The Ministry of Employment has proposed a new bill, which contains significant changes to posted employees’ working conditions in Denmark. The new bill will implement the revised Posting of Workers Directive (“PWD”) and is expected to enter into force on 1 January 2021, however with retroactive effect from 30 July 2020.
The bill will change the existing Danish regulations significantly, increasing equal treatment for posted employees in relation to the pay and working conditions, which will apply in Denmark. The revision of PWD introduced changes in three main areas:
If the draft bill is adopted in its current form, it will lead to several changes.
Registration requirements within EU - as RUT in Denmark - in regard to the Posted Workers will not be affected by the change in the Posted Workers Directive.
The proposed Danish bill implementing the amendments in the PWD will have significant impact on employers posting employees to Denmark. It is furthermore clear that the amended directive (effective from 30 July 2020) already has consequences for all employers posting employees to any EU-member state. Since the implementation of the amendments in the PWD differs from member state to member state, we recommend that companies, who post employees to perform work in any EU-member state, contact KPMG in order to clarify which steps need to be taken in order to ensure compliance.
The draft bill is currently in the hearing phase. We will follow the development closely and follow up with more information.
You are welcome to contact us if you wish to discuss the effect of the new regulations on your organisation:
Pernille Paisen, Director, Mobility & People Services, KPMG Acor Tax
E: email@example.com, M: +45 5374 7024
Frederik Brocks, Partner, Head of Employment & Mobility, KPMG Law Advokatfirma
E: firstname.lastname@example.org, M: +45 25 83 48 48