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Getting employees – the Danish labour market
The Danish labour market is constructed and regulated in a way that ensures you the most productive, flexible and secure working conditions possible. The Danish labour market is internationally known for its ‘flexicurity model’. A mix of the terms ‘flexibility’ and ‘security’, this concept refers to a welfare state model that combines a flexible labour market with social security for all workers. Most labour market issues are settled by employers and employees rather than by law.
What are the rules for hiring in Denmark?
As an employer in Denmark there are some basic rules you need to know about when hiring foreign labour.
You need to be registered as an employer on virk.dk. You also need to have a contract with the employee that you are taking in your company. As a company, you need to withhold A-tax and therefore you need a reporting system which takes pension, holiday pay and other fees into account, especially when the contract is for more than 8 hours a week. We recommend that you outsource this difficult and time consuming task to an accountant or an agency.
Work in Denmark has a section dedicated for employers on the website workindenmark.dk.
Hiring foreign labour
When you employ foreign labour, the employees are liable to pay tax in Denmark from the first day of work.
Read more about the Danish Tax Agency
If you have questions on more specific rules within your field of work you can contact your a trade union.
See more at 'What is a trade union (fagforening)?'
Which recruiting agencies are relevant for my business?
Private agencies can help you find employees but you can also engage the municipality of Copenhagen to gain access to a pool of qualified candidates to boost your business.
Business House Copenhagen can help you with the whole recruitment process from explaining what you need in the job to finding the right candidate and giving advice on employment contracts. When you employ someone through the municipality, you can use the beneficial schemes that we have such as internship (up to 2 months) or subsidised pay (up to 6 months).
You can contact us for more information.