Increased flexibility for certified companies
New proposition from the government
31 January 2024
Danish bank account requirement to be abolished for certified companies
Background
Since 2017 it has been mandatory for employees under most work schemes to have their salary paid into a Danish bank account, which has put an administrative burden on Danish companies employing foreign nationals.
New proposition
The government has proposed to abolish the bank account requirement for companies that are certified to employ foreign nationals. The exemption will cover permits under the Fast Track Scheme’s pay limit-, researcher-, educational- and short-term tracks as well as residence permits for researchers (Forskerordningen).
For the work schemes still covered by the Danish bank account requirement, the proposition is to extend the deadline for setting up a Danish bank account from 90 days to 180 days.
This is a much-welcomed change that will alleviate administration and increase the flexibility for companies that are hiring internationally, since the international work force is only expected to increase in Denmark.
Other suggested changes
- The government also proposes that the job change rule should also cover foreign nationals, who change basis for residence in Denmark. This could for example be when switching to a residence permit type with longer validity, which will ensure that the employee do not need to stop working while the processing for the new permit takes place.
- There should be a possibility to extend a stay under the Fast Track scheme’s short-term track.
The suggested date for the new rules to come into effect is 1 July 2024.
We will follow the case closely for any updates.
If your company has more than 10 full-time employees and would like to become certified, please reach out to our team.
