Foreign companies: Register at RUT or pay the penalty

Prior to 1 July 2018, foreign companies were better off not registering at RUT. Service providers could refrain from registering at RUT and merely receive a single fine. Hereafter, the service providers could remain in breach of the law without any additional consequences.

As a result, the Danish Parliament adopted a legislative amendment entailing serious consequences for foreign companies who refrain from registering at RUT.

With effect from 1 July 2018, the Danish Working Environment Authority therefore has a basis for imposing a foreign company to immediately register at RUT if it has found that the company has not yet registered.

With this the new sanction, foreign companies may receive daily fines until a registration has been made. The daily fine currently amounts to DKK 1,500 as a minimum.

The Danish Minister for Employment, Troels Lund Poulsen, has expressed that foreign companies are more than welcome in the Danish labor market as long as they comply with Danish legislation, such as registering at RUT.

If you have any questions in relation to the amended sanction legislation or to RUT in general, feel free to reach out to our employment law specialists Michael Møller Nielsen (+45 33 300 262 / mmn@les.dk) or Julie Flindt Rasmussen +45 33 300 227 / jfr@les.dk)