Increased flexibility in relation to international employment

When an employer is looking for an international employee, it is crucial to know the rules on visas and work permits.

The Danish Parliament passed bills at end of November 2023 and at the beginning of June 2024, the purpose of which is to make it more simple for businesses in Denmark to use foreign labour.

The most important amendments are removal and relaxation of the requirement for a Danish bank account in relation to specific work schemes and the introduction of a rule on exemption of visa for employees employed with foreign companies affiliated with a Danish company.

Rules currently in force

Foreign employees must have a work permit to work in Denmark, unless they are EU or Nordic citizens, are covered by a permanent residence permit or other residence permit, according to which work in Denmark is permitted.

If a work permit is required, there are several so-called work schemes, of which the following are the most commonly used:

• Fast-Track scheme
• Pay Limit scheme
• Positive Lists

In addition, there are also special rules on visa for business visits and exemption of visa for guest teachers, artists, board members, fitters, etc.

Amendments as of November 2023

At the end of November 2023, a special rule was passed on the exemption of visa for foreigners employed with a business abroad affiliated with a Danish business.

The exemption applies if;

• The affiliated business in Denmark has at least 50 employees and is registered with the Danish Central Business Registration (in Danish: CVR).
• The business abroad and the business in Denmark are affiliated.
• The foreign employee is employed with the affiliated business established abroad.

Under the visa exemption rule, the foreign employee may travel to Denmark and perform work without a work permit for 15 working days for up to two separate working periods in a 180-day period.

The employer must be able to provide documentation that the employee is covered by the visa exemption rule, including that the work involves affiliated businesses.

However, the exemption does not apply to special industries, including construction, agriculture and hotel and catering.

New amendments as of June 2024

The recently passed bill contains three amendments of the rules on work permits.

First, the bill contains a possibility of extending a residence and work permit granted under the Fast-Track scheme’s so-called short-term track.

Secondly, the bill contains an extension of the job change rule with the effect that the rule also covers the situations where the foreign employee wishes to change the grounds for residence during an ongoing employment. The amendment implies that the foreign employee may continue working while the application is being processed.

Thirdly, the bill contains an amendment of the requirement for a Danish bank account.

This requirement is removed completely as regards the researcher scheme and the Fast-Track scheme’s general pay limit track, education track and short-term track, while the requirement for a Danish bank account as regards the other schemes is extended from 90 to 180 days.

The new bill came into effect on 1 July 2024.

Why is it so important?

It is decisive to know the rules on visa and work permits before employers employ international employees or invites a business contact as the employer otherwise risks that the employee or business contact will be rejected at the Danish borders.

If an employee or a business contact travels to and works in Denmark without the required permit, the employer may be punished with a fine or imprisonment.

At the same time, it is also important to be able to advise the foreign employee on the requirements applying to the employee, including any requirements for a Danish bank account.