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18 November 2022

Buyer found to be liable for Seller's Non-Compliance with Collective Bargaining Agreement

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One of the ground pillars of the Danish labour market model (in Danish: “Den danske model”) is the possibility for trade unions and employers’ organizations to enter into collective bargaining agreements which regulate the salary and working conditions for employees.

When a collective bargaining agreement applies, the employer must comply with the terms set out in the collective bargaining agreement. The employer’s failure to comply with the collective bargaining agreement may have financial consequences, such as post-payment claims and penalties.

 The financial consequences due to non-compliance of a collective bargaining agreement and the liability hereof in connection with taking on employees pursuant to the Danish Act on Employees' Rights in the event of Transfers of Undertakings (in Danish: “virksomhedsoverdragelsesloven”) (the “Act “), has been considered in a recent decision from the Danish Labour Court.

Pernille Nørkær

Partner

+45 30 37 96 40

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Sarah Bernadette Stage High

Associate

+45 30 37 96 74

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Salam Al-Khafaji

Associate

+45 30 37 96 04

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