The confirmation provides clarification to Danish companies who pay salaries to foreign employees on short working visits in Denmark, reports dibusiness.dk.
Since last year, tightened rules have stipulated that foreign employees from non-EU countries must have salaries paid into a Danish bank account – even for short stays in Denmark.
Meanwhile, stricter legislation to prevent money laundering has made banks more cautious about setting up accounts for foreign employees.
Now, however, things are looking brighter.
The requirement that salaries be paid into a Danish bank account remains unchanged, but Finance Denmark – a trade organisation for Danish banks – has given companies with foreign employees a helping hand. The organisation has sent out a letter to financial institutions notifying them that they are obliged to create accounts for foreign nationals that are entitled to work in Denmark.
“We sent out the letter upon the request of the Confederation of Danish Industry and the Danish Agency for International Recruitment and Integration (SIRI), who brought to our attention the fact that a number of Danish companies find that their international employees from non-EU countries have difficulty setting up Danish bank accounts for payment of their salary before they have received their CPR number [personal identification number, ed.] or residency permit,” said Kenneth Joensen, Legal Executive Director at Finance Denmark.
The letter from Finance Denmark also informs banks that SIRI can provide help if they are unsure about a specific residency permit.
“In the letter to the banks, we have included information from SIRI that can help them understand the rules. We hope that the included material can make it easier and less worrisome for banks to open bank accounts in compliance with the money laundering rules for this group of foreign employees. Meanwhile, it is important that employees bring the information banks need so that they do not end up going to the bank in vain. In our experience, this can also be part of the problem in the specific instances,” Joensen said.
Since the summer of 2017, global consulting firm Accenture has struggled with the administrative difficulties resulting from the Danish parliament's decision to tighten the rules for use of foreign employees.
Philip Wiig, Country Managing Director for Denmark at management consultancy firm Accenture, welcomed the news.
“The rules requiring that foreign employees on short visits have their salary paid to a Danish account will still be an administrative burden. But it is a big relief that it has been made clear to banks that they are entitled to an account when they are permitted to work here,” Wiig said.
However, he still hopes that parliament will re-examine the rules and find a solution that is less difficult for both companies and the highly-specialised foreign nationals that Accenture brings to Denmark for short periods.
“We are increasingly availing ourselves of some of the world's most talented people, who come to Denmark for a short period to help us provide consulting services to Danish and international companies. It is therefore very important for us that getting them here is as straightforward as possible in terms of administration,” he said.
Linda Duncan Wendelboe, head of global talent with the Confederation of Danish Industry , agreed with that assessment.
“We really appreciate Finance Denmark's initiative and hope that the letter will help ease the burdens associated with setting up bank accounts for foreign employees. Ideally, however, we would like the requirement of a Danish bank account to be lifted completely,” Wendelboe said.
“Ultimately, we risk that these cumbersome rules will force companies to move departments and staff functions abroad, since the ability to bring employees in and out of a given country for projects and meetings is a priority, presently and in the future,” the global talent executive added.