A new bill in Denmark contains significant changes to posted employees’ working conditions in Denmark. The key measures focus on remuneration of posted workers, long-term postings, and rules on temporary agency workers. 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.
Denmark’s Ministry of Employment has proposed a new bill which contains significant changes to posted employees’ working conditions in Denmark.1 The new bill will implement the revised Posting of Workers Directive (“PWD”)2 and is expected to enter into force on 1 January 2021, however with retroactive effect from 30 July 2020.
The revision of PWD introduced changes in three main areas:
1. remuneration of posted workers;
2. long-term postings;
3. rules on temporary agency workers.
If the draft bill is adopted in its current form, it will lead to several changes, which we highlight in this GMS Flash Alert.
The proposed Danish bill implementing the amendments in the PWD will have significant impact on employers posting employees to Denmark.
The bill will change the existing Danish regulations significantly, increasing equal treatment for posted employees in relation to the pay and working conditions to be applied in 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 that are posting employees to perform work in any EU member state consult with their usual service provider or their KPMG contact in order to understand the steps that need to be taken to foster compliance.
The draft bill is at present in the hearing phase.
The KPMG team in Denmark will follow the development closely and endeavour to provide GMS Flash Alert readers with more information when it becomes available.
1 See Lovforslag om ændring af lov om udstationering af lønmodtagere m.v. (Implementering af det reviderede udstatione-ringsdirektiv m.v.) (in Danish) at: https://hoeringsportalen.dk/Hearing/Details/64252.
2 For related coverage of the amended Posted Workers Directive, see GMS Flash Alert 2020-329, 27 July 2020.
* Please note the KPMG International member firm in the United States does not provide immigration or employment law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Denmark.
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