Understanding the Danish labour market

Wages and other working conditions are determined by collective agreements

In Denmark the government is not in charge of determining wage levels or working hours. Instead, the unions - representing the employees - and the employers’ associations negotiate collective agreements, which determine e.g. minimum wages for particular areas as well as working conditions relating to illness, parental leave and pensions.

In Denmark, collective agreements vary from industry to industry, ensuring that the rules are adapted specifically to e.g. transport, manufacturing or service businesses. Most employees in Denmark are covered by a collective agreement.

This is not the case in most other countries, where rules on e.g. working hours, overtime work, notices of termination and wages are determined by politicians and put into statutory form through legislation covering all or parts of the labour market. 

DI’s role

DI (short for Dansk Industri) is Denmark’s largest employers' association and therefore plays a central role in the collective bargaining process in the private-sector labour market.

DI negotiates about 200 collective agreements, The Industrial Agreement (Industriens Overenskomst) covering most employees.

18,000 Danish companies are members of DI. Most of them have chosen to be part of at least one of the collective agreements negotiated by DI. Among them are several temp agencies.

VikarBranchen’s role

Some of the temp agencies have formed an association of their own called VikarBranchen.

To be accepted as a member of VikarBranchen, the temp agency must prove to a neutral and external accountant that their temp workers are treated well.

VikarBranchen’s agencies must provide documentation that they pay their workers a correct and timely salary which is in accordance with their collective agreements.

If their documentation is approved by the accountant, they will receive a certificate as a proof of their membership.

Here is the list of temp agencies in VikarBranchen:
https://www.danskindustri.dk/medlemsforeninger/vikarbranchen/medlemmer/