On 5 October 2022, the Government presented the legislative program for the parliamentary year 2022/2023, which included several changes to employment law provisions. The employment legislative program includes changes to rules for employers providing housing to employees, amendments to the Act on the Labour Market Fund for Posted Workers, and a proposed bill on employment certificates and certain working conditions.
We have provided a summary of the whole legislative program below.
Amendments to the Act on Equal Treatment (Implementation of the Tripartite Agreement on initiatives to combat sexual harassment in workplaces) (Oct I)
The bill aims to ensure a clear regulatory framework in cases of sexual harassment, higher compensation in serious cases, and a better legal protection for students and apprentices who have subject to sexual harassment. The bill implements the tripartite agreement to counter sexual harassment in workplaces from March 2022.
Act on requirements for employers who provide housing for employees (Oct I)
The bill aims to introduce a general requirement for employers who provides housing for one or more employees, to ensure good and modern housing conditions. In addition, it is proposed that the Danish Working Environment Authority should supervise whether the employers are complying with this condition.
The bill is a follow-up to the agreement on a new reform package for the Danish economy between the government (social democrats), the Socialist People’s Party, the Radical Liberal Party, the Danish People’s Party, and the Christian Democrats from January 2022.
Amendment of the Act on Temporary Child Allowance (Extension of the temporary child allowance for 2023) (Oct I)
The bill aims to extend the temporary child allowance until the end of 2023, after which the new cash assistance system will enter into force. The temporary child allowance provides a temporary financial boost to children in families affected by the cash benefit ceiling and the SHO benefit. The bill is a follow-up to the agreement on a new cash assistance system between the government (Social Democrats), Socialist People’s Party, Radical Liberal Party, Unity List, The Alternative and Christian Democrats from June 2022.
Amendment of the Act on the Labour Market Fund for Posted Workers (Implementation of the Danish Employers’ Association and the Trade Union Confederation’s agreement on principles for adjustment of the Labour Market Fund for Posted Workers, etc.) (Oct I)
The bill aims to implement an agreement between the Trade Union Confederation (FH) and the Danish Employers’ Association (DA) on adjustments to the Danish Labour Market Fund for Posted Workers. The bill also ensures protection of information regarding the employees’ identity in connection with the processing of an outstanding salary claim, etc. In addition, a mandatory system of reassessment of the fund’s decisions is introduced.
Amendment of the Workers’ Compensation Act (Composition of the Occupational Diseases Committee in the Handling of Veterans’ Cases concerning Mental Illness) (Oct I)
The purpose of the bill is to create a legal basis for psychological work injury cases, relating to previously deployed veterans, to be dealt with in the Occupational Diseases Committee with the participation of experts in this area. The bill is a follow-up to the Danish Parliaments agreement on the better treatment of veterans’ work injury cases from March 2022.
Amendment of the Maternity Compensation Act and the Maternity Leave Act (Regulation of the contribution rate in the maternity compensation scheme in the private labour market and notice period for postponement of leave) (Oct II)
The contribution rate in the maternity compensation scheme in the private labour market is adjusted annually on the recommendation of ATP’s Board of Directors. This legislative requirement is required due to the contribution rate being regulated by law. The bill provides a notice period for court-based postponement of leave in the Maternity Leave Act from 8 to 6 weeks, which was not implemented by Act No. 343 of 22 March 2022.
Act on Employment Certificates and Certain Working Conditions (Nov I)
The bill aims to improve the working conditions of employees by promoting more transparent and predictable recruitment process. The legislative proposal implements Directive 2019/1152 on transparent and predictable working conditions for workers in the European Union (Working Conditions Directive), which requires minimum rights to be established for all workers in the Union.
Amendment of the Act on Active Employment Initiatives, the Act on Sickness Benefits and various other acts (More targeted offers, extended possibility of conversations via video or telephone, simplification of follow-up in stricter supervision, etc.) (Nov I)
The bill aims to support the restructuring of the employment area in Denmark such as upskilling and reducing the administrative work in the job centers. Furthermore, the bill aims to give unemployed people the opportunity to choose whether interviews should be held in person, by telephone or in person digitally (video) within the first six months of unemployment. The bill is a follow-up to the second sub-agreement on rethinking the employment effort between the government (Social Democrats), the Socialist People’s Party, the Unity List, the Danish People’s Party and Bent Bøgsted on behalf of the working community of non-attached Members (Liselott Blixt, Hans Kristian Skibby, Karina Adsbøl, Marie Krarup and Lise Bech) from June 2022.
Amendment of the Working Environment Act, the Workers’ Compensation Act, the Aliens Act and the Act on posting of employees, etc. (Implementation of parts of the agreement on a new reform package for the Danish economy, agreement on initiatives in the asbestos area, recommendations from the temporary AMO Committee, etc.) (Nov I)
The purpose of the bill is to ensure that companies that repeatedly violate the Working Environment Act and the posting rules, without showing the willingness to correct the situation are to be monitored more closely by the Danish Working Environment Authority. In extreme cases of non-compliance, and as a last resort, the bill provides that construction sites may be temporarily closed until the working environment conditions are put in order (construction site ban).
