EMPLOYEES TO DENMARK

Recruiting employees from abroad: What employers need to know about immigration rules.

A distinction is made between EU citizens and citizens of so-called third countries. Keller Law Firm can assist your company in both situations.

 

EU citizens

EU citizens are entitled to work and reside in Denmark. They have a right of free residence for up to three months. If a company wants EU citizens to stay in Denmark for more than three months, the employees must apply for an EU residence document. The employees can then stay in the country as long as they meet the conditions for residence.

When the authorities process your employees’ applications, they make a specific and individual assessment of whether the employees are workers under EU law.

This means, among other things, that:

• The work must be actual and real, i.e. work must be performed in return for pay.
• As a rule, each employee must work at least 10-12 hours per week.
• As a rule, the employment must last for at least 10-12 weeks.

The authorities also take other terms of employment into account, such as whether there is a collective agreement, entitlement to paid holiday and sick pay. The authorities make their decision based on the information and documents submitted with the application. The authorities will contact the employees during the case processing if they need further information.

 

Third-country nationals

When a company wants to hire an employee from a third country, the employee must have a work permit before they can start work. In this connection, a residence permit is also required.

This can be obtained through the employment schemes in the Aliens Act. The various schemes set out different conditions, and it is therefore crucial to choose the right scheme for the specific case. Regardless of the scheme chosen, a work permit fundamentally requires that the employee receives pay and employment conditions that are customary in the Danish labour market.

If, as an employer, you have a need to continuously hire employees from third countries, you should consider whether your company can make use of the fast track scheme. The scheme gives certified companies special opportunities for the rapid recruitment of employees from third countries.

When applying for a work permit, the employee must, as a rule, have received a job offer. Once the employee has obtained a work permit, it is a prerequisite that the employment is maintained at least on the terms stated. Other conditions may also be attached to the work permit.

 

Selected key residence schemes

The following schemes are particularly relevant when hiring employees:

• the positive list for persons with either a higher education or a skilled trade education
• the amount scheme
• the supplementary amount scheme
• trainees
• workers with special individual qualifications
• the agricultural track
• Start-up Denmark

A common basic condition is that the employment is on terms that are customary for the position in question in Denmark.

 

Work permit, changing jobs and working hours

As a general rule, a work permit is required for paid/unpaid employment, self-employment and services in Denmark, with specific exceptions in the law. Conditions may be attached to a work permit, and the Minister lays down detailed rules on its content and duration.

The job change rule allows an employee with a valid residence/work permit to start a new job while an application for a new permit is being processed, provided that the application is submitted at the time of the job change; the purpose is to ensure continued legal employment in the event of a genuine job change.

For short-term stays under the fast track scheme, a 90-day limit per year from the date of entry applies, with no limit on the number of short-term stays; each permit expires no later than 14 days after the end of the contract and cannot be extended.

 

Salary and employment conditions, salary payment and bank account

The main requirement in the business schemes is that salary and employment conditions are customary according to Danish conditions; only cash remuneration, including pension and paid holiday pay, is included in the assessment. For several schemes, there is a general requirement for payment to a Danish bank account within a deadline.

For the researcher scheme and several fast track tracks, the requirement has been waived to promote flexibility, while the deadline has been extended to 180 days for the schemes where the requirement remains. The reason for this is to prevent fraud/abuse and ensure correct salary payments in Denmark.

 

Certification and fast track schemes

For fast track schemes, the company must be certified; including documentation of a collective agreement or a sworn statement of customary terms and conditions, at least 10 full-time employees, no unfulfilled immediate orders from the Danish Working Environment Authority, no repeated sanctions in the past year and participation in a guidance meeting at SIRI (Immigration Act § 9 a). A fast-track scheme allows for a provisional work permit upon entry once the fee has been paid and the application submitted.

 

Employer’s obligations and control

Upon request, the employer must provide SIRI with the necessary information to check whether the conditions for the work permit are/have been met when employing foreigners under the business schemes. The authorities may issue administrative personal identification numbers for provisional work permits to facilitate case processing and contact with authorities/private individuals.

 

Practical steps for employers

• You must choose the correct residence scheme based on the position, salary level and status of the company (e.g. fast track certification).
• You must ensure and document standard Danish salary and employment conditions and be aware of which salary elements are recognised.
• You must comply with the advertising and availability requirements for supplementary payment schemes/fast-track supplementary payment tracks.
• You must submit your application on time and pay the fee – fast track enables quick entry with a provisional work permit.
• You must comply with bank account and salary payment rules, including deadlines/exceptions per scheme.
• When changing jobs, you must ensure that an application for a new permit is submitted at the start of the new employment relationship in order to retain the right to work while the case is being processed.

Keller Law Firm can help your company navigate the complex rules governing foreign labour.

If the application states that the employee is represented by a solicitor, the employee does not need to grant power of attorney to the solicitor, as solicitors already have power of attorney by virtue of their position. This means, among other things, that during the case, the authorities will send all inquiries to your solicitor. This can make your company’s work easier by getting help from a solicitor.

Remember: You can always request a meeting (either at our office or virtually via Teams or Zoom), it is free of charge and non-binding!

Contact solicitor Flemming Keller Hendriksen or +45 7090 9060.