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Employment contract policy and procedures in Denmark
Contract terms in Denmark
Fixed-term contracts in Denmark
Contract extensions in Denmark
Working hours in Denmark
Remote work in Denmark
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Employment contracts in Denmark
In most countries, it’s standard practice for employers and employees to formalise their employment relationship by signing an employment contract or agreement. This is an important document, as it lays out the terms and conditions of employment as well as the obligations of both parties. Because of this, every country has specific rules and regulations relating to employment contracts, which employers need to be aware of.
In Denmark, employment contracts are obligatory for all employees who work an average of three hours a week or more over a reference period of four consecutive weeks. In this case, employers have one month from the employee’s start date to issue them with a written statement of their terms of employment. It’s standard practice to provide an employment contract for all employees, even if they don’t meet the above requirements.
As in all countries, there are certain rules that employers must follow when it comes to employment contracts in Denmark. In this section, we’ll take you through the basic information you should know about employment contracts in Denmark, including the rules about fixed-term contracts and extensions, the legal maximum working hours, and the rights and responsibilities of remote workers.
Employment contract policy and procedures in Denmark
In Denmark, employers have to provide most employees with a written statement of their terms of employment (an employment contract). As of July 2023, employers have to provide this statement to all employees who work (or will work) an average of three hours per week or more over a reference period of four weeks.
Employment contracts in Denmark can be:
- Permanent or for a fixed-term
- For full-time or part-time hours
It’s illegal to discriminate against employees because they are employed on a fixed-term or part-time contract.
Probationary periods in Denmark
Employers in Denmark can choose to include a probationary period in their contracts to allow both parties to assess whether the job is a good fit before committing fully. A probationary period in Denmark can’t be longer than three months for salaried positions. Both employers and employees only need to give 14 days’ notice to end a contract during the probationary period.
Employment policies in Denmark
Many companies in Denmark choose to document internal guidelines or conditions of employment in an employee manual or handbook, which should be made available to employees. This might include things like health and safety policies or IT policies. Companies in Denmark are legally required to have a non-smoking policy and a policy on e-cigarettes.
Contract terms in Denmark
The terms of an employment contract in Denmark can’t provide for less favourable conditions than the minimum legal entitlements set by employment legislation or any applicable collective bargaining agreement. However, employees can choose to make their contract terms more favourable as a means of attracting and retaining talent.
Standard contract terms in Denmark
All employment contracts in Denmark must include at least the following information:
- The name and address of the employer and employee
- The location of the workplace and the employer’s main office address
- The job description or the job title, rank, and job category
- The contract start date
- The contract end date (for fixed-term contracts)
- The applicable notice period for the employer and employee
- The employee’s salary and details about other forms of compensation
- The employee’s rights regarding holidays
- The standard weekly and daily working hours
- Information about the collective bargaining agreement that applies
- Other important information that impacts the employment relationship
Collective bargaining agreements in Denmark
Around 80% of employees in Denmark are covered by collective bargaining agreements, which are negotiated between trade unions and employers or employer associations. These agreements provide rules about working hours, pensions, overtime, and other aspects of employment law. Trade unions in Denmark may take industrial action to obtain a collective agreement, but this is relatively rare compared to other countries.
The Danish Salaried Employees Act
Many employees in Denmark are covered by the Danish Salaried Employees Act (funktionærloven). This isn’t a general employment law, because it only applies to certain occupational groups, including those working in commerce and offices, qualified technical professionals, and employees in managerial positions. Like collective bargaining agreements, the funktionærloven includes rules on the minimum standards that employers must meet with regard to things like termination, sickness, and parental leave.
Fixed-term contracts in Denmark
Employers in Denmark can employ workers on fixed-term contracts if they only need their services for a limited time. For example, you could use a fixed-term contract to engage an employee to work on a short-term project or to replace another employee who is temporarily away from work (e.g. on maternity leave).
People employed on fixed-term contracts in Denmark must receive the same rights and benefits as their permanent counterparts. If there is any difference in the way fixed-term employees are treated, their employer must be able to justify this with an objective reason.
