Global Expansion Resources | Denmark

According to Danish law, the employer is obliged to compose and provide a written contract to the employee one month after their start date (at the latest). This is provided that the employee will be employed for more than one month, and will be working more than eight hours per week. 

For the most part, the most common types of Danish employment contracts include:

• Indefinite employment contract – this is by far the most popular form of employment contract in Denmark, so much so that if no other contract has been agreed upon, this is the default contract type. Both parties retain the right to terminate the contract, but it must be agreed upon the contracted terms of notice, severance agreements and any other collective agreements. 
• Fixed-term employment contract – this type of contract is suitable for employees who are working for a specific period of time, but can only legally be renewed once before it will then be considered as employment on indefinite terms.

Whilst amendments can be made, changes to Danish employment contracts must be agreed by both parties in plenty of time, so as to allow enough time for review and agreement. Amendments made to employment contracts in Denmark without the knowledge of the essential parties could further the risk of non-compliance, and could potentially result in employee disputes. Once again, this can cause unnecessary wasting of time, money and resources, on top of your company falling victim to legal misconduct.

As aforementioned, it is not a legal requirement to have the employment contract translated into the native language of the employee. This rests upon their ability to coherently understand the terms written in the selected language, and if employees require a translation, it is their responsibility to request it.

At a standard level, all Danish employment contracts require the following terms:

• Job description (including duties, job title and other information)
• Name and address of the employer and employee
• The place of employment and commencement date
• Expected duration of employment, if not an indefinite contract
• Employee entitlement regarding annual leave and other benefits
• Employer and employee’s terms of notice
• The agreed salary to which the employee is entitled to at the beginning of their employment
• The standard daily or weekly working hours
• Information on which collective agreements or other agreements which regulate the employment and working conditions

As expected, the terms of employment must be correct at the time of writing to negate the probability of employee disputes. Disputes are a surefire way to cost your company valuable resources, time and money, which expanding businesses may have in short supply. Enlisting the help of an expert Denmark PEO partner like Leap29 can help you mitigate your risk of non-compliance and keep your employees satisfied with their employment at your company.

Creating and distributing compliant Danish employment contracts is not only a feat which requires the utmost attention to Danish labour laws and obligations, but one which is laden with risk. If you fail to comply with these important regulations as set out by Denmark’s governing bodies, you can easily open your business up to tricky employee disputes, fines and wasted time. Undoubtedly, your time could be better spent focused on expanding other areas of your business.

In combination with other vital aspects of international company growth, such as payroll, national insurance, tax, entity setup, recruitment, work permits and visas, there are several aspects of company growth which need to be considered when joining new Danish markets. Leap29 can streamline your expansion into Denmark with our team of PEO experts who are fully certified, and well-versed in Danish employment laws. We’re ready to support you in your global business expansion.

With over 20 years of experience providing recruitment services to businesses covering multiple sectors, including Engineering and Construction, Oil & Gas, Pharmaceuticals, Renewable Energy and Technology, we are ready to help you thrive.

If you are interested in learning more about how our PEO services in Denmark can benefit your company, contact our specialists today on +44 (0) 20 8129 6860 or email [email protected] to get started.