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Manual for companies involved in the construction of the Metro and the Light Rail in Greater Copenhagen

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Manual for companies involved in the construction of the Metro and the Light Rail in Greater Copenhagen What do companies need to know about the Danish labour market? What do companies need to know about
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Manual for companies involved in the construction of the Metro and the Light Rail in Greater Copenhagen What do companies need to know about the Danish labour market? What do companies need to know about the Danish labour market? Dear company, Welcome to this manual. The Danish labour market is part of the common European labour market for the free exchange of goods and services, and the free movement of labour across national borders. We would like to welcome all companies and their employees engaged in the construction of the Metro and the Light Rail in Greater Copenhagen, in the expectation that every company will familiarise itself in detail with: Trade union Main contractor Foreign company Employer Organisation Danish legislation The Danish labour market Relevant collective agreements The Danish labour market has a different structure to the labour markets in many other countries. For example, minimum rates of pay are agreed in collective agreements, but not stipulated in legislation.. Light Rail have created this manual in order to help you and your company to understand the Danish rules and collective agreements, and to ensure that this experience is passed on from company to company. The manual is intended especially to help foreign companies with limited or no experience from working in Denmark. The manual has been created with the help of the employer organisations, Dansk Byggeri (the Danish Construction Association), Tekniq (the Danish Mechanical and Electrical Contractors Association) and Dansk Industri (the Confederation of Danish Industry), as well as trade unions, contractors and relevant authorities. Our aim for this manual is to make it easier for companies involved in construction work for Metroselskabet and the Greater Copenhagen Light Rail to work in Denmark and to establish successful cooperation with public authorities, employer organisations and trade unions. We hope that you and your company will find the manual useful. It is not necessary to read the manual from beginning to end. Instead, you should use the manual as a reference, for instance to find answers to specific questions. We also suggest whom to contact if you have any questions. The guidelines referred to in the manual have been identified by Metroselskabet and the Greater Copenhagen Light Rail as important for foreign companies operating in Denmark, but do not constitute a complete list, nor do we take responsibility for any errors or omissions in the material. Although the manual includes guidelines and comments on the authorities' regulations, it is always the authorities' instructions and guidelines that apply. The employer organisations' and trade unions' interpretations of the collective agreements also apply. Please see the authorities' websites and relevant collective agreements for further information and references. The manual can be used as a tool to help you find your way around the various operators and roles in the Danish labour market. The figure above presents an overview of We hope you enjoy using the manual! the many parties that you, as a company, are required to relate to in the Danish labour Kind regards, market. Their various roles and tasks will be Metroselskabet and the Greater 2 described in this manual. Copenhagen Light Rail 3 Danish Working Environment Authority Other public authorities: International Citizen Service The Danish Business Authority Danish tax authority Lawyer Developed with inspiration from (Arnholtz and Andersen, University of Copenhagen, 2016) Accountant Bookkeeper Payroll agency Table of Contents CHAPTER 1: Focus areas of Metroselskabet and the Greater Copenhagen Light Rail 3 Requirements of pay and working conditions 8 Control and documentation of pay and working conditions 8 Together we can ensure trainee positions for apprentices 8 The construction project supports the Danish labour market model 9 CHAPTER 2: The Danish labour market and the collective agreements 11 Employer organisations 13 Trade unions 14 The industrial dispute system 14 - Actual burden of proof 14 - An industrial arbitration case can be expensive for the company 15 Which collective agreement? 15 Office employees and employees in managerial positions 16 Accession agreement 16 Union representatives 16 Health and safety representatives 17 Employment contract 17 Payslips and transfer of pay 18 Administration and payroll management 18 The actual pay level Piecework system 19 Working hours 20 - Overtime and overtime supplement 20 - Working hour agreements 20 - Weekly time slips and timesheets to register working hours 21 Pension 21 Healthcare insurance scheme 22 Illness and occupational injuries 22 Holiday pay 22 - Holiday card, holiday payment or holiday fund 22 - Compensation for loss of earnings where a public holiday falls on a working day, and extra days of holiday 22 Periods of notice of termination 23 Payments on account 23 Unemployment insurance funds 24 Contact details for employer organisations and trade unions 24 CHAPTER 3: Legislation and requirements applying to foreign companies operating in Denmark 26 Your company must be registered 29 - Special registration for companies providing temporary services 29 - Employees' status and registration 29 - Foreign employees are registered via International Citizen Services 29 You are responsible for your employees' residence and work permits 30 Communication with Danish public authorities 31 Healthcare services 31 Tax and VAT 32 - Tax on international hiring-out of labour 32 - Tax deductions 32 - Use of foreign-registered motor vehicles 32 - Employee accommodation and tax obligation 33 De-registration of the company on completion of the work 33 Payments to ATP, AES and financing contribution 34 Payments to the statutory occu-pational injury insurance scheme 34 Recognition of foreign qualifications 34 Obtaining authorisations for your employees 34 Your employees have a duty to present proof of identity 34 You have a duty to display the company's CVR/RUT number 34 Useful links and the authorities' contact details 37 CHAPTER 4: How to recruit employees in Denmark 39 Find new employees via Erhvervshuset 40 Find new employees via the unemployment funds 40 The relevant trade unions' unemployment funds are: 40 Assistance for the unemployed in the Danish labour market, via special schemes 41 Contact details for