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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

Tailored employment contracts in 100+ countries

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

Remote work is not an automatic right in Denmark, and employees can only work remotely with the agreement of their employer. An employer can require their employees to work remotely for a short period. However, if an employee is required to work from home on a permanent basis for a few days a week or more, this could constitute a substantial change in their terms of employment. In this case, the employer would have to notify the employee of the change.

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, Denmark 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 Denmark (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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FAQ's

1. What are the rules for employment contracts in Denmark?

Employment contracts in Denmark must clearly set out the key terms of employment, and employers must provide employees with written employment information that complies with Danish law. While contracts can be oral in some situations, a written agreement is the standard practice. The statutory obligation is to provide specified employment information in writing; this does not necessarily mean that every employment relationship requires a mutually signed contract.

The Act on Employment Certificates and Certain Working Conditions generally applies where predetermined or actual working time averages more than three hours per week over four consecutive weeks. It also covers employment relationships where no guaranteed amount of paid work is established in advance.

An employment contract in Denmark should include key terms such as:

Job title and duties.

Salary and payment frequency.

Working hours and place of work.

Holiday entitlement.

Notice periods.

Pension arrangements, where applicable.

Probation period, if one applies.

Any collective agreement covering the role.

Denmark’s labour market is also shaped by collective agreements negotiated between employers’ organisations and trade unions. Although not every employer is covered by one, businesses should check whether a collective agreement applies, as it may set minimum standards for pay, working hours, overtime, leave and other employment conditions.

Employers should also include terms covering confidentiality, intellectual property, sickness absence, parental leave, remote working and any lawful post-employment restrictions where they are relevant to the role. Post-employment restrictions must comply with the Danish Employment Clauses Act, including the applicable eligibility, duration and compensation requirements.

2. Are written employment contracts required in Denmark?

Employers must generally provide covered employees with written information about the essential terms of employment, although Danish law distinguishes this information obligation from the requirement for a mutually signed employment contract. This requirement applies to most employment relationships, including permanent, fixed-term, part-time and remote employees.

The written information should be provided within the timeframes required by Danish law and updated whenever significant employment terms change. Most core information – including the parties’ identities, workplace, role, start date, remuneration and working-time arrangements – must generally be provided within seven calendar days after employment begins. Certain other information, including paid-leave rights, notice rules, collective agreements, training and applicable social-security institutions, must generally be provided within one month. While the employment relationship can begin before all documentation is finalised, employers are still responsible for ensuring employees receive the required written terms within these statutory deadlines.

Providing clear written employment terms helps both parties understand their rights and responsibilities from the start. It also reduces the risk of disputes over pay, working hours, leave, notice periods or other employment conditions later in the employment relationship.

For employers covered by a collective agreement, the written terms should also align with the relevant agreement where it applies. Collective agreements may modify or replace certain statutory provisions where Danish law permits this, and the agreement provides the required level of employee protection.

3. What types of employment contracts exist in Denmark?

Employment contracts in Denmark commonly include permanent, fixed-term, part-time, temporary and casual arrangements. Temporary-agency employment is a separate arrangement regulated by specific rules. The right labour contract in Denmark depends on the nature of the role, how long the work is expected to last and the employer’s operational needs.

Permanent employment contract in Denmark is the standard arrangement for ongoing roles and does not have a fixed end date. A fixed-term contract in Denmark may be used its end is determined by objective criteria, such as a specific date, covering parental leave, completing a specific project or managing seasonal demand. Once the agreed term expires, the contract generally ends automatically unless it is renewed or converted into permanent employment.

Part-time employees have many of the same employment rights as full-time employees and should not receive less favourable treatment solely because they work fewer hours. Temporary agency workers may also have rights under Danish law and any applicable collective agreement, while the responsibilities of the agency and the end user will depend on the working arrangement. Agency workers are generally entitled to specified core working and employment conditions equivalent to those that would apply if they had been recruited directly for the same position, subject to permitted collective-agreement exceptions.

