5 ways Denmark is preparing for the future of work

 
Denmark 2018

Mr Lars Lokke RASMUSSEN, Danish Prime Minister. Copyright: European Union Event: 60th anniversary of the Rome treaties

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum. 
Author: Troels Lund Poulsen, Minister for Employment, Denmark

How do you prepare a traditional welfare state, with its institutionalized and tax-funded benefits, for the future of work? How do you maintain a healthy labour market, a level playing field, collective agreements and strong social dialogue, without killing the potential of new technology and innovation? Denmark has taken important steps to accommodate its changing labour landscape.

Rise of the platform worker

One of the game-changing consequences of the internet has been the birth of e-commerce. Consumers and companies have embraced buying and selling products online for mutual benefit, and traditional business models have been disrupted by new ones. For companies in retail with the ability to adapt, e-commerce has been a vehicle for growth. For law-makers, e-commerce has challenged legislation concerning taxation and consumer rights.
The transition from traditional retail has, to a large extent, been successful. Today, a new challenge has arrived. Digital platforms are facilitating physical labour, creating a fast, flexible connection between supply and demand for work. Once again, legislators are faced with opportunities and challenges.

A safety net for everyone

With a growing number of platform workers, a key issue is ensuring their labour market rights – both statutory rights concerning work safety, health and holiday allowances, and rights settled in collective agreements, such as wages and working conditions.
In Denmark, where wages are settled by social partners, the government plays a crucial role by ensuring a level playing field for competition between traditional workers and platform workers. Yet legislators depend on social partners to engage in dialogue and enter into agreements.
Another critical issue is ensuring that current legislation does not stand in the way of potential benefits. Platform work provides flexible alternatives to traditional employment for people who have limited abilities, or who want to plan their own working hours, or who need a stepping stone to more permanent employment.
In these cases, platform work can provide a gateway from unemployment and a fast track to the labour market. Yet legislation concerning social benefits and unemployment benefits must acknowledge platform work as work, and income from platform work as having the same value as income from traditional employment.

The Danish way

To handle the impact of technological change on the labour market, the Danish government established the Disruption Council in 2017. The council is headed by the Prime Minister, and comprises eight ministers and 30 members, including CEOs, social partners, researchers and others.
Discussion has centred around how public policy can embrace new forms of work while maintaining a well-functioning labour market. It has resulted in the following five steps to support innovation and the competitiveness of new technologies.
1. Adjusting the unemployment benefits system
Regulation concerning unemployment benefits for self-employed and atypical employees, such as platform workers, will be harmonized with rules for ordinary employees. This gives everyone, regardless of their form of employment, a better safety net and greater security if they lose their income. All types of employment count, meaning that a person who is both self-employed and an employee will be able to use both types of employment to earn unemployment benefits.
The new system will to a larger extent be based on objective, register-based and digital solutions that provide greater transparency for everyone. In addition, there will be more similarities between the unemployment benefits system and the tax system. Under the new agreement, all taxable income can be used to earn unemployment benefits.
2. Platform work is recognized as work with regard to social benefits
Not only will income from platform work be considered as equal to income from traditional work in relation to unemployment benefits, platform work will be made equal to traditional work when it comes to maintaining rights to social benefits.
Until now, a substantial barrier for unemployed people to engage in the platform economy has been uncertainty about the current legislation – specifically on how income from platforms will affect their right to unemployment benefits, offsetting and vesting rules. To strengthen transparency, the Ministry of Employment has made clear to unemployment insurance funds and municipal job centres that platform work is to be acknowledged as work. This removes the red tape blocking unemployed recipients of social benefits from using platform work as a stepping stone to enter the labour market.
3. The first collective agreement with a platform company
In April 2018, the platform Hilfr entered a historic, collective agreement with the union 3F. This was the first agreement between a union and a platform company in Denmark. It ensures the platform’s users have employee rights, including a pension and a holiday allowance. The contract acts as a bridge between the strong tradition of collective agreements in Denmark and the new digital platforms, providing platform workers with the potential to unionize.
4. Boosting the future potential of the sharing and platform economies
A short while ago, the government entered into a political agreement to strengthen the growth potential of the platform economy. It requires checking whether regulation concerning platform companies needs clarifying or adjusting, and launching a dedicated web platform to provide the platform industry with one point for answers concerning public regulation. The agreement also includes the establishment of a council with social partners and industry to advise the Minister for Business on developments regarding the sharing and platform economies.
Furthermore, it eases and clarifies tax terms for renting out cottages, full-year homes, cars and boats through a platform or rental agency. The tax authorities have also entered into cooperation with Airbnb, to ensure a clear framework for short-term rentals and automatic reporting of rental income to the Danish tax authorities.
5. Upskilling the workforce to meet changing conditions
This is crucial in preparing for the future of work in a broader context. The Danish government has entered into a tripartite agreement with social partners on vocational training and education. It is investing in future competencies with more flexible solutions, in easier access to education and training, and in strong lifelong learning possibilities. The agreement contains several initiatives targeting companies, workers’ incentives and opportunities to begin training and upskilling. One of these is a “transition fund” which offers free training to both skilled and low-skilled people.
Similar to how we have grown accustomed to e-commerce over the years, adapting to new conditions does not happen overnight. However, these initiatives are important steps towards creating an innovative ecosystem that drives healthy competition within the framework of the Danish Flexicurity model, ensuring a sound labour market with a proper social safety net.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© UNICEF/Josue Mulala Emergency aid is prepared for delivery to Kasaï province in response to the recently declared Ebola virus disease outbreak in DR Congo.

