Report on the government's use and control of labour clauses in public contracts


Report no. 16/2019

To ensure that services paid for by the government are provided under fair wages and working conditions, government institutions are required to include labour clauses in contracts with public sector suppliers, in accordance with a circular on labour clauses in public contracts.

The purpose of the study is to assess whether the government is using and checking compliance with labour clauses in a satisfactory manner, when the government enters into public contracts. The report answers the following questions:

  • Are the ministries including labour clauses in their public contracts and are the ministries adequately checking that the contractors comply with the labour clauses?
  • Is the Agency for Public Finance and Management using labour clauses in the government procurement agreements (Statens Indkøbsaftaler) and is the agency ensuring adequate control of the contractors' compliance with the labour clauses in the public contracts?

It is Rigsrevisionen's assessment that the government is not using labour clauses and checking compliance with the labour clauses in public contracts in a satisfactory manner, which involves a risk of unfair competition practices and goods and services being provided to the public sector under unfavourable wages and working conditions.

Rigsrevisionen initiated the study in June 2019.

Read the introduction and conclusion (PDF)