The Danish Parliament has agreed to ease restrictions on the recruitment of foreign workers

The current ”Pay-Limit Scheme” requires the employer to pay an annual gross salary of DKK 448.000, which has been heavily criticized by various organizations, in particular those representing entrepreneurs and small businesses. With this new agreement, the amount will now be lowered to DKK 375.000 for foreign workers (Non-EU/EEA citizens).
News

On the other side of the table, the unions have been outspoken critics of a reduction as they fear that it will lead to so-called “social dumping” and importing of labor with low skills to compete with Danish labor – a campaign which has continued without interruption during the current period in which the Danish labor market is desperately in need of hands.

Consequently, it has been very hard for many Danish companies to attract foreign labor in many different areas, perhaps most notably in the hospitality sector and restaurant sector. This comes on top of authorities bluntly setting aside agreements, for instance for chefs if the authorities find the salary to be too high – this happens even though salary is not regulated by law in Denmark.

By lowering the amount to DKK 375.000, it will undoubtably become easier to recruit skilled labor at a cost which is comparable to the Danish labor market in general.

However, as always, there are strings attached: If the general unemployment rate will exceed 3,75 percent, or if more than 15,000 people register under the new “pay-limit scheme” it will be temporally closed for new applicants.

Further, the “Fast-track scheme” will be made available to companies with only 10 full time employees. Today, 20 full time employees are required.

Finally, the “Positive list”, which is a list of skilled work professions who have easier access to the Danish labor market, will be extended and ease the access for foreigners wishing to start new business in Denmark through the “Startup Denmark scheme”.

At Lund Elmer Sandager’s employment law team, we are working on a daily basis to assist clients navigating the complex field of Danish immigration and workplace regulation. If you need any assistance or an introduction to how we can help you set up your business in Denmark or attract the professionals for which your company may be desperately in need, do not hesitatee to contact us.