A further aim of the bill is to strengthen efforts against the use of illegal labour, by introducing requirements for employers to ensure that employees, at the request of the Danish Working Environment Authority and the Danish Agency for International Recruitment and Integration (SIRI), present identification document. In addition the provisions will require more information to be provided the Register of Foreign Service Providers (RUT). These parts of the bill are a follow-up to the agreement on a new reform package for the Danish economy between the government (social democrats), Socialist People’s party, the Social-Liberals , the Danish People’s party, and Christian Democrats from January 2022.
The bill also aims to implement parts of the recommendations of the temporary AMO committee on improving the protection of the health and safety representatives and clarifying the rules on workplace assessments. Finally, the bill aims to implement parts of the agreement on initiatives in the asbestos area between the government (Social Democrats), the Liberal Party, the Socialist People’s Party, the Social-Liberals, the Unity List, the Conservative People’s Party, the Danish People’s Party, the New Right, the Liberal Alliance, the Free Greens, the Alternative and the Christian Democrats from May 2022, as well as to give the Danish Working Environment Authority and the National Research Centre for the Working Environment access to additional information in the income register, etc.
Amendment of the Act on active employment initiatives (Extension of the right to education for persons who have worked in the mink industry or ancillary occupations, within a pool up to and including 2023) (Nov I)
The bill extends the right to training of unemployed people who have worked in the mink industry or ancillary occupations, and gives unemployed people in the target group, the right to education in 2023. The bill is a follow-up to item 7 of the agreement on compensation etc. for mink farmers and related industries affected by COVID-19 between the government (The Social Democrats), the Liberal Party, the Radical Liberal Party, the Socialist People’s Party and the Liberal Alliance from January 2021.
Amendment of the Social Pension Act and the Act repealing the Social Pension Fund Act (Granting of early retirement seniority for periods during primary school and repeal of the Social Pension Fund) (Nov II)
The purpose of the bill is to make it possible to include periods of further/supplementary education in the seniority calculation for early retirement. The bill will allow for periods of further/supplementary education to be counted for seniority purposes, when an individual as part of their employment, has been educated to a relevant level of education within the same industry. The bill is a follow-up to the agreement on a new right to early retirement between the government (Social Democracy), the Danish People’s Party, the Socialist People’s Party and the United Party from October 2020. The bill also repeals the law on the social pension fund, as the fund no longer contains funds.
Amendment of the Act on Active Employment Initiatives (Extension of the education promise with an increased unemployment benefit rate of 110 per cent up to and including 2023) (Nov II)
The bill aims to give the right to vocational education in connection with those jobs that are on the positive list. This right will apply for recipients of unemployment payments who have reached the age of 30. The right applies to unskilled or skilled workers with outdated qualifications. Recipients of unemployment payments who participate in vocational training under the education promise, will receive unemployment benefits in an amount equal to 110 per cent of the individual’s previous unemployment benefit rate, but no more than 110 per cent. The bill is a follow-up to the agreement on a new reform package for the Danish economy between the government (social democrats), the Socialist People’s Party, the Radical Liberal Party, the Danish People’s Party and the Christian Democrats from January 2022.
Temporary Job Premium for Recipients of Cash Benefits Act (Dec I)
The bill introduces a temporary job premium scheme for benefit recipients in the cash assistance system who in January 2024, have received benefit for at least 1 year within the last 3 years. The premium will be DKK 5,000 tax-free, which will be paid as a lump sum when benefit recipients leave the cash assistance system and enter employment for 6 consecutive months. The bill is a follow-up to the agreement on a new reform package for the Danish economy between the government (social democrats), the Socialist People’s Party, the Radical Liberal Party, the Danish People’s Party and the Christian Democrats from January 2022.
Amendment of the Act on social pensions and the Act on the highest, middle, increased ordinary and ordinary early retirement pension, etc. and the Act on individual housing benefit (Abolition of income adjustment due to the pensioner’s own income from work in the basic amount of the state pension and pension supplements, adjustment of the rules for more reasonable pension calculations, etc.) (Dec I)
The bill aims to make it more attractive for seniors to contribute actively to the labour market after the state pension age. The bill also includes adjustments in the calculation of pensions to make the calculations more reasonable. The bill is a follow-up to the agreement on a new reform package for the Danish economy between the government (Social Democrats), the Socialist People’s Party, the Danish People’s Party, the Christian Democrats and the Radical Liberal Party from January 2022.
