Terminating a Polish Agency Contract in Denmark 2026

When a Danish construction or manufacturing company decides to end its relationship with a Polish staffing agency, the process of terminating a Polish agency contract in Denmark is rarely as simple as sending a single email. The arrangement typically involves at least two legal frameworks, Danish employment and contract law on one side, and Polish labour regulations under the Kodeks Pracy on the other, and getting the procedure wrong can expose a Danish employer to significant financial liability. This guide walks through the process step by step, as it stands in 2026.

Why the Legal Complexity Matters

Polish staffing agencies operating in Denmark must comply with Danish rules on posted workers, including the requirements set out under the legislation implementing the EU Posted Workers Directive. At the same time, the employment contracts the agency holds with its workers are governed by Polish law, specifically the Kodeks Pracy, which sets its own mandatory notice periods and severance obligations. A Danish employer who simply stops ordering workers without following the commercial contract's termination clause may find itself liable not only to the agency but indirectly responsible for costs the agency passes on.

Oversight of working conditions for posted workers in Denmark falls under Arbejdstilsynet, the Danish Working Environment Authority, while the agency's own obligations toward its workers back in Poland are monitored by the Państwowa Inspekcja Pracy (PIP). Both bodies can and do conduct cross-border inspections, so documentation on both sides of the arrangement needs to be in order. If your team manages worker rotations across borders, moving from ad-hoc messaging to a structured system, as described in From Messenger to Digital Rotation Management PL-DK 2026, can make the termination process significantly cleaner.

Step 1: Check Eligibility and Contract Terms

Before anything else, locate the original commercial agreement between your company and the Polish agency. Most professional staffing contracts specify a minimum contract duration, a notice period for termination, and conditions under which either party can exit early without penalty. Notice periods in such commercial agreements commonly range from one to three months, though this varies widely. If the contract is silent on notice, Danish contract law principles of reasonableness apply, and courts have generally interpreted reasonable notice for ongoing service relationships as at least one month.

Check whether the contract contains a force majeure clause or a clause tied to project completion. If your construction project ends earlier than planned, some agencies accept project-end as a valid trigger for termination without the full notice period. Get this confirmed in writing before assuming it applies.

Step 2: Gather the Required Documents

A clean termination requires a paper trail. You will need the original signed commercial contract with the agency, all addenda or amendments, records of the workers posted to your site (names, posting start dates, A1 certificates issued by ZUS), and any correspondence that establishes the scope and duration of the arrangement. A1 certificates are particularly important: they confirm that posted workers remain insured in Poland and are not subject to Danish social security contributions. Retaining copies protects you if ZUS or Danish authorities later question the posting period.

You should also gather records of any workplace incidents. If a worker was injured on your site, the documentation requirements are separate and substantial, see the Workplace Accident in Denmark: Polish Worker's Guide 2026 for a full breakdown of those obligations.

Step 3: Prepare and Send the Formal Termination Notice

Draft the termination notice in writing, email with read receipt is acceptable in most jurisdictions, but a signed letter sent by registered post provides stronger legal evidence. The notice should state clearly the date on which the notice period begins, the date on which the contract will end, and a reference to the specific clause in the agreement that governs termination. If you are terminating for cause, for example, because the agency repeatedly failed to supply workers with valid A1 certificates or correct qualifications, state the cause explicitly and attach supporting evidence.

Send the notice to the agency's registered address in Poland as well as any Danish operational address. Sending only to a local project coordinator may not constitute valid legal notice under the contract.

Step 4: Manage the Notice Period Actively

The notice period is not simply a waiting game. During this time, you remain obligated to provide safe working conditions for any workers still on site, and the agency remains obligated to supply the agreed number of workers unless you mutually agree otherwise. Use this period to conduct a handover: document the state of any ongoing work, confirm that all workers have been paid by the agency for hours already worked, and ensure that accommodation arrangements, if your company provided housing, are wound down in an orderly way.

Consider also whether any of the Polish workers might be eligible for a Danish tax refund on earnings from the posting period. The rules around this are detailed in Danish Tax Refund for Polish Construction Workers 2026, and ensuring workers are aware of their rights in this area reduces the risk of disputes surfacing after the contract ends.

Step 5: Confirm Termination in Writing and Archive Records

Once the notice period expires, send a brief written confirmation to the agency stating that the contract has ended as of the agreed date and that no further workers will be requested. Ask the agency to confirm receipt. This single document closes the loop and prevents any ambiguity about whether the relationship has actually ended or whether a new informal arrangement has begun.

Archive all termination-related documents for at least five years. Danish tax authorities at Skattestyrelsen and Arbejdstilsynet can request records relating to posted workers for several years after the posting ends, and gaps in documentation are treated unfavourably during inspections.

Common Mistakes to Avoid

The most frequent error Danish employers make is stopping orders informally, simply not calling the agency for new workers, without ever sending a formal termination notice. Under most commercial contracts this does not constitute termination, and the agency may continue to claim fees or argue that the contract remains active. Another common mistake is failing to verify that the agency has settled all wage obligations to its workers before the contract ends. While the primary obligation to pay workers sits with the agency, Danish rules on posted workers mean that under certain circumstances a user company can be held jointly liable for unpaid wages.

Finally, do not overlook the workers themselves. Even though your contract is with the agency, the workers on your site have rights under both Danish and Polish law, and treating the termination purely as a commercial transaction without considering the human side can create reputational and legal risks that far outweigh the administrative effort of doing it properly.

Actionable Advice for Danish Employers

Start by reading your existing agency contract today, specifically the termination clause, the notice period, and any penalty provisions. If the contract predates 2021 and has not been updated to reflect the revised EU Posted Workers Directive requirements, ask your legal adviser to review it before you trigger termination. Collect all A1 certificates and posting registration documents now, not when an inspection arrives. And when you do send the termination notice, send it in both Danish and Polish to eliminate any language-based disputes about what was communicated. A well-documented, properly timed termination protects your business, respects the workers involved, and keeps you on the right side of both Arbejdstilsynet and PIP.