
New Legislation on Contractor Stop at Construction Sites
The Danish Working Environment Authority (Arbejdstilsynet) is granted additional instruments in the fight against social dumping and will in the future be able to stop ongoing construction projects if the working environment is not satisfactory
Per July 1, 2025, the Working Environment Authority will have a new tool to address contractors who do not comply with workplace safety regulations. The Danish Parliament passed a bill on March 27 concerning contractor stops and an increase in the fine levels. This bill is part of the political agreement that the government and several parties entered into on May 23, 2024, aimed at strengthening the efforts against social dumping in Danish workplaces.
The bill is designed to enhance the enforcement options available to the Working Environment Authority, thereby serving as an additional incentive for companies at construction sites to prioritize workplace safety.
The bill stipulates that the Working Environment Authority, in special circumstances, has the option to issue orders to halt all work at a construction site for both contractors and subcontractors (a so-called contractor stop) until the specific issue has been addressed. This can be done if multiple companies repeatedly ignore orders from the Working Environment Authority and/or commit serious violations of workplace safety regulations.
A contractor stop can, therefore, have serious consequences not only for the company violating the rules but also for other stakeholders in the construction chain, including both the client and the main contractor.
In addition, the bill includes an increase in the fine levels for companies that commit serious violations of workplace safety regulations.
The Process Leading Up to a Contractor Stop
The Working Environment Authority can only impose a contractor stop in cases where multiple attempts have been made to rectify working environment violations. The bill outlines a number of conditions that must be met before the Working Environment Authority can initiate a contractor stop:
- The Working Environment Authority must have intensified its supervision of the construction site for approximately 4 weeks and have previously notified the contractor in writing.
- The contractor and at least one subcontractor, or at least two subcontractors on the construction site must have received multiple orders from the Working Environment Authority regarding violations of workplace safety regulations during the period of intensified supervision, concerning issues that must be rectified immediately due to significant risks to the safety or health of employees or others.
- Based on the character of the violations and the number of orders, the Working Environment Authority must assess that there is an imminent risk that the orders to the contractor and subcontractors are insufficient to ensure the necessary prevention of serious workplace accidents and health-damaging exposures at the construction site.
- During the intensified supervision, the Working Environment Authority must have notified the contractor in writing about the risk of an order for a contractor stop.
- Within approximately one week after the notification, the Working Environment Authority must have issued further orders to the contractor or a subcontractor.
Littler Notes
With the new legislation, the Working Environment Authority gains a potentially effective and invasive tool against contractors that fail to meet Danish workplace safety regulations.
It is particularly important for clients and main contractors to be aware of the new rules, as the consequences of violations will affect not just the individual contractor but the entire construction chain. In the worst-case scenario, a contractor stop can lead to project delays, resulting in significant costs.
The rules can be seen as a step towards imposing greater responsibility on clients and main contractors to ensure a safe and healthy working environment throughout the construction chain.
Therefore, we recommend that both clients and main contractors ensure adequate attention is paid to subcontractors' compliance with workplace safety regulations, both when entering into contracts and during ongoing supervision.
For questions regarding the article and the new rules, please contact partner Christian Bonne Rasmussen at
Disclaimer: This article is not and cannot replace legal advice.