Nearly one in four Danish companies that employ foreign workers are at risk of engaging in social dumping, according to a new report. The National Research and Analysis Centre for Welfare (Vive) conducted the study, which assessed the employment practices of numerous businesses across Denmark.

The research indicated a potential issue with unfair labor practices. Social dumping can manifest in various ways, such as foreign employees receiving lower wages compared to their Danish counterparts for similar work.

Jan Hyld Pejtersen, a senior researcher at Vive, commented on the findings, stating that the identified proportion of companies at risk is “relatively large.” The study revealed a correlation between lower levels of education, lower salaries, and longer working hours within a company, and an increased risk of social dumping.

The report analyzed data from 59,355 companies employing foreign nationals. The findings indicated that 23.4 percent of these companies showed characteristics that placed them at risk of engaging in social dumping practices.