New initiatives to prevent social dumping in Denmark

Following our newsletter on 10 October 2024 about the Danish Government's efforts to prevent social dumping, additional initiatives have now been completed. Details of the new initiatives will be covered in this newsletter.

Proposed bill on strengthened actions against social dumping has been adopted

On 27 March 2025, the Danish Parliament passed a new bill aimed at strengthening actions against social dumping. The new regulations will take effect from 1 January 2026, marking a significant step towards ensuring safer and fairer working conditions in Denmark.

Intensified inspection

In practice, these new regulations enable The Danish Working Environment Authority (Arbejdstilsynet) to halt contractors’ activities (entreprenørstop), if they determine that there have been repeated violations of occupational health and safety laws. This determination will be conducted through more frequent inspections by the authorities, and contractors will receive a written notice for each violation.

It is important to note that these regulations apply to both contractors and their subcontractors. Consequently, if a contractor is ordered to stop their activities by the authorities, subcontractors will be affected as well. In case there is a violation, several factors, such as the employment agreement uploaded to the RUT registration system, will help to determine which employer is responsible for the violation. For more information on the documents required for RUT registration, please refer to our newsletter from November 2024.

A resumption of the work will require the contractors to inform the Danish Working Environment Authority of the corrective actions taken to address the issues, and the authority must approve the restart before work can continue.

Failure to comply with these regulations may result in fines ranging from DKK 10,000 to DKK 50,000 being imposed by the authority.

Bill on employers' obligations when providing lodging for employees in Denmark will come into effect later this year

On 28 November 2024, the Danish Parliament passed a bill requiring employers who provide lodging for their employees in Denmark to ensure that the accommodations meet for minimum standards for housing provided by the employer. These new regulations will take effect on 1 July 2025.

The bill aims to ensure decent living conditions for employees housed by their employers, aligning with existing housing standards in Denmark. It reinforces protection against social dumping by introducing general requirements for accommodations provided by both Danish and foreign employers for their employees working in Denmark.

Key regulations require that employer-provided accommodation must ensure that the following facilities are available to the employees:

1. A maximum of two people per living space.

2. Living and recreational areas with sufficient daylight and fresh air, accessible through one or more windows that open directly to the outdoors.

3. Living and recreational spaces with access to sufficient heating and a satisfactory indoor climate.

4. Protection against humidity, cold, heat and noise.

5. Drinking water.

6. Wastewater drainage.

The Danish Working Environment Authority will evaluate compliance with these new regulations on a case-by-case basis supported by regular housing inspections. The decisive factor is whether the employer has made accommodation available to their employees in connection with the employment relationship and is thus the one who is closest to ensuring the employees' accommodation conditions. It is important to note that these new regulations apply to all employers, regardless of industry, duration of lodging, or number of employees. The rules remain applicable regardless of whether the employees pay rent for the accommodation, as long as it is provided by the employer.

Employers must provide the necessary information for these inspections, and the Danish Working Environment Authority can access the accommodations without a warrant if required.

Violations can result in immediate or time-bound orders to rectify issues, with the possibility of fines for non-compliance ranging from DKK 10,000 to DKK 25,000 imposed by the authorities.

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.