Nearly one in four Danish companies employing foreign workers are at risk of engaging in social dumping, according to a new report by the National Research and Analysis Centre for Welfare (Vive). Social dumping can include practices such as paying foreign workers less than their Danish counterparts or subjecting them to poorer working conditions.

The report, which analyzed data from 59,355 Danish companies employing foreign workers, found that 23.4 percent are at risk of engaging in social dumping. The risk is deemed highest in the construction, agriculture, and hotel and restaurant sectors.

Small companies are also identified as being at greater risk of social dumping compared to larger companies, the report states.

Vive senior researcher Jan Hyld Pejtersen defended the report’s methodology, stating that the assessment considered various factors, including serious violations of occupational health and safety legislation. He maintains that companies with foreign workers who have committed such violations are considered at risk of social dumping.

The Danish Employers’ Confederation (DA) has strongly criticized the report’s methodology and conclusions, labeling them as “deeply misleading” and exaggerated. DA director Jacob Holbraad argues that the statistical method used, called Random Forest, can miscategorize companies based on isolated incidents.