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Notice period in Denmark

Termination of employment in Denmark

Post-termination restraints in Denmark

Waivers in Denmark

Transfer of undertakings in Denmark

Avoid risk and missed opportunities with our end-to-end employment solutions

End of employment in Denmark

Every employment relationship eventually comes to an end. And when that happens, there are specific rules that employers need to follow. If you want to hire Danish employees, you’ll need to understand what happens at the end of employment in Denmark, whether it’s a case of dismissal, resignation, or redundancy.

In this section, we’ll go into some of the most important factors impacting the end of employment in Denmark, including the required notice periods for both employees and employers and the different situations when employers can terminate an employee. We’ll also discuss the post-termination restraints that you can impose on employees after the end of employment in Denmark, plus employees’ rights following a transfer of undertaking.

Notice period in Denmark

Both employers and employees in Denmark have to give a certain amount of notice if they want to end their employment agreement. An employee’s notice period is usually defined by their collective bargaining agreement. If the employee is employed under the Salaried Employee Act, there are specific regulations that apply to their notice period. In Denmark, notice periods must be stated in each employee’s employment contract.

Notice periods in Denmark for employers

Under the Salaried Employee Act, the notice period an employer has to give an employee in Denmark depends on how long they have been employed. Collective bargaining agreements may stipulate different notice periods.

Generally speaking, an employer has to give the following notice to an employee if they want to dismiss them:

0–6 months of employment: 1 month
6 months–3 years of employment: 3 months
3–6 years of employment: 4 months
6–9 years of employment: 5 months
9+ years of employment: 6 months

The notice period to dismiss an employee during their probationary period is 14 days. If an employee is employed for a temporary assignment of one month or less, the employer doesn’t need to give any notice to dismiss them.

Notice periods in Denmark for employees

Employees in Denmark also have to give notice when they resign from a job. If the employee is hired under the Salaried Employees Act, they have to give one month’s notice. Again, collective bargaining agreements may provide different terms. Employees in Denmark have to give notice in writing and generally have to work until the end of the month when they are leaving the company. For example, if an employee gave notice on 15 April, they would have to work until the end of May.

Severance pay in Denmark

Employees in Denmark are only entitled to severance pay if they have worked for a company for at least 12 years. For service between 12 and 17 years, they are entitled to one month’s wages. If they have worked at the company for more than 17 years, they are entitled to three months’ pay.

Termination of employment in Denmark

Employers in Denmark can only dismiss employees in specific circumstances. If an employee is unfairly dismissed, they could be owed compensation.

Termination of employment in Denmark

Employers in Denmark can terminate an employee’s contract if they have a justifiable reason for doing so. This reason could be:

Financial
Organisational
Related to the employee’s conduct

Employers can also terminate an employment contract if the employee has been on sick leave for more than 120 days in the previous 12 months.

Termination of employment in Denmark due to employee conduct

If an employer terminates an employee’s contract due to a problem with their conduct, they must first give them a warning and the chance to improve their performance. This warning must be provided in writing and must include:

A clear statement of the problem and what needs to improve
The objective and measurable changes the employee should make
Ideas on how the employee can improve their performance
A statement that failure to improve may result in termination
The time frame in which the employee must improve their performance

Employees who receive a warning that could lead to termination of employment in Denmark have the right to bring a union representative to their meeting with their employer. Employers must give the union representative at least two days’ notice that the meeting is taking place.

Unfair dismissal in Denmark

A termination of employment in Denmark which is not considered to be justified by either the employee’s conduct or the company’s situation may be considered to be an unfair dismissal. In this case, the employee in question may be entitled to compensation. It’s important to note that employees are generally only protected from unfair dismissal once they have worked for their employer for at least a year.

