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Denmark increases fight against social dumping

More fines for foreign companies and labour clauses in public contracts - these are the newest weapons in Denmark’s fight against social dumping. They will have an impact on social dumping but won’t eradicate it, thinks expert.
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Facts
Denmark increases its fight against social dumping:  
  • A foreign company must declare its VAT number to RUT to allow tax authorities control over whether it provides services across borders.
  • Shorter deadlines for reporting to RUT
  • Public access to more information stored by RUT
  • The Working Environment Agency can issue fines to companies which break their duty of notification
  • More resources for SKAT (the Danish tax authority) to control what tax foreign companies pay
  • Increased use of labour clauses in public tenders
  • Better controls to ensure foreign trucks observe the Danish highway code - so-called cabotage.

Source: The Ministry of Employment

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