The Labour Clause in English
Download the Labour Clause for the municipality of Odense to see the requirements made to assure proper working conditions
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labour Clause for the municipality of Odense
Working Clause concerning protection of the workers’ rights in connection with work being carried out for Odense Kommune
1. The obligation
The Contractor puts himself under obligation to ensure that the employees, whom the Contractor and his subcontractors, if any, have employed in Denmark for the purpose of carrying out the task, receive a wage (including special benefits) and general terms of employment, that are no less beneficial wage and terms of employment than those applying for the same kind of work, in compliance with a collective agreement made between the, within the given field, most representative parties of the labour market in Denmark, and which are in force in all of Denmark’s territory cf. the circular from the Ministry of Employment concerning working clauses in public contracts.
Several collective agreements signed with the same employers’ association and under the same wage earners’ organization, with terms that can be considered uniform and collectively covering all of Denmark, are for the purpose of this Working Clause considered to be one collective agreement covering the totality of Denmark.
The Contractor is to make sure that the employees of said contactor, or subcontractors, if any, will inform their employees about current working conditions as well as the present Working Clause with the appertaining requirements.
1.1 Requirements for terms of employment of the employees and identification
All employees must receive an employment contract within 4 weeks after starting in the job, as well as be informed by the Contractor about current wage (including special benefits), working hours and working conditions. It is also the responsibility of the Contractor to make sure that only employees with a valid residence and work permit are used. All employees must be able to document their identity on demand by showing a picture ID.
1.2 Requirements for staying at the site, information about subcontractors and requirements for signage
Odense Kommune is to be informed in writing about which subcontractors the Contractor is using for the purpose of fulfilling the contract, by stating a name and a CVR.no./RUT. no.
The Contractor must further, during construction, operational and status meetings etc., inform Odense Kommune about which subcontractors are on the site in a previously defined period of time, and possibly what kind of work they are carrying out.
Concretely, Odense Kommune can demand that the Contractor clearly displays which companies are working at the site by displaying the name and CVR.no./RUT. no.
The Contractor is at all times subject to Odense Kommune’s instructions regarding staying on the site. By this requirement, Odense Kommune reserves the right to make instructions regarding staying on the site. Examples of this can be rules regarding unwanted staying on the site, a ban on overnight stay at the construction site etc.
1.3 Requirement for registration of foreign providers of sevices
The Contractor is required to make sure, that if the Contractor, or his subcontractors, has a duty of notification to the RUT register, said duty is upheld, and a receipt for the notification is sent to Odense Kommune by his own initiative immediately after the notification.
2. Documentation of observance of the obligation
In the present working clause a distinction is made between requirement for documentation and requirement for explanation.
All documentation and explanation is to be sent in Danish or English.
The burden of proving compliance with the obligation cf. paragraph 1 of present clause rests with the Contractor, and Odense Kommune can by request demand to see documentation of the Contractor’s and his subcontractors’ compliance with said obligation. Odense Kommune may ask for relevant documentation from the Contractor’s, or his subcontractors’, employees if relevant.
Relevant documentation must as a minimum include payslips, eIndkomst (electronic income) receipt, salary accounts, residence and working permits and employment contracts, as well as the frame of reference used by the Contractor when determining wage and general terms of employment for the employees. Additionally, Odense Kommune may in a given case ask the Contractor to submit other documents when relevant.
In case Odense Kommune suspects a violation, the Contractor is to submit a comprehensive explanation upon demand. The parties have a further duty to personally, and by their own initiative, inform each other in case of suspicion of a lack of compliance with the working clause.
The Contractor must as a minimum account for which conditions/using which methods those services and construction works, which are part of fulfilling the Contract, are manufactured under. Odense Kommune may in a given case ask the Contractor to elaborate upon other relevant matters
The documentation must be received by Odense Kommune no later than 5 working days after receiving the demand. The explanation must be received by Odense Kommune no later than 10 working days after receiving the demand.
2.4 Transmission of documentation
Odense Kommune may after a concrete assessment transmit information serving as documentation of compliance with the requirements of the Working Clause cf. paragraph 2.1 to SKAT, (tax authority) or Arbejdstilsynet (working environment authority), when transmission of information is deemed to be of major importance to the work of the authorities.
Odense Kommune may after a concrete assessment transmit information serving as documentation of compliance with the requirements of the Working Clause cf. paragraph 2.1 to the police, in case of suspicion of a criminal offence having taken place.
3. Sanction in case of lack of compliance with the obligation
A major breach of the Working Clause by the Contractor, or his subcontractors, will always entitle Odense Kommune to dissolve the contract wholly or partially. A major breach is understood to be for instance gross, or repeated, breaches of the working clause cf. paragraph 1 and 2.
Should the Contractor incur the sanctions mentioned below or other remedies for breach of contract, the Contractor is not exempt from his obligation to fulfill the contract.
3.1 Sanctions in case of the Contractor’s breach of paragraph 1 of the clause
Odense Kommune is entitled to withhold fees for the purpose of meeting legitimate demands from the employees of the Contractor or his subcontractors.
The Contractor will incur a fine per breach of paragraph 1 of the clause. The fine per working day or part thereof is up to 2 per mille of the contract sum, but no less than 1000 kr. a day, until the breach is terminated. The amount can be deducted from the Contractor’s fee.
When specifically determining the amount of the fine the following will be emphasized:
- The subject and size of the contract
- The nature and extent of the breach
- The Contractor’s own participation in terminating the breach
3.2 Sanctions in case of the Contractor’s breach of paragraph 2 of the clause
The Contractor will incur a fine per breach of paragraph 2 of the clause. The fine per working day or part thereof is up to 2 per mille of the contract sum, but no less than 2000 kr. a day, until the Contractor has met the demands of Odense Kommune. The amount can be deducted from the Contractor’s fee.
4. Control measures
Throughout the contract period the control unit against social dumping in Odense Kommune will be able to carry out different control measures, such as making unannounced visits to the site to ensure observance of the Working Clause.
5. Appointment scheduling system of the Kommune
At contract formation the Contractor must report his basic information, as well as that of his subcontractors if any, to the current appointment scheduling system of the Kommune, where relevant information about the contracts of the Kommune can be found.