The Danish Fund for Posted Workers

If they can not get their employer to pay, workers posted to Denmark who are covered by a Danish collective agreement can, from October 2016, receive their wage via the Danish Labour Market Fund for Posted Workers.

A new fund will help foreign posted workers receive their wages.

When can a worker receive their wage via the fund?

Foreign posted workers can only receive their wages from the fund if:

  • They are posted from an EU or EEA country
  • They are covered by a Danish collective agreement
  • They have had their wage claim upheld in the industrial dispute settlement system
  • They have unsuccessfully attempted to receive their wage from their employer 

The trade union that pursued the industrial dispute case can represent the worker.

If an employer does not pay following the first request from the fund, the fund will pay the wage claim settle to the worker or to the trade union.

The fund will then send a new request with a demand for payment to the employer and at the same time charge a fee to the fund – a so-called extraordinary contribution – from the foreign employer to cover the fund's expenses. The fee is generally 25% of the total wage claim that has been determined by the industrial dispute ruling or decision.
If a foreign employer does not pay following another request from the fund, and the fund is therefore required to demand payment for a third time, it will also charge a fee from the Danish assignor (contractor). That is, the Danish enterprise that originally commissioned the work.

If the employer pays the fee, the fee charged to the assignor lapses. In the same manner, the fee charged to the employer lapses if the assignor pays.

If a foreign employer gives rise to claims for payment from the fund on several occasions within 36 months, the fee charged will increase to 40% of the total wage claim settled the second time, and 50% the third time.

The fee can also be charged to a enterprise without employees if it is a Danish assignor. Private individuals who are assignors cannot be charged a fee.

About the fund

On virk.dk, the fund publishes a list of foreign employers that have given rise to claims for payment from the fund over the preceding 36 months. This is done so that Danish assignors can familiarise themselves with the list before signing a contract with a foreign employer. If a Danish assignor chooses to sign an agreement with a foreign employer on the list, the assignor will, in the same manner as the employer, be charged an increased fee if the employer again gives rise to payment claims from the fund.

The fund is financed by contributions from all Danish employers that are obliged to pay the Labour Market Supplementary Pension (in Danish ATP) for employees.

All foreign employers providing services that employ temporary workers in Denmark also contribute to the fund. The collection of contributions from these enterprises is based on notification to the Register of Foreign Service Providers (RUT-registeret).

Overview of EU and EEA countries

The Azores
The Balearic Islands
Belgium
Bulgaria
Ceuta
Cyprus (south)
Denmark
The Canary Islands
Estonia
Finland
France
Gibraltar
Greece
Guadeloupe
Guyana

The Hebrides
The Republic of Ireland
Iceland
The Isle of Wight
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Madeira
Malta
Martinique
The Netherlands
Norway
Poland

Portugal
Reunion
Romania
Slovakia
Slovenia
Spain
The UK
Sweden
The Czech Republic
Germany
Hungary
Austria
The Aland Islands