ECJ’s decision on the Adequate Minimum Wages in the European Union Directive means Denmark does not have to implement a statutory minimum wage

At a glance

• In early 2023, Denmark commenced an action for annulment of the Adequate Minimum Wages in the European Union Directive (Directive) at the European Court of Justice (ECJ) claiming that the Directive exceeds the EU’s competence in this area.
• In Denmark, wage formation takes place between the labour market parties in collective bargaining agreements.
• On 11 November 2025, the ECJ decided that parts of the Directive should be annulled. The impact of this, among other things, is that Denmark will not be obliged to adopt a statutory minimum wage.