New working environment regulations aim to improve the working environment on Danish construction sites

TWO CENTRAL CHANGES

The main points of the legislative amendment are a so-called contractor stop and a significant increase in the level of fines for violations of the working environment legislation. The amendment is based on a political agreement from last year that aims to strengthen efforts against social dumping.
 

CONTRACTOR STOP

From January 1, 2026, the Danish Working Environment Authority can, under certain conditions, issue an order for a contractor stop at a construction site. This means that all work by the contractor and all subcontractors must cease. Until now, such orders have only affected the company that violated the rules, but going forward the entire value chain can be affected. A contractor stop means that both the contractor and subcontractors in the contract chain must stop work until the Danish Working Environment Authority gives the green light again.

The purpose of the contractor stop is to give the Danish Working Environment Authority a more effective enforcement tool in cases of repeated and serious violations of the working environment rules.
 

CONDITIONS FOR A CONTRACTOR STOP

An order for a contractor stop can be issued by the Danish Working Environment Authority when the following conditions are met:

• The Danish Working Environment Authority has intensified inspections of the construction site for about 4 weeks and has informed the contractor in writing.
• The contractor and at least one subcontractor have received several orders for violations of the working environment legislation that constitute a significant danger.
• There is a risk that the orders are not sufficient to prevent serious workplace accidents and health hazards.
• The Danish Working Environment Authority has given the contractor a written warning about the risk of an order for a contractor stop.
• Within a week of the warning, the Danish Working Environment Authority has issued additional orders to the contractor or a subcontractor.
   

THAT MEANS

It is therefore the most serious orders – those requiring immediate action – that can trigger a contractor stop.
 

INCREASED FINES

Already from July 1, 2025, a general increase in the level of fines for material violations of the Working Environment Act will take effect.

The base fine increases by 50%, so the fine level will in future be between DKK 36,900 and DKK 66,900, depending on the severity of the violation.

In addition, the level of fines increases for repeated violations of the law when the employer has previously been penalised for serious violations within a 4-year period.
 

IS YOUR WORKING ENVIRONMENT IN ORDER?

With the new rules that both increase the level of fines and make it possible to stop work on entire construction sites, it is crucial that clients, contractors, and HR departments have control over the working environment.

Even a short contractor stop can have significant economic and practical consequences for a construction project. This requires that all conditions in the contract chain are in order.

Do you have questions about the new changes or need advice? At NJORD Law Firm, our specialists in labour & employment law and our experts in construction law are ready to help.