The law comes as a result of an emergency vote passed by a parliamentary majority on Friday.
The aim of the law is to reduce the spread of Coivd-19 and prevent businesses from having to suspend operations if an outbreak occurs, the Ministry of Employment said in a statement.
Employers can only use the law if it is reasonably justified with respect to prevent a possible virus outbreak.
In the statement, employment minister Peter Hummelgaard cited the extraordinary situation presented by the virus as justification for the law and said that Danish companies needed tools to prevent the spread of infection amongst both domestic workers and staff who enter Denmark from abroad.
“But I want to stress that employers are not being given carte blanche to force staff to take a coronavirus test,” Hummelgaard said.
“There must always be a reasonable justification, and it can only apply for testing for Covid-19 (and not other diseases),” he said.
“I admit this is far-reaching and that’s why we have set an expiry date on the proposed law,” he added.
The law is scheduled to expire on July 1st 2021.