However, it’s always illegal to fire an employee (even during their first year of employment) for any of the following reasons:

Being pregnant or taking maternity, paternity, or parental leave
Filing a complaint against their employer
Being on a temporary work contract
Protected characteristics such as race, skin colour, sex, sexual orientation, etc.
Being a trade union member or participating in trade union activities
Disability, unless the work cannot be adjusted to accommodate the employee’s needs

Collective redundancy in Denmark

There are specific rules that apply to collective redundancies in Denmark. However, what counts as a collective redundancy depends on the size of the company. Dismissal is considered to be collective if, within a period of 30 days, the company lays off:

10 employees for companies with 21–99 workers
10% of the workforce for companies with 100–299 workers
30 employees for companies with 300+ workers

Before an employer can carry out a collective redundancy process, they must first consult with trade union representatives. They also have to consider alternatives to dismissal before proceeding with a collective redundancy decision and notify both the union and the government once the decision has been made.

Post-termination restraints in Denmark

In many countries, employers can impose certain restrictions on their employees’ actions after the end of their employment. This allows them to protect their business interests from former employees, who may (intentionally or unintentionally) cause them harm. These are sometimes known as restrictive covenants or post-termination restrictions.

Possible post-termination restrictions in Denmark

In Denmark, employers who want to impose post-termination restraints on their former employees have three options. They can impose:

A non-competition clause: This prohibits former employees from working for or setting up businesses that compete with their former employer.
A non-solicitation of customers clause: This prohibits employees from soliciting (or “poaching”) their former employer’s customers or business associates.
A combined clause: A clause that includes both of the above restraints.

Maximum terms for post-termination restraints in Denmark

In Denmark, restrictive covenants can’t be for more than 12 months after the termination of an employment contract. If an employer opts for a combined non-competition and non-solicitation clause, the maximum term is six months.

Restrictions on post-termination restraints in Denmark

There are certain restrictions that apply to the post-termination restraints in Denmark. First, the employee in question must have worked for the company for at least six months at the time of their termination.

For non-competition clauses, the employee must also have held a “very special position of trust” within the organisation. Non-solicitation clauses only apply to customers and business partners with whom the employee has business relations during the 12 months before their termination.

Compensation for post-termination restraints in Denmark

Employers in Denmark must compensate employees during the period when a post-termination restraint applies. This compensation must be equal to at least 40% of the employee’s monthly salary if the term of the clause is for six months or less, or at least 60% if it’s for more than six months. This is reduced to 16% and 24% respectively if the employee finds other suitable employment during the restriction period.

Employee non-solicitation clauses in Denmark

In some countries, employers can also prohibit employees from poaching other employees from their former employer. However, this is no longer possible in Denmark and any existing clauses are not enforceable.

Waivers in Denmark

In some situations, employees can waive their statutory rights and their rights to make claims against their employer (or former employer). This usually happens as part of a settlement agreement, in which an employee is paid a sum of money in exchange for waiving their rights.

In Denmark, waivers of rights and settlement agreements are generally enforceable as long as the terms and conditions are fair and balanced. If the terms deviate from employment law legislation, they are not binding and a waiver by the employee is not enforceable.

Transfer of undertakings in Denmark

A transfer of undertaking is when one company is purchased or acquired by another company. There are strict rules concerning what happens to the employees of the purchased company in this situation. In Denmark, employee rights following a transfer of undertaking are set out in the Danish Act on Transfer of Undertakings, which is Denmark’s implementation of the EU directive on the same subject.

What counts as a transfer of undertaking in Denmark?

There has been some debate over what counts as a transfer of undertaking in Denmark. It is generally defined as a situation where there is a transfer of an economic entity which retains its identity. That means that one company simply taking on employees or stock from another company may not count as a transfer of undertaking.

Employee rights after a transfer of undertaking in Denmark

The Danish Act on Transfer of Undertakings states that employees of a purchased entity must be transferred to the purchaser and that their existing terms and conditions must be transferred with them. Prior to the transfer, the employer must inform and consult with employee representatives. Employees can’t be dismissed due to a transfer of undertaking unless there is an economic, technical, or organisational reason for the dismissal.

Avoid risk and missed opportunities with our end-to-end employment solutions

There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Denmark — or you could end up facing legal issues.