Limitations on fixed-term contracts in Denmark
Unlike in some other countries, there is no regulated minimum or maximum term for a fixed-term contract in Denmark. However, there must be a specific, objective reason for concluding a fixed-term contract. Similarly, there is no legal limit on the number of times a fixed-term contract can be renewed. However, Danish courts generally consider three or more renewals to be suspicious and a possible breach of the Salaried Employees Act.
Ending a fixed-term contract in Denmark
Fixed-term contracts in Denmark terminate automatically on their expiry date unless the employer and the employee agree to renew the contract. Both parties can also terminate the agreement during the term by following the termination clause in the contract. When putting together a fixed-term contract in Denmark, it’s important to include clear information on the procedure for early termination to ensure both parties understand their rights and obligations.
Contract extensions in Denmark
Sometimes, an employer might hire an employee on a fixed-term basis but find that they need their services for longer than expected. In this case, it’s possible to provide an extension to the contract as long as the employee agrees.
Although there is technically no legal limitation on the length of fixed-term contracts or how many times they can be extended, employers must have an objective reason for giving the employee a fixed-term contract instead of a permanent one. In practice, renewing a contract twice is deemed to be acceptable as long as there is an objective reason, while three or more extensions might be seen as suspicious. The standard maximum duration for a fixed-term contract in Denmark is two years, although this is not defined by law.
Contract extensions for independent contractors in Denmark
In Denmark, there is no limit on how long an employer can engage an independent contractor or how many times they can renew their agreement. However, it’s important to remember that Danish courts may consider an independent contractor to be an employee if their working conditions look more like employment. Contractors must be registered as business owners with the Danish Business and Tax Authorities and must work without the direct supervision and control of their employer/client.
Working hours in Denmark
The average working hours in Denmark are from Monday to Friday, and employees typically leave work around 4 pm. Full-time working hours amount to 37 hours per week, or 7.5 hours per day. There are specific rules about the maximum hours an employee can work in Denmark, which employers need to be aware of.
Legal working hours in Denmark
Under local employment law, an employee’s average working hours in Denmark can’t be more than 48 hours per week over a four-month reference period. Danish employees are also entitled to a rest period of at least 11 consecutive hours in every 24-hour period and a weekly rest period of 24 consecutive hours. If possible, this rest day should be on Sunday.
Employees in Denmark are also entitled to at least five weeks of paid leave every year, as well as 11 public holidays. Some collective bargaining agreements provide for additional leave.
Overtime in Denmark
Employees in Denmark are typically paid overtime if they work more than 37 hours in a week. Overtime pay is not mandatory unless it’s stated in the relevant collective bargaining agreement, although it is common practice in Denmark. Collective bargaining agreements also state how much employers must pay employees for working overtime, which may be between 150% and 200% of their normal hourly wage.
Maximum working hours for international students in Denmark
As of July 2024, international students who are in Denmark on a student visa can work part-time for up to 90 hours per month alongside their studies. They can also work full–time for three months during the summer.
Remote work in Denmark
As in many countries, remote work in Denmark has become more widespread over the past few years. For this reason, the Danish government has put in place certain regulations to protect remote workers and clarify their rights and responsibilities.
Laws about remote work in Denmark
Given the recent rise in remote working, many countries around the world have introduced remote work visas, which allow employees and freelancers to live and work in the country in question for a limited period without having to meet the usual immigration requirements. There is not currently a remote work visa in Denmark. However, remote employees or freelancers may be able to work in the country temporarily by applying for a working holiday visa.
When employees work from home, their employers are responsible for providing the tools and equipment they need to work, including laptops and other hardware. As of 2022, remote employees are allowed to use their own equipment for work, as long as it meets certain standards.
Health and safety for remote workers in Denmark
Employers in Denmark are encouraged to include information on health and safety when working from home in their employee handbook or manual. This should include information on how to set up a safe and healthy work environment, which might include:
- Enough light to avoid eye strain
- A good level of ventilation and heating
- Proper storage of documents
- A safe exit path in case of emergencies
Denmark remote work visa
Given the recent rise in remote working, many countries around the world have introduced remote work visas, which allow employees and freelancers to live and work in the country in question for a limited period without having to meet the usual immigration requirements. There is not currently a remote work visa in Denmark. However, remote employees or freelancers may be able to work in the country temporarily by applying for a working holiday visa.
Tailored employment contracts in 100+ countries
Like all countries, Australia has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Australia (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
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