages for normal hours of work paid out in the said industry in occupations requiring skilled manual labour. Article 65(6)(a) and (b) suggest in this case using the wage of a fitter or turner in the manufacture of machinery other than electrical machinery – the industry which, according to the current employment statistics, comprises the largest number of male employees in Denmark. It should also be recalled that in its 35th report on the Code in 2008 the Government stated that the iron and metal industry was no longer the biggest employer of male workers in Denmark and suggested using new methods of determining the reference wage for the purposes of the Code, which were discussed in detail at the expert meeting in Copenhagen, 25 June 2009. The Committee would be grateful if the Government would follow the recommendations of this meeting in calculating the replacement rate of the short-term benefits in its future reports. In particular, the Government is invited to show that the maximum limit for the benefits in question complies with the requirements of Article 65(3) of the Convention and to make the calculation of the replacement rate not on a yearly but on a monthly basis, as these benefits are paid monthly.