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Another relaxation of the Eastern Europe Agreement

July 2007 - Employment. Legal Developments by Norrbom Vinding Law Firm, member of ius laboris.

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The Danish political parties behind the Eastern Europe Agreement recently agreed to further relax the Agreement, which is a transitional scheme to help Danish businesses recruit from the 10 new EU Member States (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia).

 

As a result, individuals from those countries will no longer be required to have a residence and work permit if employed to carry out work covered by a collective agreement. Similarly, specialists, scientists and teachers will also be exempt from the residence and work permit requirement if their employer has entered into a collective agreement.

The political agreement does not expressly say whether salaried employees in managerial positions will also be covered by the relaxed rules, but since salaried employees in managerial positions are covered by the same statutory provision which governs scientists, teachers and specialists, it would seem obvious for also salaried employees in managerial positions to benefit from the relaxed rules.

Although some individuals from the new EU Member States will thus be exempt from the residence and work permit requirement, they will still - like nationals of the other EU Member States - need an EU residence certificate if their stay in Denmark exceeds 3 months.

The political agreement also contains the following elements:

- Monitoring the influx of foreign labour

- Stricter regulatory control of foreign companies' and foreign workers' compliance with Danish law with respect to taxes, working environment and residence

- Providing a framework for the social partners to work together to ensure that foreign companies will be covered by a Danish collective agreement

- Improving information about the Danish labour market to foreign companies and employees on secondment in Denmark

The political agreement will of course be followed up by legislative proposals to amend the existing rules. The legislative proposals are expected to be launched in time for them to become operative on 1 January 2008.

For further information please contact

Marianne Granhøj

mg@norrbomvinding.com

T +45 35 25 39 40

Elsebeth Aaes-Jørgensen

eaj@norrbomvinding.com

T +45 35 25 39 40

www.norrbomvinding.com