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Denmark – Recruitment agency bankruptcies costs employers

19 August 2013

Recruitment agencies that have declared bankruptcies have cost the Danish Salary Guarantee (LG) fund DKK 13 million (€1.7 million). Monies have been paid out to cover temporary worker non-payment and holiday pay following recruitment agencies in the green sector declaring bankruptcy.

The LG fund is paid into by all employers across Denmark. Denmark’s largest trade union, 3F, revealed in a recent survey that 12 out of 31 employment agencies in the green sector have filed for bankruptcy. Four agencies have been officially declared bankrupt and two have closed.

The remaining 13 recruitment agencies are currently active; although nine are reportedly paying employees DKK 60 or less, below the standard minimum wage for the sector, and are being investigated by 3F.

Arne Grevsen, president of the Green Group segment of 3F, commented: “It is deeply appalling that employees, decent employers, and society are left with the bill for this mess.” 

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