Have you obtained an A1 certificate for your employee(s) in Denmark?
If your Danish employees travel outside Denmark, it is important to clarify social security coverage when your employees work abroad.
Information for employers
A Danish employee who is also working abroad, for example in other Nordic countries, is not automatically covered by Danish social security.
When an employee leaves Denmark for a short or longer period of time to work, including e.g., business trips or postings, inside the EU/EEA and Switzerland, the employer must clarify, which social security system the employee is covered under, during the work abroad. Often, the employee will still be covered by Danish social security when working abroad, which means that the employer does not have to pay social security contributions in other countries.
In order to avoid claims for social security contributions from other countries, the employer must apply for an A1 certificate, which confirms that the employee is covered by Danish social security during the stay abroad. Also, the company or customer visited by the employee risks to be fined, if the employee cannot show a valid A1 certificate to the foreign authorities.
What is social security cover?
Being covered by social security in a country means that it is the rules of the country in question that govern, whether the employee is entitled to security benefits in the respective country.
Social security benefits in Denmark cover for example:
- Health insurance
- Sick pay and maternity/paternity benefits
- Industrial injury insurance (AES)
- Danish labour market supplementary pension (ATP)
Who is covered?
Persons covered are nationals of a Member State, but third-country nationals who have been granted a residence permit may also be covered.
However, special rules apply to Denmark, and it is therefore the Danish national rules that must be applied to third-country nationals with a residence permit in Denmark. We are of course happy to assess whether your employees will be covered by social security in Denmark.
Who can remain entitled to social security in Denmark?
A number of conditions must be met before the employee can remain entitled to social security in Denmark when posted or working abroad.
Some of the conditions are as follows:
- The employee has been posted to another EU/EEA country and Switzerland for no longer than three years. In certain situations, the employee may be refused access to the workplace/location abroad if an A1 certificate is missing.
- The employee is working in two or more EU/EEA countries and Switzerland, but no less than 25% of the time in Denmark. For example, employees who go on business trips as part of their job.
- The employee is posted to a convention country.
- The employee is living in Sweden and working in Denmark.
Apply for an A1 certificate
The company or employee must apply for an A1 certificate from Udbetaling Danmark. The A1 certificate is valid for up to one year and is documentation for the Danish authorities’ decision, that the employee is covered by the Danish rules on social security.
LEAD I Rödl & Partner is of course happy to help you obtain the A1 certificate and handle the dialogue with the authorities in connection with the application process.
Your Employment Law Team
Last updated 28.02.2023