Denmark
Regulations for Working in Denmark
Overview
Denmark is considered one of the most progressive countries in Europe when it comes to labor law and social protection. Those planning a business trip to Denmark, assigning employees as part of a posting to Denmark, or enabling a workation in the north must navigate clearly defined legal requirements. While there is no statutory minimum wage in Denmark, binding collective agreements ensure fair working conditions in many sectors. In addition, mandatory registration in the Danish RUT database, working time requirements, payroll documentation, and in some cases, the appointment of a local contact person must be considered. This guide outlines the key legal obligations for working in Denmark – concise, practical, and focused on current requirements for international assignments.
EU Posted Workers Directive
What are the requirements?
Foreign employers posting workers to Denmark must register the employees in the Register of Foreign Service Providers (RUT Register) either before or on the day work begins. Any changes to the posting must be updated in the RUT Register no later than the first working day after the change takes effect. The RUT system is available online and provides information in Danish, English, German, and Polish.
Required Documents
In case of an inspection, the foreign employer must be able to provide all documents related to the working conditions of the posted employees. Proof of RUT registration must also be available at the workplace in Denmark, either in paper or digital format.
Contact Person
Foreign employers must designate a contact person at the Danish work location and include their details in the RUT Register. This person must be physically present in Denmark during the assignment. However, a permanent representative is not required.
Failure to comply may result in fines of up to DKK 10,000 (approx. €1,500). In severe or repeated cases, the fine can increase to DKK 20,000 (approx. €3,000). Sanctionable offenses include failure to register the posting on time, breach of various legal obligations, failure to provide documents when requested by authorities, or failure to present the RUT registration to the receiving entity.
Labor Law
Minimum Wage
There is no statutory minimum wage in Denmark, and Danish law does not regulate minimum pay levels. Wages and working conditions are typically negotiated through collective agreements between trade unions and employer associations, without government involvement (the so-called Danish Model). These agreements often include minimum wage provisions but are not universally binding across all sectors.
Working Time
The average working time may not exceed 48 hours per week (including overtime) over a four-month reference period. Employees are entitled to a break if the daily working time exceeds six hours. In addition, working schedules must allow for a minimum uninterrupted rest period of 11 hours between shifts.
Failure to comply with national labor laws can result in financial liabilities, fines, or legal claims under Danish rules on termination and working time.
Sozialversicherung
For employees posted to Denmark from another EU country, EU Regulation 883/2004 on the coordination of social security systems applies:
- A1 certificate provided: The worker remains covered by the social security system of their home country.
- No A1 certificate: Danish social security rules apply, and the foreign employer must act like a local Danish employer.
Violations can lead to significant administrative obligations, back payments (with interest), audits, and substantial penalties. Reputational damage is also possible.
Income Tax
The tax consequences of a posting to Denmark depend on the employee’s tax residency status. If the posted employee is not considered tax resident in Denmark, no Danish tax liability arises, provided the stay does not exceed 183 days within a 12-month period. If the employee becomes tax resident in Denmark, they may still be exempt from taxation during the 183-day period if they are deemed tax resident in their home country under a double taxation agreement.
Violations may trigger immediate obligations to file a tax return in Denmark, often leading to significant consequences for both the employee and the employer.
Immigration & Visas
International activities require exact compliance with international visa and entry requirements. The traveler, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.
The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.
Permanent Establishment
Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.
The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.
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