Amendment of the Danish Act on Posted Workers

Published

Jun 10 2018

Written By

Senior Associate
Denmark

I'm an associate in our international HR Services group in Denmark specialising in labour and employment law issues, both nationally and internationally.

Søren Narv Pedersen

Partner
Denmark

I'm a partner and head of our international HR Services group in Denmark and a member of our international Trade Secrets Protection group. I've spent over 20 years specialising in labour and employment law, court and arbitration cases, trade secrets, company law and M&A.

On 24 May 2018, the parties of the Danish Parliament have adopted an amendment to the Act on posted workers relating to the requirement for notifying the Register of Foreign Service Providers (RUT).

The amendment follows from the agreement between the government and the Danish People's Party (Dansk Folkeparti) in the Finance Act covering 2018, in which it was agreed to establish a legal basis for issuing administrative penalties to foreign companies continuously refraining from notifying the Register of Foreign Service Providers.

A consequence thereof is the adoption of a new section 7 to the Act on Posted Workers entailing that the Danish Working Environment Authority has the authority to order a foreign company to notify the Register of Foreign Service Providers as soon as it has been established that the company has not complied with the duty of notification.

In case of non-compliance with such an order, daily penalties may be imposed on companies until the order is complied with.

The new rules will become effective from 1 July 2018.