Denmark

2. The state duty to protect human rights

2.4 Planned actions

Increasing the use of labour and social clauses in public contracts [page 16]

“Part of the foundation of the Danish labour market model is that work performed in Denmark must be performed on Danish pay and working conditions. In this, the authorities hold an important role in ensuring that underpaid foreign labour does not occur in public projects. The Government wants to ensure fair and reasonable pay and working conditions in accordance with ILO Convention 94 by increasing the use and better enforcement of labour clauses in public contracts (GP 5).

The following initiatives are planned:

• The current labour clause threshold value of approximately DKK 37.5 million for public construction projects included by the labour clause requirement will be abolished. In the future, governmental contracting authorities (including companies that are fully owned by governmental authorities and not in competition) must use labour clauses in all public tender calls for construction projects.
• Furthermore, it has been agreed that Danish municipalities and regions in the future will use labour clauses to a further extent in the same manner as governmental contractors.
• Finally, more and better information on the use of labour clauses will soon be available in written form and on the internet.

The Government also wants to increase the voluntary use of social clauses in connection with public tenders. Many public authorities already use or are considering using social clauses. To assist with this work, a number of cases will be prepared to demonstrate how companies and municipalities work with social clauses in practice (GP 5).”