Danish Parliament adopts bill imposing stricter requirements for posting foreign employees in Denmark

On 28 November 2024 the Danish Parliament passed a bill tightening the requirements for foreign companies posting employees in Denmark. A new requirement of presentation of identification will enter into force on 1 January 2025, while additional requirements in connection with registration in RUT will enter into force on 1 January 2026. The bill implements a political agreement from 23 May 2024, which aims to strengthen efforts against social dumping and illegal labour. The new rules enter into force on 1 January 2025. 

The bill was presented on 2 October 2024, and we have previously written about the rules in connection with the posting of foreign employees. The article can be read here.

This article summarizes the main changes relating to foreign companies posting employees to Denmark.

The adopted bill

Today, the Danish Parliament has adopted a bill that introduces additional registration requirements for registration in the RUT register and a requirement to present identification to the Danish Working Environment Authority and the Danish Agency for International Recruitment and Integration (SIRI). The importance of tightening the rules in the area of ​​foreign labor is emphasized in light of the fact that two migrant workers lost their lives in a work accident on Funen on Tuesday evening. In addition, in the past month, focus has also been placed on the often inadequate and unhealthy working conditions of migrant workers in the construction industry. The bill can therefore be seen as an expression that politicians are taking the challenges seriously and want to improve the working conditions for foreign workers in Denmark.

Duty to notify the Register of Foreign Service Providers (RUT)

Foreign companies posting employees to Denmark for the provision of services have always been obligated to register certain information in the Register of Foreign Service Providers (RUT-register).

The duty to notify the RUT register applies both to companies established outside the EU and to companies established in the EU that temporarily post third-country nationals to Denmark in connection with the provision of services.

Companies established in the EU can utilize the principle of freedom to provide services, enshrined in Article 56 TFEU and supplemented by the case-law of the Court of Justice of the European Union. The rules on the freedom to provide services, means that a service provider established in an EU Member State has the right to post its employees to provide services in another Member State, including Denmark, without the need for employees to obtain a work and residence permit. The right of a service provider to post its employees in the context of the provision of a service applies regardless of the nationality of the employee. A third-country national thus has the right to stay and provides services in accordance with this principle.

What information is currently required for RUT-register?

The notification to RUT must be made no later than at the same time as the work is started in Denmark. Certain information must be reported for each service provision period, including:

• The foreign company’s name, business address and contact information
• Date of commencement and end of the service provision.
• Location of the provision of the services.
• The company’s industry code and information on any VAT registration in the home country.
• Information about the employee, including social security conditions in the home country.
• Information about the Danish principal in connection with the service, providing the principal is not a private individual.

Tightening of registration requirements for registration in the RUT register

The bill entails a significant tightening of the registration requirements for foreign employers who post third-country nationals for the purpose of providing services in Denmark. Thus, as of 1 January 2026, foreign employers must meet the following additional requirements when registering third-country nationals in RUT:

• A copy of the service contract must be uploaded.
• Copies of employment contracts of the individuals providing the service must be uploaded
• There is a new requirement to upload the residence, and work permits for the posting of third-country nationals (if a third-country national is posted by a company established within the EU, a copy of the valid residence and work permit in the country of establishment must be uploaded instead)

The additional requirements apply to everyone who is already covered by the duty to report to the RUT register, and thus supplement the existing requirements for notification to RUT. However, the additional requirements only apply if the employer/service provider posts third-country nationals (employees with citizenship of a country outside the EU/EEA and Switzerland in connection with their work in Denmark).

As with the existing requirements, the new supplementary registration requirements will have to be met at the latest at the same time as the work is initiated in Denmark.

Presentation of identification to the Danish Working Environment Authority

According to the new rules there is also a requirement for employees providing services in Denmark to provide identification documentation upon request of the Danish Working Environment Authority. The service provider/employer will have the responsibility of ensuring that posted employees can present valid identification, e.g. passport, driving licence or health card, to the Danish Working Environment Authority. Whilst it is the employee that must be in possession of the identification, employers should ensure that that is procedure in place to ensure employees carry with them their Identification documentation. The requirement also applies to individual self-employed service providers.

The requirement of presentation of identification will enter into force on 1 January 2025 and thus earlier than the additional requirements for registration in RUT, cf. above.

Presentation of identification to SIRI

Finally, the new rules also mean that the Danish Agency for International Recruitment and Integration (SIRI) will be able to request sight of valid identification documentation for individuals providing services in Denmark. The requirements for valid identification documentation are the same as when presenting to the Danish Working Environment Authority.

It will depend on the Agency’s specific assessment based on observations during an inspection visit which people individuals will need to provide identification documentation.

This requirement of presentation of identification will also enter into force on 1 January 2025.

You can read more about the consequences of non-compliance with the registration obligation, lack of residence and work permits and failure to present identification to the Danish Working Environment Authority and SIRI here.

Mette Klingsten Law Firm notes

As of 1 January 2025, foreign employers must ensure that posted workers in Denmark bring personal identification to present to the Danish Working Authority and SIRI.

Even though there is still good time, foreign employers must also be aware of the additional registration requirements that enter into force on 1 January 2026. Some companies are not aware that a RUT-registration does not constitute a work- and residence permit. If a company posts third-country citizens, for example British citizens, to work in Denmark, they must apply for a separate work- and residence permit at SIRI. It is the individual employee’s own responsibility to make sure that a work- and residence permit has been obtained.

The Immigration Service will generally take a very strict approach to individuals illegally staying or working in Denmark with the penalty being expulsion and an entry ban to the Schengen area for 2 years. Therefore, it is essential that the registration requirements are adhered to given the potential consequences.

Mette Klingsten Law Firm assists with advice in connection with the posting of foreign employees in Denmark. For further information, please contact Mette Klingsten at mk@mklaw.dk or Carley Wilson at cwi@mklaw.dk.