RUT Registration Bill approved
Following our newsletter of 10 October 2024 about the proposed bill on strengthened actions against social dumping, we can now inform you that the Register of Foreign Service Providers (RUT) Bill has been passed by the Danish parliament. This means that the new regulations and changes will come into effect from 1 January 2025.
The authorities will now strengthen the legal protection against the use of illegal work and prevent posted workers from working for lower wages and under unacceptable conditions and, if required, without the necessary residence and work permits.
The immigration authorities (SIRI) will now be able to do on-site inspections and request employees performing work to present identification.
What do the main changes include?
- Increased control and sanctions: Stricter control measures and higher fines will be introduced for companies that do not comply with the rules on posting and residence permits. The Danish Working Environment Authority and other relevant authorities will receive more resources to conduct inspections.
- Improved protection for workers: The bill includes provisions to ensure that posted workers have the same rights and protections as Danish workers, including access to trade unions and the right to file complaints.
- Cooperation between authorities: Closer cooperation will be established between various authorities, including the Danish Working Environment Authority, the Tax Agency, Danish Police and the Danish Immigration Service, to ensure more effective enforcement of the rules.
- Stricter documentation requirements: Foreign companies posting workers to Denmark will be required to upload documentation when reporting to the RUT e.g. work permit NB: Applies from 1 January 2026.
In practice, foreign companies will be obligated to ensure that the posted workers are able to show identification by providing relevant documents (passport or national ID card) when the Danish authorities make spot checks.
From 1 January 2026, foreign service providers will be required to upload a copy of the service agreement as well as employment contracts, and when third-country nationals are posted a copy of the residence and work permits when reporting to the RUT.
Failure to comply with the order may result in a fine of up to DKK 20,000 by the authorities.
The authorities will also be able to issue a daily fine until the registration is finalised.
Let us assist you
At KPMG Acor Tax, we have a global immigration practice covering 150+ countries with more than 1,800 immigration experts. We offer a full spectrum of immigration-related services.
Please contact us if you have any questions or need our assistance.
Pernille Paisen
Director, Mobility & People Services
KPMG ACOR TAX
Zehra Øzdemir Cömert
Manager, Mobility & People Services
KPMG ACOR TAX
Emma Juhl
Senior Consultant, Mobility & People Services
KPMG ACOR TAX