Ebola risk is high inside DR Congo but it’s no pandemic emergency: WHO

This article is published in association with United Nations. The deadly Ebola outbreak in Democratic Republic of the Congo (DRC) and Uganda does not represent a global pandemic emergency, although the risk is high at a regional and national level, the UN health agency chief said on Wednesday. In an update on the fast-developing situation in […]
This article is published in association with United Nations.

How the Hormuz crisis keeps disrupting kitchens, ports and paychecks

This article is published in association with United Nations. The fragile ceasefire between the United States and Iran may have eased fears of a wider regional war, but persistent instability around the Strait of Hormuz continues to disrupt global trade, drive up energy costs and fuel a growing jobs and cost-of-living crisis. The fallout is being […]
© UNFPA Ukraine In March 2026, a maternity hospital in Odesa, Ukraine was attacked by Russian forces.

World News in Brief: More attacks in Ukraine, violence against children in Haiti, refugee IDs in Africa

This article is published in association with United Nations. Civilians, including humanitarians, continue to face great danger across war-torn Ukraine amid ongoing hostilities, according to the UN humanitarian relief coordination office there, OCHA. Over the past three days, frontline attacks killed at least 11 civilians and injured nearly 200 others, including five children, as reported by […]
UN Photo/Milton Grant Sculpture depicting St. George slaying the dragon. The dragon is created from fragments of Soviet SS-20 andUnited States Pershing nuclear missiles.

Nuclear terror threat ‘has never been so high’

This article is published in association with United Nations. The widespread availability of new technology, such as militarised drones and artificial intelligence, means that the current threat of nuclear terrorism is higher than it has ever been. The humanitarian, environmental, and economic consequences of a radiological or nuclear terrorist attack would be global, undermining international peace […]
© UNICEF/Nyan Zay Htet Recent disruptions to energy supplies and global supply chains have reverberated across development and humanitarian sectors, including relief efforts in Myanmar, where millions remain in need of assistance.

Global energy and trade disruption pushing millions towards poverty

This article is published in association with United Nations. Disruptions to global energy supplies and trade corridors are driving up the cost of food, transport and essential goods worldwide, slowing economic growth and increasing pressure on vulnerable households and debt-strapped developing countries. The warnings came during a special meeting of the UN Economic and Social Council […]
UN Photo/Eskinder Debebe UN Relief Chief Tom Fletcher (centre) along with Ambassador Mike Waltz (right) and Jeremy P. Lewin of the United States hold a joint press briefing on funding to the humanitarian system.

UN welcomes $1.8 billion US boost for humanitarian operations

This article is published in association with United Nations. An additional $1.8 billion in US humanitarian funding will allow the United Nations and its partners to expand emergency relief operations reaching millions of people worldwide, as rising global needs and funding shortfalls force aid agencies to scale back assistance. The funding announcement, made on Wednesday by […]
© WHO/Hanan Balkhy Displaced families are living in overcrowded tents and makeshift shelters, surrounded by waste and debris, with limited access to safe water and sanitation services.

World News in Brief: Mounting waste in Gaza, drone attacks in Sudan, aid truck struck in Ukraine

This article is published in association with United Nations. Mounting waste and limited access to sanitation sites are deepening health risks for families across Gaza, as humanitarian workers warn that overcrowded dumping areas and worsening living conditions threaten vulnerable communities. Ramiz Alakbarov, UN’s top aid official in Occupied Palestinian Territory visited a dumping site in Gaza […]
This article was exclusively written for The European Sting by Mr. Franco Miguel Nodado, a 4th-year medical student from the Philippines. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Autism Spectrum Disorders in Global Health: Bridging the Gap in  Awareness, Early Diagnosis, and Inclusive Care 

This article was exclusively written for The European Sting by Ms. Georgia Maria Vardalachaki, a medical student from the Medical University of Crete, Greece. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s […]
© WHO/Hedinn Halldorsson WHO Director-General Tedros and a health expert during operations involving the MV Hondius off Tenerife amid the hantavirus response.