Some employees are covered by the Danish Salaried Employees Act, while others are employed under individual employment contracts and applicable collective agreements. The employment contract should clearly set out the employee’s terms and reflect the actual working relationship.

4. What must be included in an employment contract in Denmark?

A compliant employment contract in Denmark should state the employer and employee’s names and addresses, workplace, job title, start date, salary, payment frequency, normal working hours, holiday arrangements and notice terms.

Denmark’s official employment contract guidance also identifies information about the expected duration of non-permanent employment, duties and workplace location as important contract content. Where the employee works in several locations, the agreement should explain that arrangement.

Variable remuneration should describe the calculation method, eligibility conditions and payment timing. Remote or hybrid terms should address approved locations, equipment, expenses, information security and travel expectations.

The document should also cover probation, pension, sickness, parental leave, confidentiality, intellectual property and any lawful restrictions after employment. It should identify applicable collective agreements and explain their practical effect. Not every subject must be reproduced in full if the law permits the contract to refer clearly to legislation, a collective agreement or an accessible policy.

Specific drafting makes the agreement useful without making it unnecessarily difficult to understand or administer.

5. What are the rules for fixed-term contracts in Denmark?

A fixed-term contract in Denmark must have an objectively defined end point, such as a specified date, project completion or the return of a named employee. The contract should record the event or objective criterion that determines when employment will end.

Fixed-term employees should generally receive treatment comparable to permanent employees performing similar work, unless different treatment is objectively justified. Pay, holiday, working hours, pension and access to workplace facilities should therefore be reviewed carefully.

Repeated renewals are permitted only where each renewal is supported by objective grounds. Examples can include unforeseen absence, such as sickness or parental leave, delay in completing a specifically defined task or the continuing need to complete an originally temporary assignment. Danish law does not establish one general maximum duration or number of renewals for every fixed-term contract, but special rules may apply to particular sectors or employee categories.

The contract should explain whether it ends automatically or requires notice. Any early termination right must be stated clearly and supported by the applicable rules. If the contract does not contain an early-termination provision, the parties may generally remain bound until the agreed expiry date unless there is a lawful basis for immediate termination.

A fixed-term arrangement should reflect a real temporary need, not simply provide an easier way to manage a permanent position.

6. How can employers change employment contract terms in Denmark?

Employers in Denmark can change contract terms by agreement, but a significant unilateral change may be treated as termination of the existing arrangement followed by an offer of revised employment. Whether a change is significant depends on its effect on pay, duties, location, working time and status.

A contract amendment is safest when both parties understand the proposed change, its effective date and the business reason. The employee should have enough time to consider the proposal, and acceptance should be recorded in writing. Where a change affects information covered by the Act on Employment Certificates and Certain Working Conditions, the employee must generally receive written notification no later than the date on which the change takes effect. This does not apply where the change results solely from an amendment to legislation or an identified collective agreement.

Changes affecting collective-agreement rights may require consultation with employee representatives or compliance with the agreement. Payroll, benefits records and workplace policies must also be updated so that the written terms match daily practice.

A substantial pay reduction, relocation or reduction in responsibilities should not be presented as a routine administrative amendment. A material unilateral change normally requires notice corresponding to the employee’s applicable termination notice. The employee may reject the revised terms and treat the notice as a termination, meaning the employer must also consider the legal requirements governing dismissal. If agreement cannot be reached, obtain Danish employment advice before taking further action.

Careful communication can turn a difficult change into a manageable and properly documented agreement.

7. Which Danish employment laws do employers need to know?

Employers should understand the Working Environment Act, the Holiday Act, the Act on Employment Certificates and Certain Working Conditions, the Salaried Employees Act where relevant, anti-discrimination legislation, parental-leave rules and data-protection requirements.

The Working Environment Act addresses safety, health and aspects of daily and weekly rest, while the Working Time Act governs matters such as maximum average weekly hours, breaks and night work. Since 1 July 2024, employers have generally been required to maintain an objective, reliable and accessible system recording employees’ total daily working time. Records must generally be retained for five years, subject to limited exceptions such as certain self-organising employees. The Holiday Act governs paid leave and accrual. The Salaried Employees Act may regulate notice, probation and compensation for certain white-collar employees.

