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Written Agreements

Employers of Danish citizens are obligated to provide a written contract containing all material terms to employees working for at least a month and more than 8 hours per week. If a collective bargaining agreement regulates the general terms of employment, the contract must include a specific reference to the agreement.

Employers have the right to establish restrictive covenants with their employees, offering them options such as a non-competition clause, which prevents employees from competing with their employer, a non-solicitation of customers' clause, which prohibits employees from engaging in business with the employer's customers or associates, or a combination of both clauses. The maximum term of such clauses is 12 months. Such clauses are valid only if the employee has been informed in writing.

Oral Agreements

An employer is required to provide the employee with written information about the essential employment conditions within 1 month of employment if the employee works for at least 8 hours of work per week. If an employer fails to provide the terms of the agreement in writing to the employee, the employer will be liable for damages.

Implied Agreements

In Denmark, there are no specific provisions on implied employment contracts. However, an employer is required to provide the employee with written information about the essential employment conditions within 1 month of employment if the employee works for at least 8 hours of work per week.

In addition, a duty of loyalty is implied in all employment relationships, which requires an employee to refrain from actions that harm the employer or compete with the employer.

Per the labor law of Denmark, an employee's weekly working time must not exceed 48 hours on average over a period of 4 months, including overtime. Periods of annual paid leave and periods of sick leave are not included in or are neutral in relation to the calculation of the average. From July 1, 2024, employers are allowed to enter into individual agreements with certain employees to work more than 48 hours. This applies only to employees who are covered by collective agreement provisions on on-call shifts and who perform critical functions within the areas.

Employers must give a rest period of at least 11 consecutive hours within every period of 24 hours. There must be at least one 24-hour rest period per week. The employer must do their best to ensure that this period falls on a Sunday and that all employees take this rest at the same time.

The regular daily working hours for night workers must not exceed an average of 8 hours over a period of 4 months. Where a night worker is employed for particularly hazardous work or for work that involves a significant physical or mental strain, no more than 8 hours shall be worked in a 24-hour period during which night work is performed.

The official public holidays in Denmark are those recognized by the Church of Denmark. For 2024, these are:

• April 6: Maundy Thursday
• April 7: Good Friday
• 10 April: 2nd Easter Sunday
• May 5: Great day of prayer
• May 18: Ascension Day
• 19 May: Bank closure day
• 29 May: 2nd Pentecost
• 5 June: Bank closure day
• 25 December: Christmas Day
• 26 December: Boxing Day

Danish law limits the maximum probationary period for salaried employees to 3 months. An employer must give 14 days' notice to terminate the contract during this period, while an employee can terminate without notice. A contract may provide a more extended notice of termination for a salaried employee if the employer's notice of termination is extended accordingly.

For non-salaried workers, the probationary period may not exceed 6 months or, for fixed-term contracts, a quarter of the employment period.

Notice Period

Denmark's labor law stipulates that employers must give notice before terminating a salaried employee. The termination notice period applicable to both the employee and employer is often stated in the collective agreements for hourly employees. For salaried employees, the notice period is dependent on their years of service, ranging from 1 month to 6 months.

If the employment relationship is temporary and does not exceed 1 month, no notice period is required. If the employment is probationary and does not exceed 3 months, the employer must provide at least 14 days' notice, while the employee is not required to give notice.

Severance Benefits

The law in Denmark entitles dismissed salaried employees to severance pay if the employee has been continuously working for the same company for at least 12 years.

Severance benefits are provided as follows:

• Employees are entitled to 1 month’s salary if they have worked for the same employer between 12 and 15 years.
• Employees are entitled to 2 months’ salary if they have worked for the same employer between 15 and 17 years.
• Employees are entitled to 3 months of salary if they have worked for the same company for 17 years or more.

No severance benefits are paid if the employee receives a retirement pension from the employer upon dismissal.

Minimum Wage

There is no statutory minimum wage that applies to all employees in Denmark. Minimum wages are regulated by collective agreements at the sectoral level or negotiated individually between employers and employees.

Payroll frequency

The most common payment systems in Denmark are based on monthly wages, day wages, hourly wages, and piecework wages. Hourly, day, and piecework wages are generally paid once or twice a month, and monthly wages are naturally paid out monthly retrospectively.

Overtime, Holiday & Vacation Pay

There are no statutory provisions for overtime pay in Denmark, although collective agreements generally entitle the employee to compensatory time off or a pay supplement for working overtime hours. The law states that employees' working hours cannot exceed 48 hours in a week, including overtime. On Sundays and public holidays, the rate in collective agreements is usually 200% of the hourly wage. Danish employees are also generally entitled to 5 weeks of paid leave annually.

Visas

The immigration law of Denmark requires a visa for entry into the country unless the individual is exempt from the visa requirements. The following individuals are exempt from the visa requirements:

• Citizens of Finland, Iceland, Norway, and Sweden
• Foreign nationals who are nationals of a country that is affiliated with the European Union
• Foreign nationals who hold an EU residence card issued in another Schengen country
• Foreign nationals who possess an EU residence card issued by a non-Schengen country when accompanying or joining the EU citizen
• Foreign nationals with a residence permit or long-term visa in another Schengen country
• Foreign nationals who are exempted from European Union visa rules
• Foreign nationals who are nationals of a country with which Denmark has entered into a visa-free agreement

Denmark issues national long-stay visas and Schengen visas, valid for all Schengen countries. The visa is valid for 180 days, but a continuous stay in any Schengen country is limited to 90 days. Foreign nationals who wish to study in Denmark are required to obtain a residence permit.

Work Permits

Citizens from the Nordic countries, the European Union (EU), European Economic Area (EEA) and Switzerland are entitled to work in Denmark without a permit. However, persons who are EEA or Swiss citizens and intend to reside in Denmark for more than three months must apply for an EU residence document.

Other foreign nationals who wish to be employed in Denmark are required to obtain work permits. The Danish Immigration Service concludes a contract of employment with the foreign national who has the right to be advised about the terms of employment either orally or in writing.