Danish posted worker fund recovers only 1% of unpaid wages

Foreign posted workers in Denmark rarely recover unpaid wages through the official state fund. The Labour Market Fund for Posted Workers has recovered only one percent of claims. Danish trade union 3F shared these figures from the employment minister.

AFU was established in 2016 to enforce EU rules on posted workers. It aims to protect temporary staff sent by foreign companies to Denmark. Denmark created the fund instead of full chain liability in construction. Full chain liability makes main contractors responsible for unpaid wages down the supply chain.

Union leader Claus von Elling called the low recovery rate a complete failure. Most claims are never recovered from foreign employers. The system fails especially when foreign workers do not join Danish trade unions. For non-union workers, AFU pays claims only after recovering money from employers. The fund has recovered money in only 0.2 percent of those non-union cases.

Danish companies hiring these subcontractors face no extra fees if AFU recovers nothing. This removes the financial incentive for Danish firms to monitor subcontractor pay practices. Union 3F wants Denmark to enforce extra fees whenever underpayment is proven. The union also supports full chain liability if AFU cannot be fixed. The fund covers workers registered in RUT, Denmark's Register of Foreign Service Providers. This story was originally reported by CPH Post.