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New rules on foreign labour adopted

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Legal news
calendar 27 June 2024
globus Denmark

The Danish Parliament recently adopted new rules for foreign employees in Denmark. Under the new rules, a Danish bank account is no longer required for most tracks under the fast-track scheme. The deadline will also be longer for those who still need a Danish bank account. It will also be easier to reapply for a residence permit. The rules enter into force on 1 July 2024.

Short stay, short process

Under the new rules, foreign employees with a residence permit on the fast-track scheme's short-term track can extend their permit if they are not staying in Denmark for more than 90 days per year.

They are also no longer required to have a temporary permit when reapplying for a residence permit, so they do not need to undergo a new ID check by SIRI or record biometrics (facial image and fingerprints).

Extension of the job change rule

Foreign employees generally need a new work and residence permit when they change jobs. Under the job change rule, they are able to start a new job while their application for a new permit is being processed.

Now, this rule is extended to apply when the employee changes jobs and the basis of residence during the same job.

Danish bank account

Previously, it was a requirement that foreign employees had a Danish bank account to which salary could be paid. This no longer applies to those with a permit under the fast-track scheme, except for the supplementary pay limit scheme.

The deadline for opening a Danish bank account will be extended from 90 to 180 days for those still required to have one.

IUNO’s opinion

The new rules aim to make hiring foreign employees easier for companies in Denmark. The previous government focused on this issue, presenting a proposal on foreign labour in 2018. We have written about that here.

IUNO recommends that companies familiarise themselves with the new rules entering into force on 1 July 2024. The new regulations and extended deadlines will make it easier for companies to comply with the requirements for foreign employees. If the requirements are not met, companies may risk being fined.

[L 147 Act amending the Foreign Nationals Act of 4 June 2024]

Short stay, short process

Under the new rules, foreign employees with a residence permit on the fast-track scheme's short-term track can extend their permit if they are not staying in Denmark for more than 90 days per year.

They are also no longer required to have a temporary permit when reapplying for a residence permit, so they do not need to undergo a new ID check by SIRI or record biometrics (facial image and fingerprints).

Extension of the job change rule

Foreign employees generally need a new work and residence permit when they change jobs. Under the job change rule, they are able to start a new job while their application for a new permit is being processed.

Now, this rule is extended to apply when the employee changes jobs and the basis of residence during the same job.

Danish bank account

Previously, it was a requirement that foreign employees had a Danish bank account to which salary could be paid. This no longer applies to those with a permit under the fast-track scheme, except for the supplementary pay limit scheme.

The deadline for opening a Danish bank account will be extended from 90 to 180 days for those still required to have one.

IUNO’s opinion

The new rules aim to make hiring foreign employees easier for companies in Denmark. The previous government focused on this issue, presenting a proposal on foreign labour in 2018. We have written about that here.

IUNO recommends that companies familiarise themselves with the new rules entering into force on 1 July 2024. The new regulations and extended deadlines will make it easier for companies to comply with the requirements for foreign employees. If the requirements are not met, companies may risk being fined.

[L 147 Act amending the Foreign Nationals Act of 4 June 2024]

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Anders

Etgen Reitz

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Hessellund Klausen

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Kirsten

Astrup

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Cecillie

Groth Henriksen

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Rikke

Grønlund Holm

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Johan

Gustav Dein

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Anders

Etgen Reitz

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Cecillie

Groth Henriksen

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Johan

Gustav Dein

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Kirsten

Astrup

Managing associate (on leave)

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Kjærsgaard Juhl

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Rikke

Grønlund Holm

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Aurora Braut Bache

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Søren

Hessellund Klausen

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