Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

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

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Part VI (Employment injury benefit), Article 36(3) of the Convention. Conversion of the periodical benefit into a lump sum. The Committee notes the Government’s reference in its report to the Government’s previous indications provided under Article 36(3) of the European Code of Social Security of the Council of Europe (Code) which has the same provisions on the conversion of periodical cash benefits due to employment injury into a lump-sum payment. In particular, in its 45th report of 2018 on the application of the Code, the Government indicates that different financial support measures are available to injured persons in addition to a lump-sum payment, which is provided to persons who: (a) have a loss of earning capacity for up to 50 per cent; or (b) have a loss of earning capacity above 50 per cent but requested a lump sum for the loss of earning capacity up to 50 per cent (section 27 of the Occupational Injury Insurance Act of 2017, No. 216). In particular, the Government indicates that injured persons may be entitled to various periodical cash benefits, including benefits provided under the sickness benefits scheme or unemployment benefits scheme. The Government points out that considering the different financial support measures available to injured persons under the social security system, the rules for the provision of lump-sum payments due to employment injury under section 27 of the Occupational Injury Insurance Act of 2017, No. 216, are in line with Article 36(3) of the Convention.

The Committee recalls that Article 36(3) of the Convention allows the conversion of a periodical payment in case of permanent incapacity for work into a lump sum only: (a) where the degree of incapacity is slight; or (b) where the competent authority is satisfied that the lump sum will be properly utilized. The Committee further recalls that periodical cash benefits which may be provided to injured persons in addition to a lump sum shall meet the requirements of Part VI of the Convention (including as regards the level of benefits, duration of payment and an absence of the qualifying period) to be considered for the purpose of the application of the Convention. The Committee therefore requests the Government to take the necessary measures to ensure that the provision of a lump-sum payment instead of periodical cash benefits due to employment injury under section 27 of the Occupational Injury Insurance Act of 2017, No. 216, is in conformity with Article 36(3) of the Convention.

The Committee is raising other matters in a request addressed directly to the Government.