Our solutions ensure your business is protected from risk when a relationship with a worker comes to an end — whatever the reason. We can also help you to avoid missed opportunities by re-deploying talent where possible.

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FAQ's

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

Termination of employment in Denmark is governed by the Salaried Employees Act (Funktionærloven), the employee’s employment contract and any applicable collective agreement. Employers must comply with the applicable notice period and where the relevant statutory, contractual or collectively agreed protection applies, be able to demonstrate an objective or fair reason for dismissal,, such as misconduct, poor performance or genuine business requirements.

The protection against unjustified dismissal is not identical for every Danish employee. For example, a salaried employee covered by the Salaried Employees Act may generally claim compensation for an unreasonable dismissal after completing at least one year of continuous employment. Collective agreements may provide similar or stronger protection, sometimes with different qualifying periods. For salaried employees covered by the Salaried Employees Act, statutory notice periods increase with length of service. Employees covered by collective agreements may have additional protections, including consultation requirements, longer notice periods or agreed dismissal procedures. Employers should therefore determine which legal framework applies before issuing notice.

Performance- or conduct-related dismissals will often require prior warnings and a reasonable opportunity to improve, unless the conduct is sufficiently serious to justify dismissal without an earlier warning. Gross misconduct may justify summary dismissal without ordinary notice, but the threshold is high and the response must be prompt and proportionate. When ending employment, employers should also ensure final salary, accrued holiday entitlements and any contractual payments are calculated correctly. This may include reporting and transferring outstanding holiday allowance, paying expenses or variable remuneration that has become due and providing required employment documentation. Where redundancies affect multiple employees, the Danish Collective Redundancies Act may require employers to consult employee representatives before dismissals take effect.

Although Denmark has a relatively flexible labour market under the flexicurity model, employers cannot dismiss employees for discriminatory reasons or in breach of statutory protections relating to pregnancy, parental leave, whistleblowing or other protected rights.

2. What are the notice periods for termination in Denmark?

For employees covered by the Danish Salaried Employees Act (Funktionærloven), the employer’s statutory notice period increases with the employee’s length of service, while employees generally give one month’s notice unless a longer period has been agreed.

Length of continuous service	Employer’s minimum notice
Up to 5 months	1 month
More than 5 months to 2 years and 9 months	3 months
More than 2 years and 9 months to 5 years and 8 months	4 months
More than 5 years and 8 months to 8 years and 7 months	5 months
More than 8 years and 7 months	6 months

Under the Salaried Employees Act, notice given by the employer expires at the end of a calendar month. Employees are generally required to give one month’s notice, ending at the end of a month, unless the employment contract or a collective agreement provides for a longer notice period.

During an expressly agreed probationary period of no more than three months, the employer may generally terminate a salaried employee with at least 14 days’ notice, provided the employment ends before the probationary period expires. Different probationary rules may apply under a collective agreement or to employees outside the Salaried Employees Act. Employees who are not covered by the Salaried Employees Act may have their notice periods determined by their employment contract or an applicable collective agreement. Many collective agreements contain their own notice rules, which employers should review before terminating employment.

3. Can notice periods be extended in Denmark?

Yes. Notice periods can be extended by agreement or collective bargaining, provided the arrangement is clear and lawful. An employment contract may provide a longer period than the statutory or collectively agreed minimum. For employees covered by the Danish Salaried Employees Act, a contractual extension of the employee’s resignation notice must be accompanied by a corresponding extension of the employer’s notice period.

An extended notice period in Denmark may be useful for senior roles, succession planning, regulated positions or jobs where transferring confidential information requires additional time. The arrangement should explain the notice period applicable to each party and, where the Salaried Employees Act applies, how the required corresponding extension has been implemented.

A unilateral extension introduced after a dispute may be challenged if it materially worsens the employee’s position. Any agreed change should be documented before it takes effect and reflected in the employment contract. If the employer seeks to impose a material change without agreement, it may need to give notice equivalent to the employee’s applicable termination notice.