Amendment of the Workers’ Compensation Act and various other acts (A political agreement on the area of industrial injuries and easier access to compensation in connection with violence at work) (Jan II)
The purpose of the bill is to improve the connection to the labour market for injured persons and implement measures to support faster case processing in workers’ compensation cases. The aim of the bill is to ensure that injured persons have clarity on their financial situation as soon as possible. In addition, the proposal increases the compensation sums for occupational injuries. Finally, the bill aims to facilitate access to full compensation for employees who are subjected to violence at work. This part of the proposal is a follow-up to motion for a resolution no. B 46 from the parliamentary year 2018/19. The bill is a follow-up to the agreement on an improved workers’ compensation system between the government (Social Democrats), the Liberal Party, the Socialist People’s Party, the Radical Liberal Party, the Conservative People’s Party, the Danish Democrats, the Danish People’s Party, the New Right, the Liberal Alliance and the Alternative from September 2022.
Amendment of the Act on active employment initiatives, the Act on the organisation and support of employment initiatives and the Act on active social policy, etc. (Adjustment of flexi-jobs and early retirement) (Jan II)
The bill aims to implement adjustments to the reform of early retirement and flexi-jobs from 2013. The bill is a follow-up to the memorandum of understanding “Fair direction for Denmark” from June 2019 and the agreement on better resource processes between the government (Social Democrats), Socialist People’s Party, Radical Liberal Party, Liberal Party, Conservative People’s Party and Liberal Alliance from December 2020.
Employment Welfare Agreements Act (Feb I)
The purpose of the bill is to implement a future agreement on welfare municipalities in the employment area, where employment efforts in four selected municipalities are freed wherever possible from state regulation. The bill is, among other things, a follow-up to the agreement between the government and Local Government on the municipalities’ finances for 2023 from June 2022.
Amendment of the Act on active employment initiatives, the Act on active social policy, the Act on the integration of foreigners in Denmark, etc. (37-hour work obligation) (Feb I)
The bill aims to implement the proposal for 37-hour work obligation from the government’s initiative “Denmark can do more I” from September 2021.
Amendment of the Maternity Act, the Act on Active Social Policy and various other acts (Introduction of the right to leave and maternity benefits, etc. for legal parents/co-fathers on the basis of altruistic surrogate agreements) (Feb I)
The purpose of the bill is to ensure that legal parents/co-fathers who have concluded surrogate agreements after 1 July 2023, where the surrogate mother does not receive compensation, have rights under the Maternity Leave Act, the Act on Active Social Policy, etc. in line with other parents. The bill follows a proposed amendment to the Children’s act, which will recognize legal parents and co-fathers based on those surrogate agreements.
Amendment of the Act on sickness benefits, etc. (Follow-up to critical review of the sickness benefit reform) (Feb II)
The purpose of the bill is to implement changes to the Sickness Benefit Act, etc. as a result of the Minister for Employment’s critical review of the sickness benefit reform.
Amendment of the Act on active employment initiatives, the Act on the organisation and support of employment initiatives, etc. and the Act on unemployment insurance, etc. (A simplified contact process and permanence of experiments on job-oriented efforts) (Feb ll)
The purpose of the bill is to simplify the contact process for insured unemployed persons and to give the unemployment insurance funds responsibility for the contact process during the first three months of unemployment. The bill is a follow-up to the second sub-agreement on rethinking the employment effort between the government (Social Democrats), the Socialist People’s Party, the Unity List, the Danish People’s Party and Bent Bøgsted on behalf of the working community of non-attached Members (Liselott Blixt, Hans Kristian Skibby, Karina Adsbøl, Marie Krarup and Lise Bech) from June 2022.
Amendment of the Act on Active Social Policy and others (Implementation of the agreement on a new cash assistance system with room for the children) (Feb II)
The bill aims to ensure that children of parents in the social security system grow up with the same opportunities to be part of the community as their peers, while still having a clear financial gain from taking a job. The bill is a follow-up to the agreement on a new cash assistance system with room for children between the government (Social Democrats), Socialist People’s Party, Radical Liberal Party, Unity List, Alternative and Christian Democrats from June 2022.
One-time Compensation For The Abolition of Green Check Act (Feb II)
The purpose of the bill is to pay a one-time compensation of DKK 500 in 2023 for the green cheque, which was abolished as part of the agreement on a new reform package for the Danish economy from January 2022. The bill is a follow-up to the agreement on a new cash assistance system with room for children between the government (Social Democrats), Socialist People’s Party, Radical Liberal Party, Unity List, Alternative and Christian Democrats from June 2022.
Amendment of the Act on Working Environment in Greenland (Psychological working environment, company cooperation on health and safety, strengthening of requirements for workplace assessment, extension of the Danish Working Environment Authority’s reaction possibilities, collection, processing and disclosure of data, agreement process with companies, increased level of fines, etc.) (Feb II)
The purpose of the bill is to revise the Greenlandic Working Environment Act so that it is in line with the standards of the current Danish Working Environment Act to the extent that it makes sense for the Greenlandic labour market.
We send newsletters as the legislative proposals are introduced.
The government’s entire legislative program for the parliamentary year 2022/2023 can be read here (in Danish):
This article was first published on 21 October 2022 by our Danish member firm Mette Klingsten Law Firm. To know more about our member and see how they can assist you, please visit their website.
