Sharing data to comply with labour clauses
The Danish Data Protection Agency has issued guidance on when contractors may share employee data with contracting authorities. The Agency confirms that a legitimate interest can be the legal basis for documenting compliance with labour clauses.
Labour clauses aim to ensure that contractors offer fair pay and working conditions to prevent social dumping. Often, contracting authorities will require contractors to document their compliance with such clauses. Examples of documentation include employment contracts or pay slips.
The Danish Data Protection Agency confirms that contractors can use legitimate interest in this context. As a general rule, there will be compelling interests in documenting compliance with the labour clauses.
However, legitimate interest is not a carte blanche to share employee data. Only data that is necessary can be shared, and the employees' interest in not having their data shared must always be taken into account. In this connection, the Danish Data Protection Agency emphasised that sharing data for the purpose of labour clauses typically serves the interest of the employees.
IUNO’s opinion
Sharing employee data across different legal entities is not only relevant in connection with labour clauses. The same need often arises within groups or as part of the transfer of an undertaking. In these scenarios, it is also essential to establish a legal basis before sharing data and ensuring only necessary data is shared.
IUNO recommends that your company has fixed procedures in place to ensure a good basis before disclosing employee data. Employee data often includes detailed personal information and can quickly reveal confidential and sensitive categories of data. The recommendation is the same regardless of whether disclosure occurs within the group or with external third parties.
[The Danish Data Protection Agency's statement on the disclosure of personal data to document compliance with labour clauses of 20 November 2025]
Labour clauses aim to ensure that contractors offer fair pay and working conditions to prevent social dumping. Often, contracting authorities will require contractors to document their compliance with such clauses. Examples of documentation include employment contracts or pay slips.
The Danish Data Protection Agency confirms that contractors can use legitimate interest in this context. As a general rule, there will be compelling interests in documenting compliance with the labour clauses.
However, legitimate interest is not a carte blanche to share employee data. Only data that is necessary can be shared, and the employees' interest in not having their data shared must always be taken into account. In this connection, the Danish Data Protection Agency emphasised that sharing data for the purpose of labour clauses typically serves the interest of the employees.
IUNO’s opinion
Sharing employee data across different legal entities is not only relevant in connection with labour clauses. The same need often arises within groups or as part of the transfer of an undertaking. In these scenarios, it is also essential to establish a legal basis before sharing data and ensuring only necessary data is shared.
IUNO recommends that your company has fixed procedures in place to ensure a good basis before disclosing employee data. Employee data often includes detailed personal information and can quickly reveal confidential and sensitive categories of data. The recommendation is the same regardless of whether disclosure occurs within the group or with external third parties.
[The Danish Data Protection Agency's statement on the disclosure of personal data to document compliance with labour clauses of 20 November 2025]
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