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Work permits were required for offshore work on the Danish continental shelf

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Legal news
calendar 26 september 2024
globus Denmark

In a new Danish landmark decision, third-country nationals were not exempt from the requirements for a work permit. They were performing work on a foreign-registered crane ship and platforms during five shorter periods in connection with the ship’s construction work. Work permits were required as the work was performed on the Danish continental shelf.

Third-country nationals were carrying out work on a foreign-registered crane ship and platforms related to the ship’s construction work on the Tyra field, an installation located on the Danish continental shelf. The work took place over five periods from 2020 to 2022, each lasting between 2 and 7 weeks. After each period, the ship left the continental shelf area.

The company argued that, historically, work permits had only been required for foreign vessels under very specific circumstances. It further argued that no work permits should be required in this case, as the ship had only briefly, as part of its regular operations, carried out work in the Danish continental shelf area before sailing on to perform work elsewhere.

However, the court concluded that the general rule requiring third-country workers to have a work permit for work on the Danish continental shelf should not be narrowly interpreted. As a result, the workers were required to obtain permits.

IUNO’s opinion

The case highlights that even short-term work involving installations located on the Danish continental shelf requires third-country nationals to obtain work permits. However, exemptions do apply depending on the specific situation.

IUNO recommends that companies always verify work permit requirements when foreign workers are engaged in work within Danish territorial waters or on the continental shelf. Whether offshore work is of such a nature that it can be considered work on the Danish maritime territory, or the continental shelf is always a concrete assessment. Furthermore, companies should be mindful that, when applying for a work permit, employees' salaries and terms of employment must correspond to Danish standards.

[Eastern High Court judgment of June 28, 2024, in case BS-14840/2022-OLR]

Third-country nationals were carrying out work on a foreign-registered crane ship and platforms related to the ship’s construction work on the Tyra field, an installation located on the Danish continental shelf. The work took place over five periods from 2020 to 2022, each lasting between 2 and 7 weeks. After each period, the ship left the continental shelf area.

The company argued that, historically, work permits had only been required for foreign vessels under very specific circumstances. It further argued that no work permits should be required in this case, as the ship had only briefly, as part of its regular operations, carried out work in the Danish continental shelf area before sailing on to perform work elsewhere.

However, the court concluded that the general rule requiring third-country workers to have a work permit for work on the Danish continental shelf should not be narrowly interpreted. As a result, the workers were required to obtain permits.

IUNO’s opinion

The case highlights that even short-term work involving installations located on the Danish continental shelf requires third-country nationals to obtain work permits. However, exemptions do apply depending on the specific situation.

IUNO recommends that companies always verify work permit requirements when foreign workers are engaged in work within Danish territorial waters or on the continental shelf. Whether offshore work is of such a nature that it can be considered work on the Danish maritime territory, or the continental shelf is always a concrete assessment. Furthermore, companies should be mindful that, when applying for a work permit, employees' salaries and terms of employment must correspond to Danish standards.

[Eastern High Court judgment of June 28, 2024, in case BS-14840/2022-OLR]

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Anders

Etgen Reitz

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Søren

Hessellund Klausen

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Kirsten

Astrup

Managing associate (on leave)

Cecillie

Groth Henriksen

Senior associate

Johan

Gustav Dein

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Anders

Etgen Reitz

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Cecillie

Groth Henriksen

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Johan

Gustav Dein

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Julie

Meyer

Senior legal assistant

Kirsten

Astrup

Managing associate (on leave)

Maria

Kjærsgaard Juhl

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Hessellund Klausen

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