FAQ regarding Danish Employment Law
It is no ”news” but on the other hand useful. Below you will find answers to the most frequently asked questions on Danish Employment Law with regard to salaried employees.
1. What are the legal maximum working hours in Denmark?
There is no statutory law regarding maximum working hours. Often the maximum working hours are regulated in collective agreements. According to most collective agreements the normal weekly working hours are 37 hours – most Danish companies apply the 37 hours week even if they are not covered by a collective agreement. The maximum working hours are only limited by the regulations on resting time.
2. What is the legal notice period in Denmark?
Employees can terminate an employment agreement with one month’s notice. The notice period given by the Employer depends on the employee’s seniority.
|Employee’s seniority||Notice period|
|0-6 months||1 months|
|6 months til 3 years||3 months|
|3 years to 6 years||4 months|
|6 years to 9 years||5 months|
|More than 9 years||6 months|
3. How many weeks of vacation does an employee have in Denmark?
According to the Danish Holiday Act an employee is entitled to 25 (working-)days of vacation. An employee earns 2,08 days of paid vacation per month of employment. The earning year corresponds to the calendar year. The holiday year starts on May1 and ends on April 30th. Holiday accrued in e.g. year 2017 can be taken in the holiday year starting May 1, 2018. This means that an employee is not entitled to paid vacation in the first year of employment. However, a new Danish Holiday Act is about to be adopted that will change the accrual system. The new act is expected to become in force as of 2020.
4. What is the minimum salary in Denmark?
Der is no statutory law regulating the minimum salary. Companies covered by collective agreements must follow the minimum salary regulated in the collective agreement. All other companies are free to determine the salary. Information on average salaries can be found on Denmark’s Statistics’ homepage www.dst.dk or at the trade unions.
5. Are all companies covered by a collective agreement?
Only those companies that have entered a collective agreement (either through a branch organization or through a company-based collective agreement) are covered by a collective agreement. There is no statute in Denmark that obliges companies to be covered by a collective agreement.
6. Does an employer have to pay seniority based compensation to a dismissed employee?
If the employer terminates an employment agreement, an employee is only entitled to a seniority based severance payment if the employee has been continuously employed in the company for at least 12 years.
7. Is it possible to agree on temporary employment?
Yes, it is possible. However, prolongation of a temporary employment requires an objective reason.
8. Is it possible to agree on a probation period and if yes, how long can this probation period be?
Yes, you may agree on a probation period. The probation period may not succeed a period of three months. It is possible to terminate the agreement during the probation period with a mutual notice period of 14 days. The date of resignation has to be within the probation period.
9. How long does an employer have to pay salary during sickness?
An employee is entitled to salary during sickness, as long as the employee is sick. The employer has to pay the first 30 days and may after this period seek reimbursement at the municipality where the employee is registered. The reimbursement corresponds to the maximum daily allowance applicable from time to time.
10. What is the amount of social insurance contributions an employer has to make beyond the gross salary?
Most of the social insurance contributions are financed in Denmark through income taxes. An employer, therefore, only has to pay a few minor social insurance contributions beyond the gross salary. These contributions are: ATP, AES, AUB, FIB, barsel.dk and the fund for posted workers. For an office worker the overall monthly contributions will amount to approximately 500 DKK.