New Agreement to Strengthen Recruitment of Foreign Labour and Combat Social Dumping
New Agreement to Strengthen Recruitment of Foreign Labour and Combat Social Dumping
On 30 June 2025, the Danish government presented a new agreement aimed at making it easier for Danish companies to recruit foreign labour from selected countries—under Danish wage and working conditions. The agreement introduces a new business scheme with a significantly lower salary threshold of DKK 300,000 annually (2025 level) compared to existing schemes. However, it is a requirement that the job in question is covered by a collective agreement.
At the same time, a number of initiatives to combat social dumping are being launched, including a requirement for ID cards on large construction and civil engineering projects with a total value exceeding DKK 100 million. This is intended to strengthen the authorities’ ability to effectively monitor working conditions. The specific design of the ID card will be discussed with the social partners in the construction sector.
There is currently no bill proposed, which means it is not possible to say when the rules will come into effect, but it is expected to be sometime during 2026.
To use the new business scheme, companies must obtain a special certification. This requires:
The certification costs DKK 6,055 (2025 level) and is valid for three years, with the possibility of renewal for four years at a time. If the conditions are no longer met - or in cases of fraud or misuse - the certification may be revoked, resulting in a one-year quarantine period.
The scheme allows for immediate job start, meaning the employee can begin working before the work permit is formally issued.
When applying for a work and residence permit under the new business scheme, the following conditions must be met:
The employee must have opened a Danish bank account within 180 days.
The residence and work permit is valid for three years, with the possibility of an extension in four-year increments. A fee must be paid both when applying and when extending the permit, which is DKK 6,055 (2025 level).
In cases where the company has its certification revoked, the employee has the right to remain and work until the permit expires.
If you have any questions about the above, please contact Bolette Hindbo Pålsson, bohin@bdo.dk and Schastine Grundahl Jensen, scjen@bdo.dk.
At the same time, a number of initiatives to combat social dumping are being launched, including a requirement for ID cards on large construction and civil engineering projects with a total value exceeding DKK 100 million. This is intended to strengthen the authorities’ ability to effectively monitor working conditions. The specific design of the ID card will be discussed with the social partners in the construction sector.
There is currently no bill proposed, which means it is not possible to say when the rules will come into effect, but it is expected to be sometime during 2026.
Company Certification
To use the new business scheme, companies must obtain a special certification. This requires:
- A minimum of 10 full-time employees
- A declaration of truth stating that the company is covered by a collective agreement entered into by the most representative labour market parties
- No cases of underpayment of foreign labour within the past two years
- Participation in an online meeting with SIRI
- No more than two violations of the Aliens Act within the past year
- The company must not be involved in a lawful labour dispute or have any unresolved immediate injunctions from the Danish Working Environment Authority
- The company must have been operating for at least two years prior to certification and must submit an annual report and a service certificate
The certification costs DKK 6,055 (2025 level) and is valid for three years, with the possibility of renewal for four years at a time. If the conditions are no longer met - or in cases of fraud or misuse - the certification may be revoked, resulting in a one-year quarantine period.
The scheme allows for immediate job start, meaning the employee can begin working before the work permit is formally issued.
Employment Requirements
When applying for a work and residence permit under the new business scheme, the following conditions must be met:
- Documentation that the offered position is covered by one of the collective agreements the company is certified to use
- The position must be full-time according to the collective agreement
- The annual salary must be at least DKK 300,000 (2025 level)
- The employee must be a citizen of one of the following countries: USA, United Kingdom, Singapore, China, Japan, Australia, Canada, India, Brazil, Malaysia, Montenegro, Serbia, North Macedonia, Albania, Ukraine, or Moldova
- The employee must not have committed certain types of criminal offenses within up to two years prior to the time of application.
The employee must have opened a Danish bank account within 180 days.
The residence and work permit is valid for three years, with the possibility of an extension in four-year increments. A fee must be paid both when applying and when extending the permit, which is DKK 6,055 (2025 level).
In cases where the company has its certification revoked, the employee has the right to remain and work until the permit expires.
If you have any questions about the above, please contact Bolette Hindbo Pålsson, bohin@bdo.dk and Schastine Grundahl Jensen, scjen@bdo.dk.