New Rules on ID Cards and Labor Clauses in the Construction Industry
It has been politically agreed to introduce a number of new initiatives aimed at reducing the risk of social dumping.
ID Cards for Large Construction and Civil Engineering Projects
A mandatory ID card requirement will be introduced for construction and civil engineering projects with a value exceeding DKK 100 million. A bill introducing the ID card scheme was presented to the Danish Parliament, but due to the general election being called, the bill lapsed and will need to be reintroduced by the new government.
The ID card must contain the following information about the employee:
- Name
- Photograph
- Nationality
- CPR number (or an equivalent identification number if the individual does not have a Danish CPR number)
- Residential address, where the employer provides accommodation covered by the Danish Act on the Accommodation of Employees (Act No. 1445 of 10 December 2024)
- Job function
- Mandatory health and safety training required under Danish working environment legislation
- Employer's name, CVR number and, where applicable, RUT registration number (corresponding information is required for self-employed persons)
- In the case of hired-out labor, information about the company hiring in the cardholder
- Date of issue
All persons present on the construction site must carry an ID card. However, the requirement does not apply to persons who are not carrying out work on the site or who are only present for a short period, including for the delivery of mail or parcels. Such persons must instead carry a visitor pass and be registered in a visitor log.
All persons on the construction site who are required to carry an ID card must register the time they spend on site. The information collected may, among other things, be used by the authorities to monitor whether companies comply with labor market rules and conditions.
The Minister for Employment will issue detailed rules governing the issuance and operation of the ID card scheme, including whether the cards are to be issued by the Danish Working Environment Authority or by private providers.
The Minister for Employment may also issue rules requiring the ID card to include information about the employer and, for self-employed persons, their client.
In addition, the Minister may determine which information must be displayed visibly on the ID card and how the remaining information is to be presented.
Labor Clauses in All Public Construction Contracts
Labor clauses will become mandatory in all public construction contracts with a value of DKK 41.2 million or more. Labor clauses are already mandatory in central government contracts. The new rules will extend this requirement to the entire public sector.
Many municipalities and regions already include labor clauses in their contracts, often at contract values below DKK 41.2 million. Consequently, the statutory requirement is expected to have only a limited impact on the overall use of labor clauses.
Pilot Scheme for Proactive Exclusion
The Danish Public Procurement Act contains a number of mandatory and discretionary exclusion grounds under which tenderers may be excluded from procurement procedures, for example due to particularly serious legal violations.
A pilot scheme will therefore be established within a public authority whereby contracting authorities will be provided with additional resources to identify and collect documentation regarding infringements that may justify excluding tenderers under the exclusion grounds set out in the Public Procurement Act.
The scheme will be implemented in a public authority responsible for major public construction projects exceeding DKK 100 million, for example the Danish Building and Property Agency.
Littler's Comments
Companies operating in the construction industry should pay close attention to the new ID card requirements, including the use of the data collected through the ID card system.
The more consistent use of labor clauses means that companies - whether acting as main contractors or subcontractors - must ensure compliance with the requirements contained in those clauses. Main contractors may, under the labor clauses, be held responsible for ensuring that subcontractors also comply with the relevant labor clauses, applicable collective bargaining agreements and statutory requirements.
Littler Denmark is closely monitoring the implementation of the new legislation. If you have any questions regarding this article, please contact Senior Director Erik Simonsen.
Disclaimer: This article does not constitute, and cannot replace, legal advice.
Erik Simonsen
Senior Director
+45 44 14 30 96
