In Denmark, the distinction between an independent contractor (freelancer) and an employee is primarily based on the degree of independence versus subordination. Independent contractors operate as self-employed professionals: they control their own working hours, methods, tools, and financial risk, and may subcontract work unless restricted by contract.

Labor Leasing

In Denmark, supplying workers to perform duties at a third-party workplace—commonly known as temporary agency work or labour leasing—is lawful but regulated. Temporary workers are typically hired through authorised staffing agencies, and Danish law requires equal treatment, meaning agency workers must receive the same pay and working conditions as comparable permanent employees at the host company.

Both the staffing agency and the user company may face joint liability if employment, tax, or social contribution obligations are not met.

Minimum Wage Requirements

Denmark does not have a statutory national minimum wage. Instead, wages are primarily set through collective bargaining agreements negotiated between trade unions and employer organisations. These agreements establish minimum pay levels, overtime rates, and allowances across sectors and occupations.

While employers outside collective agreements are free to set wages contractually, Danish labour market practice strongly encourages alignment with industry-standard collective wage levels to ensure fair pay and avoid disputes.