Hantavirus-hit ship evacuation completed as quarantines begin

This article is published in association with United Nations. The passengers and crew have disembarked from the hantavirus-hit cruise ship MV Hondius in Tenerife and many have returned to their home countries, as the UN World Health Organization (WHO) said the operation demonstrated a “triumph of solidarity”. The repatriation effort, coordinated by Spanish authorities with support […]
© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

Strait of Hormuz de-escalation is urgent, says UN chief

This article is published in association with United Nations. As the Strait of Hormuz crisis deepens and tensions between Iran and the United States remain unresolved, oil prices rose again early Monday, prompting the UN Secretary-General to call for a peaceful resolution and warn of the widening fallout across Africa and beyond. “My strong appeal is […]
This article is published in association with United Nations.

Ukraine: Over 3,000 attacks on healthcare since full-scale Russian invasion

This article is published in association with United Nations. The World Health Organization (WHO) has verified more than 3,000 attacks on healthcare in Ukraine since Russia launched its full-scale invasion in February 2022, the UN agency reported on Friday. “During 1,534 days of war, Ukraine’s healthcare system has experienced repeated attacks,” it said.  Every aspect of the system has been […]
WHO Passengers from MV Hondius assisted by Spanish and WHO health teams after disembarking.

Passengers leave hantavirus-hit cruise ship in Tenerife as WHO says outbreak ‘not another COVID’

This article is published in association with United Nations. Passengers and crew from the cruise ship MV Hondius began disembarking in Tenerife on Sunday under a tightly coordinated international health operation led by Spanish authorities and the World Health Organization (WHO), as officials sought to reassure the public that the outbreak “is not another COVID.” The […]
Nuclear energy in the Middle East: A realistic choice or a risk?

Nuclear energy in the Middle East: A realistic choice or a risk?

This article is published in association with United Nations. As global electricity demand grows, so does the popularity of nuclear energy. In the Middle East, several countries are evaluating or advancing nuclear power projects, balancing weighty issues such as regional security, climatic conditions and international cooperation. “Nuclear energy is at the intersection of energy demands, technological […]
© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

Bahrain and US float Security Council resolution on the Strait of Hormuz

This article is published in association with United Nations. Bahrain and the United States have circulated a draft Security Council resolution calling for Iran to cease attacks in the Strait of Hormuz, their ambassadors outlined to journalists at UN Headquarters in New York on Thursday. The text is supported by Kuwait, Qatar, Saudi Arabia and the […]
© CDC An enhanced microscopic image shows the Hantavirus.

Hantavirus outbreak: Another passenger contracts disease

This article is published in association with United Nations. It’s been confirmed that another passenger from the cruise liner linked to the outbreak of hantavirus has contracted the disease, which has claimed the lives of three people on board and sparked an international alert coordinated by the UN World Health Organization (WHO). The individual, who is […]
This article is published in association with United Nations.

UN warns of worsening human rights crisis in Mali after deadly attacks

This article is published in association with United Nations. The human rights situation in Mali is rapidly deteriorating following coordinated attacks by armed groups across the country, with civilians killed, displaced and cut off from food and aid, UN rights office OHCHR said on Tuesday. The violence, which erupted on 25 and 26 April, saw large-scale […]
© UNICEF A damaged ambulance in Tebnine in southern Lebanon.

In Lebanon, the same fears and dangers persist despite ceasefire: UNHCR

This article is published in association with United Nations. Death and destruction have continued unabated in Lebanon while communities are still unable to return to their homes despite a ceasefire that began on 17 April, humanitarians said on Tuesday. “Civilians in the south of Lebanon and parts of the Bekaa [Valley] are really living with the […]
© Unsplash/Planet Volumes A computer-generated image shows the Strait of Hormuz.

Uncertainty continues over safety in the Strait of Hormuz

This article is published in association with United Nations. Amid claims and counter-claims of strikes and confrontations in the crucial Strait of Hormuz between Iran and the United States, UN maritime officials continue to urge vessels to exercise “maximum caution”. “We are aware of the reports but do not have further details. We continue to urge […]
© ADB/Ariel Javellana Women farmers in India sell wheat grain and buy fertilizer with the proceeds.

Middle East crisis puts aid, food, fuel further out of reach for millions already struggling – UN agencies

This article is published in association with United Nations. As the Middle East crisis continues the humanitarian fallout is worsening, with aid route disruptions and food and fuel price hikes wrecking the lives and the rights of the most vulnerable people worldwide, UN agencies warned on Friday. Heightened insecurity and instability around key Gulf routes, including […]

Trackbacks

  1. […] How do you prepare a traditional welfare state, with its institutionalized and tax-funded benefits, for the future of work? How do you maintain a healthy … Source link […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com