HR should also clarify how the extended period affects garden leave, bonus eligibility, holiday, benefits and post-employment restrictions. Employees need enough information to understand the practical consequences.

A longer notice period can provide flexibility, but only when it is agreed transparently and administered consistently.

4. What is constructive dismissal in Denmark?

Although “constructive dismissal” is not a distinct Danish statutory concept in the same form as in some common-law jurisdictions, a comparable issue can arise where an employer makes a fundamental change (væsentlig ændring) to an employee’s essential terms of employment without their agreement. Under Danish employment law, a material change to the employment relationship may legally be treated as a dismissal, meaning the employer must usually give the employee the same notice that would apply if terminating the employment.

Examples of fundamental changes include:

a significant reduction in salary.

a substantial reduction in working hours.

a major relocation of the workplace.

a significant change in job duties or level of responsibility.

a demotion or other material change to the employee’s position.

Whether a change is material must be assessed individually by considering the employment contract, established workplace practice, the scale of the change and its effect on the particular employee.

If an employer wishes to introduce a fundamental change, it will normally need to provide the employee with the applicable notice period and allow the employee to decide whether to accept the new terms or treat the change as a termination of employment. Employees covered by collective agreements may also have additional protections or consultation rights.

Employers should therefore assess whether a proposed workplace change affects an essential term of employment before implementing it. Consulting with employees early can often help resolve concerns and reduce the risk of employment disputes.

5. What is the four-week claim deadline for unfair dismissal in Denmark?

A four-week deadline may apply to certain unfair-dismissal claims under a collective agreement or particular employment framework, but it is not universal for every Danish employee. The applicable limitation period depends on the legal basis of the claim and the employee’s status.

Employers handling termination of employment in Denmark should preserve the dismissal letter, meeting notes, evidence, payroll records and relevant communications. Employees should obtain advice quickly because a short deadline can expire while informal discussions are continuing.

The deadline may run from the termination date or another relevant event, depending on the governing rules. Collective-agreement coverage, contractual wording and the nature of the complaint all matter. Claims under the Salaried Employees Act, discrimination legislation, whistleblower protections or a collective agreement may follow different procedures and time limits.

HR should not reject a complaint simply because four weeks have passed. The correct route and limitation period must be confirmed before taking a final position.

Prompt internal escalation helps preserve evidence, identify settlement options and prevent a procedural mistake that could make a defensible dismissal harder to manage.

6. What must employers pay at the end of employment in Denmark?

At the end of employment in Denmark, employers must pay all outstanding salary up to the employee’s final day of employment or the end of the notice period, together with any accrued holiday pay or holiday allowance due under the Danish Holiday Act. Holiday pay must be reported or transferred through FerieKonto or the applicable holiday-pay scheme where required. Any bonuses, commission, pension contributions or other contractual payments that have been earned should also be included in the employee’s final pay where applicable.

For salaried employees, this assessment should include any proportionate entitlement to bonus, commission, profit-sharing or similar payments under section 17a of the Salaried Employees Act, where applicable. If the employee has been dismissed, employers should also consider whether salary continues during the notice period, whether any statutory severance is payable under the Salaried Employees Act, and whether a collective agreement provides additional termination payments or benefits. These payments are separate from accrued holiday pay and should be calculated individually.

Before issuing the final payment, employers should confirm that all outstanding expenses have been reimbursed and that any deductions are lawful. Under Danish law, employers cannot simply deduct the cost of unreturned company property or other losses from an employee’s final salary unless there is a legal or contractual basis for doing so. Danish set-off and wage-protection requirements should be checked before making any deduction.

7. When is severance pay required?

Severance pay is only required in limited circumstances in Denmark. Under the Danish Salaried Employees Act (Funktionærloven), salaried employees who are dismissed by their employer after 12 years of continuous service are entitled to one month’s salary as severance pay. Employees dismissed after 17 years of continuous service are entitled to three months’ salary. The qualifying service is assessed at the employee’s departure date. Statutory severance can also apply following an unjustified summary dismissal.

