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Denmark – Recruiter goes bankrupt after fraud

06 March 2013

A Danish staffing company which had cheated workers out of their pay has now gone bankrupt, local media reports. The firm, Team Management, was ordered to pay nearly €230,000 (DKK 1.7 million) in December last year for wage dumping.

The Danish recruiter had supplied foreign agency workers to one of the country’s largest producers of tomatoes, Alfred Pedersen & Son.

It has been reported that the staffing company last year conned 177 workers and paid them less than they were entitled to. In total, the firm pocketed €200,000 (DKK 1.5 million) by tricking workers. The firm was ordered to pay back the sum, on top of an additional €27,000 (DKK 200,000) for breaching an agreement.

The local tax office, SKAT, reported the bankruptcy. Team Management did not comment on the story.

Last year, another Danish recruiter was forced to shut operations and fined over €1 million for undeclared work and tax evasion. The case also involved foreign workers. 

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