Other rules cover sickness, equal treatment, whistleblowing, employee monitoring and fixed-term work. Relevant legislation may include the Equal Treatment Act, Anti-Discrimination Act, Whistleblower Protection Act, Fixed-Term Employment Act, Data Protection Act and the EU General Data Protection Regulation (GDPR). These areas often overlap, so a contract should be drafted alongside workplace policies rather than in isolation.

Foreign employers should distinguish mandatory protections from benefits arising only through collective bargaining or company policy. They should also confirm whether the employee’s role falls within a special statutory category.

A short local review before hiring is usually more efficient than correcting an incomplete agreement later. Legal compliance depends on the contract, payroll and actual workplace practice working together.

8. How do foreign companies manage employment contracts in Denmark?

Foreign businesses should localise their template, confirm whether a collective agreement applies, establish payroll responsibilities and ensure that the contract reflects the employee’s actual working pattern.

Using a labour contract in Denmark copied from another country often leaves important Danish requirements unaddressed. The document should be written in language the employee understands, with technical Danish terms explained accurately where necessary. Danish law does not generally require every employment contract to be written in Danish, but the employee must receive clear and accessible information about the applicable employment terms.

A local HR or employment specialist can review clauses on probation, variable pay, remote work, confidentiality, intellectual property and post-employment restrictions.Post-employment restrictions must comply with the Danish Employment Clauses Act, including the applicable eligibility, duration and compensation requirements. Immigration documentation should be consistent with the employment terms and proposed salary.

When a foreign company lacks a Danish entity, an EOR can provide the employing framework while the client retains operational control over the employee’s role and daily activities. Contract amendments, disciplinary measures and termination decisions should be coordinated with the EOR as the legal employer Good governance requires one approved contract version, secure records and a formal process for every amendment.

The company should also train managers so promises made during recruitment do not conflict with the signed terms. Localisation is both a legal and an operational exercise.

9. Can an employee in Denmark have a second job while under an employment contract?

Usually, yes, and employers must generally not prevent an employee from taking parallel employment if the employee can continue working according to the schedule established by the primary employer. Restrictions may be permitted where the second job is incompatible with the existing employment relationship because of a conflict of interest, health and safety, protection of business secrets or the integrity of public administration.

For employment contracts in Denmark, restrictions should be proportionate and connected to a legitimate business concern. A blanket ban on all outside work may be difficult to justify, particularly for part-time employees or people working irregular schedules. A general contractual prohibition on secondary employment may breach the Act on Employment Certificates and Certain Working Conditions.

The employee must continue to respect confidentiality, loyalty and health-and-safety duties. Combined working hours may also raise concerns where they affect required rest periods or safe performance. Company equipment, customer information and proprietary materials must not be used for the second job.

Employers should focus on conflicts, availability and confidential information rather than controlling unrelated personal activity. A clear outside-work policy gives managers a consistent framework without unnecessarily limiting employee freedom. Any disclosure or prior-approval requirement should therefore be limited to circumstances in which the employer has a legitimate need to assess compatibility.

10. How does CXC simplify employment contract compliance in Denmark?

CXC helps employers prepare compliant employment contracts in Denmark while supporting every stage of the employment lifecycle. Whether you are hiring one employee or building a workforce, our local experts help ensure employment contracts, payroll, onboarding and statutory employment obligations align with Danish employment laws.

When you partner with CXC, we can support your business with:

Preparing locally compliant employment contracts.

Managing onboarding, payroll and employment administration.

Helping employers understand local requirements for working hours, holiday, leave and statutory benefits.

Supporting employment changes, contract renewals and terminations.

Identifying when collective agreements or specialist legal advice may affect the employment relationship.

With more than three decades of global workforce experience, CXC combines local employment expertise with the capability to support hiring across multiple countries. This allows employers to maintain a consistent workforce strategy while meeting the legal requirements of each market.

Partner with CXC to simplify employment contract compliance in Denmark, reduce administrative complexity and focus on growing your business.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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