Statutory severance is only available where the dismissal falls within the requirements of the Salaried Employees Act. Employees who resign voluntarily are generally not entitled to statutory severance.

Additional severance payments may also arise through:

a collective agreement.

an employment contract.

a negotiated settlement agreement.

an employer’s redundancy or separation policy.

Statutory severance is separate from notice pay, accrued holiday pay, pension contributions and any contractual bonus or commission payments, all of which should be calculated independently as part of the employee’s final pay.

8. How do fixed-term contracts end in Denmark?

A fixed-term contract in Denmark normally ends automatically on the agreed expiry date or when the specific project or temporary assignment has been completed. Unless the contract allows for early termination, neither the employer nor the employee can usually end the contract before its expiry without breaching the agreement. Early termination may nevertheless be possible by mutual agreement or where a sufficiently serious breach justifies immediate termination.

Employers should review the contract before ending employment to determine whether it contains an early termination clause. If no such clause exists, ending the contract before the agreed end date may result in a claim for damages unless both parties agree to terminate the employment.

Under the Danish Fixed-Term Employees Act, employees on fixed-term contracts must not be treated less favourably than comparable permanent employees simply because of their employment status, unless different treatment is objectively justified. Employers should also avoid repeatedly renewing fixed-term contracts without an objective reason because successive renewals must be supported by objective grounds.

Allowing a fixed-term contract to expire must also not be based on discrimination, pregnancy, parental leave, whistleblowing or another legally protected reason. When the contract ends, employers should process the employee’s final salary, accrued holiday pay, pension contributions and any other contractual payments in the same way as any other termination.

9. What post-employment restrictions can employers use in Denmark?

Employers in Denmark may use confidentiality, non-competition and customer non-solicitation clauses, but these restrictions are governed by the Danish Act on Employment Clauses (Ansættelsesklausulloven) and are only enforceable if the statutory requirements are met.

A non-compete clause may only be used for employees in positions of very special trust, must explain in writing why the employee occupies such a position and generally requires at least six months’ continuous employment. and must be agreed in writing. The restriction can generally apply for up to 12 months after employment ends, and the employer must pay statutory compensation to the employee during the restricted period.

A customer clause may cover only customers with whom the employee had business contact during the 12 months before notice was given, and the employer must provide the required customer list at termination. A combined non-compete and customer clause may last no more than six months.Compensation is generally at least 40% of salary for a clause lasting up to six months and at least 60% for a clause lasting up to 12 months, subject to reduced rates if the employee obtains suitable alternative employment. The first two months’ compensation is normally paid as a lump sum when employment ends.

A non-compete clause will generally cease to apply if the employer dismisses the employee without the employee having reasonably caused the dismissal.

Confidentiality obligations are different. Employees have a continuing duty not to protected trade secrets after employment ends, even where a separate confidentiality clause exists. Other confidentiality restrictions must be appropriately drafted and should not prevent lawful whistleblowing, regulatory reporting or the use of the employee’s general skills and experience.

Before relying on a restrictive covenant, employers should ensure the clause complies with the Act on Employment Clauses and reflects the employee’s role. Clauses that are broader than necessary may not be enforceable.

10. How does CXC streamline end-of-employment processes for HR teams in Denmark?

CXC Global provides Employer of Record (EOR) in Denmark, helping businesses manage employee terminations in compliance with Danish employment law. CXC supports termination documentation, notice period administration, final payroll, holiday pay calculations, employee offboarding and compliance with Danish employment legislation and applicable collective agreements.

Our local specialists help employers manage every stage of the offboarding process, including calculating statutory notice, coordinating final salary and holiday pay, preparing employment documentation, managing employee lifecycle changes and supporting compliant termination processes. Where collective agreements apply, we help employers administer any additional termination requirements and employee entitlements.

For international businesses, CXC provides local employment expertise without the need to build an in-country HR function. Whether you employ workers through our Employer of Record service or your own Danish entity, we help ensure departures are managed consistently, employees receive their statutory entitlements and employment obligations are met.

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