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Payment of separate fees

Practice has varied at AU as regards the payment of fees, and it is necessary to clarify the rules for payment of fees.

1. Employment under a collective agreement/trade union agreement:

A person must be paid in accordance with the relevant collective agreement/trade union agreement, if his or her affiliation with AU is in the nature of an employment relationship, and if he or she performs work covered by a collective agreement. The salary is disbursed as ordinary pay, and tax (A-skat) is withheld.

In the assessment of whether a person’s affiliation with AU is in the nature of an employment relationship, the following indicators may show that the person is to be regarded as an employee:

  • The employer has power of direction and supervision
  • The work is performed in accordance with the employer’s directions
  • The work is performed for the employer’s expense and risk
  • The work is performed pursuant to an agreement
  • The employer withholds tax
  • The employer pays pension contributions
  • The work is determined in advance for an extended period of time
  • Fixed remuneration has been agreed
  • The employee generally works under the same terms as other employees of the employer with regard to, among other things, terms of notice and holiday
  • The university pays all expenses in connection with the work performed

2. Employment under an individual contract:

The person must be employed under an individual contract, if his or her affiliation with AU is in the nature of an employment relationship (see the above indicators) and the person performs work that is not covered by a collective agreement. The salary is disbursed as ordinary pay, and tax (A-skat) is withheld.

Employees who are employed with a fixed place of employment and residence abroad, and where the work is to be performed abroad only, are not covered by the state collective agreements/trade union agreements. These employees are employed under individual contracts.

3. Payment of separate fees:

If a concrete assessment shows that the assignments are not in the nature of an employment relationship (are not subject to the management’s power of direction, and the work is not covered by a collective agreement), the university may pay for the work performed based on the usual assessment of whether the payment is proportionate to what is paid for other similar services.

The following indicators may be used to determine whether a separate fee may be paid:

  • The affiliation with AU is short-term
  • The person performing the work organises, manages, allocates and supervises the work without any power of direction from the university other than what was agreed at the time of conclusion of the contract
  • The assignment is limited in time and clearly defined

If the assessment includes indicators that speak both for and against the affiliation with AU being in the nature of an employment relationship, it must be assessed which criteria carry the most weight.

A separate fee may only be paid to non-employees for the purchase of individual services. The fee is paid as a one-off payment. Holiday allowance, Labour Market Supplementary Pension contributions, pension and the like are included in the fee. As a rule, the fee will be taxed as income taxed at source (A-indkomst), but may in special cases be taxed as income not taxed at source (B-indkomst). 

Fees are not paid to people already employed (including part-time employees) at AU.

3.1 Approvals procedure for payment of a separate fee

  • Payment of a separate fee of up to DKK 25,000 must be approved locally by the authorising officer after delegation from the department head/deputy director.
  • Payment of a separate fee of between DKK 25,000-50,000 must be approved by the department head/deputy director.
  • Payment of a separate fee of more than DKK 50,000 must be approved by the dean/university director on the recommendation of the department head/deputy director.
  • The approval procedure applies to agreements on payment of a separate fee concluded from 1 April 2014.

3.2. Examples of payment of a separate fee:

3.2.1. Fees for guest lecturers:

Guest lectures or classes are individual sessions lasting a limited number of days.

If the duration is estimated to be more than a limited number of days, the person’s affiliation with AU is in the nature of an actual employment relationship. The terms of pay and employment are laid down in accordance with the relevant collective agreement and rules/agreements covering such work.

If the work consists of guest lectures or classes which cannot be said to constitute an employment relationship, the fee will be based on the hourly rate paid to teaching assistants.

For teaching assignments at a higher level, which also require a practical and experience-based approach, the fee will be based on the hourly rate paid to part-time lecturers.

For guest lectures or classes at a very high level, the fee will be agreed on a case-by-case basis taking into account the expectations and qualifications required for the service.

The fee will be disbursed as income taxed at source (A-indkomst) for Danish guest lecturers.

For foreign guest lecturers, the fee, including holiday pay, will be disbursed as income not taxed at source (B-indkomst). An example of this is the fee paid to visiting teachers at AU Summer University.

3.2.2 Fees for consultancy services etc.

For consultancy services etc. which are not in the nature of an employment relationship, the university may base its fee on the usual assessment of whether the payment is proportionate to what is paid for other similar services. The fee is disbursed as income taxed at source (A-indkomst).

In the following examples, the fee is disbursed (including holiday pay) as income not taxed at source (B-indkomst):

  • Lectures which do not constitute teaching
  • Translation/editing of text material
  • Artistic decoration
  • Entertainment for special occasions etc., such as actors and musicians
  • Inconvenience allowance for experimental subjects
  • Interpreters, illustrators and photographers

Ordering of and payment for services performed by a company with its own company registration number (CVR) are not covered by these guidelines.

In the event of any inconsistency between the Danish and English language versions, the Danish version prevails.

The guidelines apply from 1 April 2014.

Vers. 08-04-2014_eng

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