A political agreement has been reached on, among other things, a new occupational scheme for work permits based on collective agreements, an exemption from the work permit requirement for event and conference staff, and initiatives to combat social dumping.

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Third-country nationals must have a work permit to work in Denmark, unless an exception applies. Work permits can be granted under various occupational schemes (e.g. the Pay Limit scheme and the Positive List), and it has now been agreed to introduce a new occupational scheme to make it easier for companies covered by collective agreements to hire workers from third countries. At the same time, a new exemption to the work permit requirement has been agreed for event and conference staff.

New occupational scheme based on collective agreements
The new scheme sets requirements for employers’ activities and terms and conditions of employment. In addition, the scheme will only be available to third-country nationals from certain countries. Several of the requirements are similar to those that apply to certification under the Fast Track scheme and work permits under the Supplementary Pay Limit scheme, but additional conditions will apply as well.

Employers must be certified to use the scheme and must, among other things, fulfil the following criteria:

• The company must be covered by a collective agreement between member organisations of the Confederation of Danish Employers, Finans Danmark or Forsikring & Pension – FH and AC, respectively – including company-wide and accession agreements, or by a public-sector collective agreement.
• The company must have a shop steward within the area covered by the collective agreement or enter into an agreement with the relevant employee organisation regarding the right of inspection.
• The company must have at least 10 full-time employees.
• The company must have been in operation for at least 2 years prior to certification and have submitted an annual report in accordance with the Financial Statements Act.
• In the 2 years prior to certification, the company must not have been fined for underpayment of foreign workers or have been sanctioned more than twice under the Aliens Act and, at the time of certification, it must not be subject to an immediate improvement notice from the Working Environment Authority that have not been complied with, or any legal labour disputes.

In order to be granted a residence and work permit for a specific position, the following criteria – among others – apply:

• The position must be full-time and covered by a collective agreement that the company has been certified to use in accordance with the rules of the scheme.
• The annual salary must be at least DKK 300,000 (2025 level).
• The third-country national must be a citizen of a third country included in the applicable list of countries.
• The seasonally adjusted unemployment rate in Denmark must not exceed 3.75% at the time of application (the threshold value is adjusted upwards to 4.25%).

The list of countries will primarily include 1) EU candidate countries negotiating accession, and 2) the 10 third countries with the largest volume of Danish investments in the country as well as the country’s investments in Denmark. The list currently covers USA, UK, Singapore, China, Japan, Australia, Canada, India, Brazil, Malaysia, Montenegro, Serbia, North Macedonia, Albania, Ukraine and Moldova.

Exemption for event and conference staff
It has been agreed to introduce a new exemption to the requirement for work and residence permits for foreign event and conference staff.

It will be a condition that the work relates to closed indoor corporate events with a capacity of at least 400 registered attendees. The exemption will apply for a maximum of 10 working days. It is unclear whether the limit will be per event or a total for a given period.

Initiatives against social dumping
As part of the political agreement, it has been agreed to introduce new initiatives to combat social dumping, particularly in the building and construction sector. For example, this means that employees will be required to carry ID cards when working on building and construction projects exceeding DKK 100 million in value. In addition, the government requirement for the use of labour clauses in tenders will be extended to contracts awarded to municipalities, regions and public bodies within building and construction projects of a certain size.

Norrbom Vinding notes:

Norrbom Vinding will follow the political process of proposing bills and their passage through Parliament and will provide an update when there is news about any initiatives. 

The content of the above is not, and should not be a substitute for legal advice.