recruitment CHAPTER 1: Focus areas of Metroselskabet and the Greater Copenhagen Light Rail 6 7 CHAPTER 1: FOCUS AREAS CHAPTER 1: FOCUS AREAS Metroselskabet and the Greater Copenhagen Light Rail are developing public transport by planning, building and operating the Metro and Light Rail systems in Greater Copenhagen. We are two public companies owned by the Danish authorities. This means that our construction projects attract considerable public attention and impose a number of special obligations and considerations on us. This applies to such areas as pay and working conditions, the employment of apprentices in the construction work, and special initiatives and cooperation with the labour market parties. We take pride in constructing unique infrastructure projects and doing so in a proper way, whereby we take a special social responsibility. We are constructing the Metro and Light Rail throughout Greater Copenhagen and have entered into contracts with several different contractors. The contracts are developed over time, as new expectations and requirements are made. This means that our contracts are not identical, yet they share in common that certain focus areas which apply to all projects. Our focus is on assuring the quality of the construction work, compliance with the time schedule and budgets, and being a competent collaborator for our contractors and partners. It is very important for Metroselskabet and the Greater Copenhagen Light Rail to enjoy good collaborative relationships with our contractual parties. In this chapter, you can read more about our focus areas. Requirements concerning pay and working conditions In all contracts, Metroselskabet and the Greater Copenhagen Light Rail require employees engaged in the construction work to be paid and to have rights equivalent to the terms applying to local employees for the same type of work. Our requirements concerning pay and working conditions apply not only to the main contractor, but to all companies involved in the construction work. In the relevant collective agreements, companies can see the requirements set for the employees' working conditions, including working hours, minimum pay and holiday rules. The collective agreement thereby defines what the company must do in order to fulfil our contractual requirements concerning pay and working conditions. The collective agreement sets out a number of game rules for the workplace, enabling companies and employees to focus on the work required. As a company, you are not statutorily or contract - ually obliged to have a collective agreement, but Light Rail recommend that all companies involved in the construction work enter into a collective agreement. This is the easiest way for the company to ensure compliance with the contractual requirements concerning pay and working conditions. In practice, virtually all of the construction work is subject to a collective agreement. Read more about the collective agreements in Chapter 2. Control and documentation of pay and working conditions Light Rail will continuously ensure compliance with the contractual requirements concerning decent pay and working conditions. This control will concern main contractors as well as subcontractors. Light Rail therefore require the contractors to be able to document that the work is performed in accordance with the requirements concerning local pay and working conditions. It is important that the company is always able to present valid documentation as proof of this compliance. We also expect contractors themselves to undertake self-monitoring in the company or among their subcontractors, to ensure that employees have the right pay and working conditions. The company must be able to document how much the employees have worked, and what the employees have been paid for their work. The company may be required to present such documentation as employment contracts, payslips, any agreements concerning working hours, and timesheets. Together we can ensure trainee positions for apprentices Light Rail give priority to training apprentices within the various construction trades. For several years, we have made a targeted effort to ensure apprenticeships and traineeships as part of the Metro construction work. In cooperation with companies, employer organisations, trade unions and vocational colleges, it has been possible to establish a number of customised trainee positions for apprentices, as part of the construction project. Light Rail require the companies to employ apprentices in trades that are included in Danish vocational training programmes or equivalent education programmes in another country. This applies to apprentice electricians, construction apprentices within earthworks and concrete works, plumbing, heating and ventilation apprentices, apprentice welders and apprentice smiths and office administration apprentices. A trainee position in the construction of the Metro or Light Rail is part of the apprenticeship programme. The trainee position must therefore be instructive and of use in the apprentice's future work. The trainee position must ensure that apprentices gain instructive and varied practical experience. Besides the education programme, the trainee position must ensure that we train the best construction workers within the various trades. The construction project supports the Danish labour market model Light Rail are taking several initiatives to ensure that the Danish Labour market model is supported in the construction project, since this will help to ensure good pay and working conditions for everyone. We expect our partners to do the same. We expect our partners to do the same. The Danish model is based on how the companies are represented by the employer organisations, while the employees are represented by the trade unions. In practice, most of the companies involved in the construction work are members of employer organisations, but many employees are not members of a trade union. Even though Denmark has a strong tradition for civil engineering and construction workers to be members of a trade union, for many years the trade unions have found it more difficult to recruit members, and especially from among foreign workers. For the Danish labour market model to function optimally for the construction work, Light Rail would like to contribute to informing companies and employees of the regulatory conditions in the labour market, and employees' rights. We would also like to create good opportunities for communication between companies, employees and the labour market parties. The Danish labour market model is based on dialogue. At Metroselskabet and the Greater Copenhagen Light Rail we have therefore launched the following initiatives: Presentation meeting for new contractors to meet the labour market parties. Information boards on rights and working conditions at construction sites. Telephone hotline for employees to be able to contact trade unions, main contractors, Light Rail. Site offices for the trade unions at selected construction sites. Information material for employees describing their rights and entitlements. Ad-hoc meetings for dialogue with the labour market parties. Light Rail have clear expectations that the employees have decent pay and working conditions, that the companies comply with the collective agreement, and that the companies hire apprentices and cooperate with the labour market parties. This manual can help your company to live up to Metroselskabet and the Greater Copenhagen Light Rail's priorities and expectations. 