Working in Denmark - a guide to the Danish labour market - part 2
Most people on the Danish labour market are represented by an organisation
A fundamental feature of the Danish labour market model is the strong labour market organisations. Membership of an organisation is common for Danish employers and employees.
English (United States) | Written 9/23/2009 read 989 times since then
Rules for foreign providers of services and posted workers
An enterprise that is established in an EU Member State may provide services in Denmark and may post its employees to perform the job.
It is a requirement that all foreign enterprises providing services in Denmark are registered with the Danish tax authorities with a view to payment of VAT. The registration must take place at least eight days before the activities are initiated in Denmark.
No transitional rules apply to enterprises from the East European EU Member States providing services in Denmark. Thus, citizens of the East European EU Member States who work in Denmark as a result of a genuine posting are not required to hold a residence permit under the rules laid down in the transitional scheme. But if an employee is posted for more than three months, he/she must acquire an EEA/EU residence permit from the Immigration Service.
Providing services in Denmark and posting workers
The posting enterprise will be covered by the Danish Act on posting of workers with a requirement to comply with the Danish rules on safety and health at work, working hours, holiday, equal opportunities, etc. The Danish Act on posting of workers contains no rules concerning minimum wage to posted workers. This is because there is no statutory minimum wage in Denmark.
An employer can freely decide whether to enter into a collective agreement with a trade union or not. A foreign enterprise posting its workers in Denmark must, however, be prepared to deal with Danish trade unions that will try to obtain a collective agreement concerning pay and working conditions.
Normally, a Danish trade union will contact the foreign enterprise and propose that an adhesion agreement is signed. The foreign enterprise can choose to negotiate an agreement with the trade union. The enterprise may also choose to join a Danish employer organisation and subsequently be covered by any collective agreement that this organisation has concluded with the trade union. Membership of an employer organisation also gives the enterprise access to legal advice in connection with the negotiations with trade unions. Finally, the enterprise may choose not to enter into a collective agreement. In this situation, the enterprise must be prepared for the trade union taking industrial action.
The social partners recommend that foreign employers join the relevant Danish employer organisation, thus committing themselves to respect Danish pay and working conditions. As mentioned earlier, the Danish Construction Association has many foreign enterprises among its members.
In addition to the requirements laid down in the Danish Act on Posting of Workers, the following requirements must be met before it is a matter of a genuine posting of workers:
- The posting enterprise must have a genuine financial activity in the home country.
- The posted workers must be permanently employed in the enterprise.
- The posting must be temporary and aimed at the provision of the specific service.
Thus, if an employee from one of the eight East European EU Member has a loose attachment to the posting undertaking as a temporary worker, casual worker etc., he or she must apply for a residence permit in accordance with the rules laid down in the transitional. The same applies to employees from the eight East European EU Member States who are employed in a temporary employment agency and posted as temporary workers to perform jobs in Danish enterprises. The Immigration Service may, on a consultative basis, give advice on whether a foreigner in a given situation is required to obtain a residence and work permit or not.
It is illegal for a citizen from one of the eight East European EU Member States to work under the pretence of being posted if he/she is in fact employed by an enterprise in Denmark.
Rules for self-employed persons setting up a business in Denmark
EU citizens may set up a business in Denmark and they have a right to stay in Denmark for the purpose of running it.
Enterprises that are established in Denmark must be registered with the Danish Commerce and Companies Agency eight days before starting their activities in Denmark.
In connection with the registration, the Danish authorities carry out a control to clarify whether it is genuinely a matter of self-employment or whether it is an employment relationship.
If it is found that it is not a matter of self-employment, but rather an employment relationship, the rules of the transitional scheme for employees will apply.
It is illegal for a citizen from one of the eight East European EU Member States to work under the pretence of being self-employed if he/she is in fact employed by a Danish enterprise.
Unemployment insurance
In Denmark it is voluntary to be insured against unemployment. If you want to be insured & nbsp;
against unemployment, you must apply for admission into an unemployment insurance fund. The application must be in writing and only persons who are employed in Denmark can be admitted. Persons who have worked in another EU/EEA country may include periods of insurance and employment from this work in order to meet the conditions of the Danish unemployment insurance system.
The conditions are that the person
- must apply for membership of a Danish unemployment insurance fund no more than 8
- weeks after termination of the insurance in the home country, and
- must have been working for at least 8 weeks within 12 weeks in Denmark.
Persons from the EU/EEA countries who have been admitted into a Danish unemployment insurance fund have the same rights and must meet the same requirements as Danes.
Citizens from the East European EU Member States must be aware that it is a central condition for entitlement to unemployment benefits that the person is available for work on the Danish labour market with one day's notice. Persons who are required to hold a residence and work permit to perform a specific job in Denmark do not meet this condition.
Citizens from the East European EU Member States will, however, on an equal footing with other migrant workers from the EU be entitled to unemployment benefits or social assistance if they become unemployed after a minimum of 12 months of continuous employment in Denmark. However, this right does not apply to employees from these new EU Member States who voluntarily leave the labour market. The right to unemployment benefits or social assistance is also conditional upon the person in question otherwise meeting the general requirements of the legislation.
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