What happens if an employer does not pay the first time?
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.
What happens if an employer does not pay the second time?
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.