8 9 CHAPTER 2: The Danish labour market and the collective agreements 10 11 CHAPTER 2: DANISH LABOUR MARKET AND COLLECTIVE AGREEMENTS CHAPTER 2: DANISH LABOUR MARKET AND COLLECTIVE AGREEMENTS P Checklist The Danish labour market and the collective agreements Investigate which employer organisation your company can benefit from membership of. Investigate which collective agreement(s) your employees should work under and consider how you can document your compliance with the collective agreement's requirements. Inform your employees that they can elect union representatives. Organise your administration and payroll management, for example with your own bookkeeping function or an external agency, and establish procedures so that bookkeepers and agencies get correct information and errors are avoided. Check that individual employees receive the correct pay. Make sure that payslips correspond to the requirements in the collective agreement. Make sure that you have correctly signed working hour agreements and that working hours are recorded and countersigned by employees and the company preferably on a daily or weekly basis. It is important that this can easily be documented. Make sure that pension schemes, and possibly also health insurance schemes, have been set up for all your employees. Check that sick leave and holiday pay are handled correctly. Consider whether it is a good idea to work on a piecework basis this is common in large parts of the Danish construction industry and has ensured high productivity levels. Consider whether your company should hold a joint meeting for the company's employees, in cooperation with the trade union. Photo: Ricky John Molloy PETER STENHOLM DIRECTOR OF THE DANISH CON- STRUCTION ASSOCIATION, EMPLOYER ORGANISA- TION Employer organisations specialise in helping Danish and foreign companies to understand collective agreements and legislation, making it as easy as possible for them to operate. The Danish Construction Association's members also send a signal to their customers that there are decent conditions at the workplace with regard to both the working environment, and pay and working conditions. I n Denmark, the labour market is built up on the basis of what is generally known as the Danish labour market model . Pay and working conditions are fixed in collective agreements established between employers and employees. The companies are represented by employer organisations, and the employees by the trade unions. A key aspect of the Danish labour market model is that the employer organisations and trade unions must themselves be able to resolve any disagreements. This means that the State can only regulate pay and working conditions to a limited extent. For companies subject to collective agreements, the minimum rates of pay and working hour agreements are legally binding, so that they have the same validity as statutory requirements. When you, as a foreign company, operate in Denmark, we expect you to familiarise yourself with how the Danish labour market functions, the requirements imposed on your company by the relevant collective agreements. If you are in any doubt, you should contact your employer organisation. At the end of this chapter there is an overview of relevant contact details for employer organisations and trade unions. Experience shows that it can be challenging to enter a new market, so that in this chapter we present various information and good advice on what you should be aware of, as a foreign company, before starting to operate in Denmark. Some details relating to the collective agreements are omitted from this chapter, just as certain details will not be relevant for all trade groups and collective agreements. As described in Chapter 1, Metroselskabet and the Greater Copenhagen Light Rail recommend that all companies involved in the construction work enter into a collective agreement. This can take place either by becoming a member of an employer organisation, or by entering into an accession agreement. Employer organisations In Denmark, most companies are members of an employer organisation. This organisation can, for example, help the company to interpret contractual clauses and find out which collective agreements are relevant for the company's work. An employer organisation can also represent the company in the event of any disagreement between the employees and the company. An employer organisation can provide advice and guidance and help the company in any cases of doubt. The employer organisation also represents many other companies and thus has access to a strong network of companies in the civil engineering and construction sector. Below is a list of the employer organisations that typically represent companies involved in the Light Rail's construction projects: Tekniq (the Danish Mechanical and Electrical Contractors Association): for companies performing technical installations, heating and plumbing, or electrical installations (www.tekniq.dk). Dansk Byggeri (Danish Construction Association): for companies undertaking civil engineering or construction work (www.danskbyggeri.dk). Dansk Industri (the Confederation of Danish Industry): for companies engaged in industrial production, assembly of technical installations, and transport (www.di.dk). If you are in any doubt as to which employer organisation you should be a member of, Dansk Arbejdsgiverforening (the Confederation of Danish Employers) (DA) will be able to assist you (www.da.dk) CHAPTER 2: TRADE UNIONS CHAPTER 2: TRADE UNIONS Trade unions There is a tradition for employees in Denmark to join a trade union. Within the civil engineering and construction sector, 70% of employees are members of a trade union. 1 Employees cannot be forced, nor may they be prevented or prohibited from joining a trade union. The trade unions representing the largest workforce groups involved in the construction of the Metro and Light Rail in Greater Copenhagen are: 3F/BJMF (United Federation of Danish Workers): for construction wor
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