Employment Regulations
Danish employment law is relatively straightforward and flexible. There are minimal statutory requirements with regards to contracts, termination procedures as well as employee pensions and holidays. Employer compliance requirements are therefore much lower than in other European countries. As the following only aim to act as a guide in the broadest sense, it is still recommended that professional legal advice be sought when employing in Denmark.
Key Factors to Consider When Employing in Denmark:
Historically, one key characteristic of the Danish labour market is its high unionisation rate, with esteemed Danish law firm Norborrn Vinding estimating that up to 75-80% of the Danish labour force being a member of a trade union.
Employees are categorised into three groups:
- Executive officers
- Salaried employees (white-collar)
- Salaried workers (blue-collar).
Unlike some European countries, Denmark does not have a general labour statute conferring certain minimum rights on employees. Instead, legislation is fragmented in the sense that many individual statutes are applicable depending on the type of employment relationship involved. For example, the Danish Salaried Employees Act only applies to salaried employees (white-collar workers), and there are specific statutes which apply to seamen, vocational trainees, civil servants and employees in the agricultural sector. Hence, it is important to determine the legal status of the employee in question because it determines the legal framework under which the employee is governed.
Employee Entitlements
Statutory Working Hours
There are no statutory rules on working hours (with the exception of the protective rules contained in the Danish Working Environment Act and the Danish Act on Implementation of Parts of the Working Time Directive). These provisions prescribe that all employees are entitled to an uninterrupted rest period of at least 11 hours for every 24-hour period as well as one weekly rest period of 24 hours. The maximum weekly working hours must also not exceed 48 hours over a 4-month period. Stricter rules apply to young employees, while more lenient rules apply in certain sectors or circumstances. Working hours are normally regulated by CBAs, which is also the case with overtime. Thus, if no CBAs apply, no statutory rules on overtime apply and the employer must only comply with the restrictions laid down by the above mentioned Acts.
Working on Sundays
In Denmark there are no rules on working. Individuals can work when they choose, just as long as they have at least 1 day of rest in a 7 day period. If an individual carries out any work on a public holiday then they are entitled to receive a pay bonus of 100% of their average salary.
Time Off Work
Vacation is accrued in the calendar year and is to be taken between May 1 and April 30 of the following year. Employees are obligated to take at least 4 weeks of vacation each year, even if the employee has not accrued enough. In that case the employee will be deducted in gross salary with 4,8% per holiday.
This also means that the employee only in agreement with the employer can transfer 1 week to the following holiday year.
Medical Leave
The employer is obligated to pay sick-pay to the employee if the following is met: the employee has been employed for at least 8 weeks prior, and has worked for at least 74 hours.
The employer should report it to the authorities within 4 weeks after first sick day. (From week 5 the employer will get a refund from the authorities).
However, it may be stipulated by written agreement in the individual employment relation-ship that the salaried employee may be dismissed with one month’s notice for expiry of the employment relationship at the end of a month, if the employee has received his salary during periods of illness for a total period of 120 days during any period of twelve consecutive months.
After 14 days of illness, the employer can request further information as to the duration of the employee’s illness. Right to request flexible working- In Denmark flexible working was first brought into the workplace in 1998. Flexible working allows employees that, for some reason such as illness, feel that they are no longer able to work as many hours and yet wish to continue in there role, with the same pay. They may also choose to get a new job role what comes with a shorter amount of hours. The government of Denmark only grants flexible working to those individuals that are not already receiving any form of state benefits.
Maternity Leave in Denmark
A woman has the right to four weeks of pregnancy leave before the expected date of birth and 14 weeks of maternity leave after the birth of her child, of which the first two weeks are obligatory.
A father has the right to take off up to two weeks of paternity leave, which must be taken within the first 14 weeks after the birth or the date on which the child moves into the parents’ home.
After the first 14 weeks both the mother and the father have the right to up to a total of 32 weeks of parental leave. It is a condition, however, that both parents are working in Denmark.
The parental leave scheme is very flexible. It may be prolonged to 46 weeks, and it may be divided up so that part of the leave can be postponed.
Employment Termination
Resignation / End of Service Payment
Compensation would generally depend on both the type of employee and the specific clause contained in the CBA or employment contract.
- Blue-collar workers: Only if provided for in the employment contract or the collective agreement
- Salaried (white-collar) workers: 1-6 months depending on, inter alia, length of continuous employment according to the Salaried Employees Act – the usual level being between 1-3 months
- Executive officers: Only if provided for in the employment contract/service agreement
Termination of Employment
Termination of the employment contract on the part of the employer may take place with at least:
- One month’s notice, for expiry at the end of the month, during the first six months’ employment,
- Three months’ notice, for expiry at the end of a month, after six months’ employment.
Termination on the part of the salaried employee shall be subject to one month’s notice to the end of a month.
It is relatively easy to dismiss employees in Denmark compared to other countries in the EU due to a general lack of statutory termination rules in the legislation, as well as the generous and easy access to unemployment benefits. However, special rules may apply to the dismissal of:
- Employees on maternity/paternity or parental leave
- Employees from certain minorities or affiliated with trade unions or political parties
- Employees elected or appointed as representatives such as shop stewards or employee board members
Notice periods would generally depend on both the type of employee and the specific notice period contained in the CBA or employment contract.
- Blue-collar workers: Depends on the employment contract or the collective agreement
- Salaried (white-collar) workers: 1-6 months depending on length of continuous employment according to the Salaried Employees Act
- Executive officers: Depends on the employment contract/service agreement
Notice periods contained in the collective bargaining agreements vary a great deal, but are typically shorter than those of the Salaried Employees Act.
In some cases, the termination must be reasonably justified either by the conduct of the employee or the circumstances of the employer. Unjustified terminations may leave the employer liable to paying the employee compensation. Before effecting a notice of termination, it should be clarified whether firstly, the termination will be lawful and the possible consequences of a termination.
Probation Period
There does not appear to be any specific rules in the Danish law on probationary period. It is likely that a probation period would only apply if written into the employment contract.
Pension Requirements
Pension is an individual written agreement between the employer and the employee. Normally in Denmark the employer pay 10% and the employee pay 5%.
