Section 7a of the Danish Act Concerning Posting of Workers requires a foreign company seconding employees to Denmark to register information regarding the posting in the RUT register (Register of Foreign Service Providers). The purpose of the RUT register is to help the authorities enforce Danish labor law rules which automatically apply to foreign employees working in Denmark, especially the Danish Working Environment rules.
As a result of an increased effort to prevent social dumping, the Danish Minister for Employment introduced a proposal to change the Act concerning posting of workers on 17 December 2014. According to the proposal the fine associated with the duty of registration in the RUT-register should be higher for a company which is in serious violation of the rules, for example a repeated disregard for the duty of registration.
The level of fine is not directly regulated by the Act but is normally approximately DKK 10,000 (approx. EUR 1,350). However, the authorities have been imposing fines of up to DKK 20,000 as well, depending on how severe the violation is. According to the proposal, the fine shall be doubled if the company does not fulfil the requirements for registration or violates the rules in other ways. The proposed change to the Act will make such consequences evident.
The level of fine, however, may also be subject to an individual assessment by the courts. The level of fine will depend on the facts of the case and the court will take into account both aggravating and mitigating circumstances.
Please note, however, that this is only a proposed change to the Act and therefore has not been passed yet.
In summary, there is an increased focus from the authorities in relation to registration in the RUT. It is important for non-Danish companies seconding employees to Denmark to register and to do so correctly. Bird & Bird has extensive experience in registration in the RUT register so please feel free to contact us on this matter and we will assist you every step of the way.
Please contact Søren Narv Pedersen at firstname.lastname@example.org or Mia Boesen at email@example.com