Fund for the posted workers launched in Denmark

Denmark informs about launching the new Danish Labour Market Fund for Posted Workers. It will be used to cover the eventual sum if the employer is in arrears with the worker. 

In the European Parliament filing amendments to the revision proposal of the Posting of Workers Directive is in progress. One of the proposal’s aims is to alter the ‘minimum rates of pay’ requirement with ‘remuneration’. European Commission explains that such solution aims to introduce the ‘equal pay for equal work” idea, however many experts point out that in the reality it will lead to elimination of the workers and posting companies from the market. Our remarks on the project can be found in the LMI Analysis of the project.

Meanwhile Denmark has taken steps to address another issue. It hasn’t been mentioned before and it is regarding the remuneration of the posted workers. The issue is salaries unpaid to the workers by their employers. Noteworthy, during numerous discussions on the posting of workers, which are taken up mostly in the context of the revision proposal mentioned, there haven’t appeared any reports of delays in payment of the remuneration to the posted workers.

Danish solution provides the protection to the worker in case that the company fails to pay out the salary on time – he will receive the due sum from the Labour Market Fund. In turn, the employer will be listed as the state’s, not the worker’s, debtor.

Rules

What is interesting, the incidents of arrears may reported by the posted workers themselves or the trade unions. The Danish Labour Market Fund for Posted Workers pays out the salary outstanding if the following conditions are met:

  • the work performed is covered by a collective agreement
  • the salary have been determined by a labour court
  • the foreign enterprise is registered in an EU/EEA country
  • the employee posted to Denmark or a trade union has tried, in vain, to have the salary paid out following the consideration of the case by a labour court.

HERE you can find the legal acts grounding the Fund. They are written in Dutch, however the English translation should be avialable soon.

MZ

 

Labour Mobility Initiative is Europe’s largest think tank dealing with work mobility and posting of workers. Since 2013 it has been bringing together scholars, enterpreneurs, trade unions and public administration to create the only Polish and the largest European substantive forum for exchanging knowledge on the posting of workers in the framework of freedom to provide services.