Advantage Austria Show navigation

LEGAL NEWS - The new Danish Act on Posting of Workers and the registration in the Danish Register of Foreign Service Providers

Logo LEAD Advokatpartnerselskab
12. September 2016

On 3 June 2016, the Danish Parliament passed amendments to the Danish Posting of Workers Act that entered into force on 18 June 2016. Another major novelty is the new Danish Act on The Danish Labour Market Fund for Posted Workers. The Act entered into force on 18 June 2016.

Amendments to the Act on Posting of Workers 

On 3 June 2016, the Danish Parliament passed amendments to the Danish Posting of Workers Act that entered into force on 18 June 2016. These amendments were passed as implementation of the Enforcement Directive (Directive 2014/67/EU). The purpose of these new provisions is to ensure that the Danish Working Environment Authority is able to find letterbox companies that post workers to Denmark without having any activities in the country of residence and thus abusing the rules regarding the posting of workers.

According to the new section 4(3) of the Act, a foreign company that posts workers to Denmark has to be actually established in the country of residence and has to have other significant activities in this country than only internal management or administrative activities. 

In order to ensure that the foreign company fulfils the requirements set by the Danish Posting of Workers Act, the Danish Working Environment Authority is authorised to obtain information from the authorities in the country of residence of the foreign company. Additionally, the Danish trade unions can request the Danish Working Environment Authority to obtain information from the foreign authorities, for the use in an eventual dispute between a trade union and the foreign company. Finally, the Danish Working Environment Authority’s is entitled to rectify the information given in the RUT-register. 

The Danish Labour Market Fund for Posted Workers 

Another major novelty is the new Danish Act on The Danish Labour Market Fund for Posted Workers. The Act entered into force on 18 June 2016. The Danish Labour Market Fund for Posted Workers is responsible for paying out salaries to employees posted to Denmark and covered by a collective agreement, in the event their foreign employers do not pay their salary based on the outcome of an industrial dispute. The fund is financed by fixed payments made by Danish employers and foreign employers posting employees to Denmark. Companies registered in the RUT-register will be obliged to pay the fixed contribution.

The contribution has to be paid each quarter and will be charged digitally or by invoice to the foreign companies’ place of business in the country of residence. At this stage the amount is not specified yet, but for 2016 it will probably be DKK 11,30 for each fulltime employee.  

Starting from 1 October 2016 it will be possible for employees being member of a trade union to apply for payments for lacking salary in connection with industrial disputes dating back to 18 June 2016 when the act entered into force.

Therefore, it has become even more important for foreign companies and self-employed that are working / providing services in Denmark to remember to register correctly with  the RUT-register (The Danish Register of Foreign Service Providers). 

The RUT-Register 

The RUT Register shall ensure that Danish authorities are able to check if the provisions and the applicable Danish regulations, especially tax- and labour law rules, are complied with. Information in the RUT register is public and thus Danish Trade Unions and the Danish Working Environment Agency are checking the register on a regular basis. 

Foreign companies, hereunder self-employed who work or provide services in Denmark or who post workers to carry out short term work in Denmark are obliged to notify in RUT. 

Whether the foreign company / self-employed is obligated to notify in RUT is only a question of the work / service provided in Denmark, not the duration of the work. There are only a few exceptions to the main rule:

  • The fitter rule (not exceeding 8 days, service is part of the delivery of a technical plant or installation, and the foreign company or posted worker is specialized or qualified for this work)
  • The participation in meetings and conferences
  • Researchers, speakers etc. who are invited to give a speech or to teach
  • The participation in individual artistic events by professional artistes
  • The participation in business trips for foreign enterprises who do not have a permanent establishment in Denmark
  • Professional athletes and trainers participating in major sport events or training in Denmark
  • Consultants providing consultancy services within auditing and accounting if the service does not exceed 8 days
  • Employees posted within a company group for a period that doesn’t exceed 8 days and if the work / service is not within the construction, agriculture, forestry, horticulture, cleaning sector, restaurant or hotel businesses
  • Cabotage in Denmark (transport of goods in Denmark according to the rules for international transport)
 

The registration must occur at the latest simultaneously with the commencement of the work. If there are changes to the information, the foreign company is obliged to report this within 8 days after the change has had effect. 

The Working Environment Authority imposes fines in the amount of DKK 10.000 for the incorrect or non-registration of the foreign company in RUT. 

The fine is a fixed-penalty notice, which means, that the foreign enterprise / self-employed can either pay the fine and hereby close the case or raise a defence, which will lead to that the case is handed to the prosecution service, who will decide whether the fine is justified. 

With the new regulation there will thus be a bigger focus on the RUT register again and it thus important to remember to register timely and correctly. 

For any further questions please contact attorney at law Alexandra Huber at ah@leaddenmark.com

print
©©ADVANTAGE AUSTRIA