According to section 7a of the Danish Secondment Act, a foreign company which is seconding employees to Denmark is required to register information regarding the stationing in the RUT-register. The purpose of the RUT-register is for the authorities to secure the enforcement of those of the Danish labor law rules which applies for foreign employees who work in Denmark, especially the Danish Working Environment rules.
As a result of an increased effort on social dumping, the Danish Parliament has on 19 February 2015 passed a motion to the Act concerning Porting of workers. According to the new rules, the penalty (fine) in relation to the duty of registration in RUT will be increased when a company violates the rules severely, for example by repeatedly avoiding fulfilling the duty of registration which has been an increasing problem.
The level of the fine is not directly regulated by the Act but is normally approximately DKK 10,000. However, the authorities have been imposing fines up to DKK 20,000 as well, depending on how severe the violation was. According to the new rules, the fine will be doubled if the company does not fulfil the requirements for registration or in other ways violates the rules. This will now be evident directly from the Act.
The level of the fine, however, may also be subject to an individual assessment by the courts. The level of the fine depends on the case and the circumstances within, and the court take into account for both aggravating and mitigating circumstances.
The law will become effective from 1 March 2015.
Thus, there is an increased focus from the authorities regarding registration in RUT for which reason it is very important for non-Danish companies which are seconding employees to Denmark to register and to register correctly. Bird & Bird has extensive experience in registration in the RUT-register so please feel free to contact us on this matter and we will assist you every step of the way.