Information for unemployment insurance funds about Factofly

Factofly is a freelance agency that has existed for 4 years, and is among the largest of its kind in Denmark. 

Since the start in 2020, Factofly has collaborated with Magistrenes A-kasse to offer our service to their members.

Below is a brief review of our model, as well as opinions from STAR (The Labor Market and Recruitment Board) and the chief legal officer from the Workers' Compensation Agency.

Should there be any further questions or anything else we can help with, you are very welcome to call or write directly to our lawyer Jannik Flor Borg.



Jannik Flor Borg

With best regards

Jannik Flor Borg

Direct phone: 81 90 70 90
Mail: jannik[at]factofly.com

With best regards

Jannik Flor Borg

Direct phone: 81 90 70 90
Mail: jannik[at]factofly.com

Review of the Factofly model

  1. The user (employee) finds the customer/work and informs the customer that they want to use Factofly.
  1. The user creates a task with us, with a description of the work to be carried out, number of hours and payment.
  1. Depending on the size of the task, we either send an order confirmation which they must confirm to us or a contract to be signed. In both cases, with Factofly as supplier in relation to the work to be done. The customer thus enters into an agreement with Factofly and not the user. It is thus also Factofly who is liable if there are objections to defects or anything else in connection with the work. 
  1. We draw up a contract for the user for the work with a description of the work to be done.
  1. If there are changes to the work during the process, the customer must inform us directly via the confirmation they have received and we will then inform the user. So the customer must not change the task directly to the user.
  1. Invoicing takes place (typically at the end of the work) by the user creating an invoice in our system. We then check that the invoice corresponds to the agreement made with the customer and forward this to the customer.
  1. The salary is then paid to the user - either when the customer pays the invoice or within 24 hours after the invoice is sent.

We collect the user's tax card from the tax office and report and pay a-tax, atp and other social costs for the user.

The employment contract is signed by the user with MitID.

The user is solely obliged to deliver his work to the best of his ability, while Factofly is obliged to deliver what has been agreed with the customer. 

In the event of the customer's inability to pay or bankruptcy, we will pay the salary to the user.

In case of illness, we cover the user.

The user therefore does not have a financial risk himself by carrying out the work and works in our name and under our supervision and not in his own name or risk.

We also monitor that the salary for the work in question is according to normal working conditions and reject tasks where the work to be carried out and the time to be spent on it do not match the total order size, so that the hourly wage will be below the market level for other similar work.

Statement from the Workers' Compensation Authority

Excerpt from the statement from the Work Injuries Agency, which has assessed Factofly's model. Your general counsel has made the following statement (emphasis added).

(…) Freelancers will without the described construction, according to practice, be considered as employed for (temporary) work for the company that must have completed a task, with the company as the employer liable to be insured, and its insurance company as responsible for payment of expenses in cases of occupational accidents or with the company's industry group as responsible for payment of expenses in cases of occupational diseases.

Alternatively, freelancers can be considered self-employed, provided that they actually run a registered business in their own name and do not just work for a single company.

The described construction lifts the freelancers out of the role of employee in the company, must have done temporary work or alternatively out of the role of self-employed person, and into a temporary employment relationship with Factofly. (…)

Statement from STAR regarding the use of freelance agencies to earn unemployment benefit asked by Factofly. *The marked text are our additions.

According to the rules, the right to unemployment benefit is conditional on a full-time insured member of a social security fund having an income of at least DKK 263,232 (2024) within the last 3 years.

You can see this in section 53, subsection 2, no. 1, in the Act on unemployment insurance etc., cf. Executive Order No. 503 of 11 May 2023 (the Act).

Class A income, of which labor market contributions must be paid and which is reported to the income register, can be included.

You can see this in section 53, subsection 3, No. 1, in the Act.

Factofly's comment:

All employment with us is as a-income, where labor market contributions are paid and reported to the income register. 

If the income is obtained through salaried work, only income that is paid in a usual employment relationship that is in accordance with applicable collective agreements or is otherwise carried out under normal wage and working conditions is included.

You can see this in section 53, subsection 6, in the law.

According to practice, the member's salary and working conditions are compared with a comparable collective agreement, if the employment relationship is not covered by a collective agreement. 

Factofly's comment:

When creating a task with us, we always check that the salary level at least follows the collective agreement in the area in question.