• Probation periods are a common practice in Denmark, with a legally mandated maximum duration of three months, which cannot be extended. Within this period, either party has the right to terminate the employment contract by providing a notice period of 14 days.
• For fixed-term contracts, the probation period should not surpass one-quarter of the contract’s duration. It is expressly forbidden to stipulate additional probation periods when extending or renewing a fixed-term contract.

The standard full-time work week in Denmark generally consists of 37 hours, spread across five days with typical working hours falling between 6:00 a.m. and 6:00 p.m. Danish workplace culture places a strong emphasis on maintaining a positive work-life balance. As a result, it is relatively uncommon for these working hours to be regularly or consistently exceeded, except in exceptional situations. The specific working hours of an employee should be clearly outlined in the employment contract.

Denmark lacks specific legislation addressing overtime. Numerous contracts for salaried employees specify that the salary encompasses payment for any overtime worked, though this provision does not extend to hourly paid workers. Typically, overtime payment regulations are outlined in relevant Collective Bargaining Agreements (CBAs). The prevalent model often entails a 50% additional payment for the initial three hours and a 100% additional payment for subsequent hours, including those worked on Sundays or public holidays.

As per the EU’s Working Time Directive, adopted in Denmark through the Working Environment Act, employees are prohibited from working more than an average of 48 hours per week over a four-month reference period.

While not obligatory, bonuses are prevalent in Denmark. The terms and amounts of bonuses can significantly differ, contingent upon factors such as seniority, role, and industry. It is considered advisable to explicitly define bonus terms in written agreements. As per the Danish Salaried Employees Act, in the event of an employee’s resignation, they are assured a proportionate portion of any impending bonus payment, reflecting what they would have received had the employment persisted until the bonus disbursement period.

Termination is permissible based on fair grounds, with no specific legislation governing disciplinary procedures in place. In most cases, dismissals related to employee circumstances, such as performance issues, are likely to be deemed invalid if the employee has not received a prior written warning.

During a notice period, the employer has the option to place the employee on garden leave, but there is no statutory right for the employer to provide payment in lieu of notice.

Danish legislation overseeing employer-employee relationships is generally more lenient compared to many other EU countries, often favoring the employer. However, specific employee categories have protections against termination, including pregnant employees, those on maternity or paternity leave, health and safety representatives, and trade union representatives. Other categories may also enjoy such protections.

Employees with less than 12 months of employment (and thus not covered by the Salaried Employees Act) or those not covered by a Collective Bargaining Agreement (CBA) are not automatically safeguarded against unfair dismissal.

In Denmark, post-employment obligation clauses are governed by the Danish Act on Restrictive Covenants, which imposes stringent and specific requirements for their enforceability.

The Act recognizes three types of post-employment obligation clauses:

1) A non-competition clause, valid for either six or 12 months after employment termination.
2) A non-solicitation of customers clause, applicable for either six or 12 months post-employment.
3) A combined clause, enforceable for only six months after employment termination.

An employee can only be required to sign a non-competition clause or a combined clause if they hold a position of particular trust or have made an invention. A non-solicitation clause is applicable only to customers with whom the employee has had a “significant” relationship, and the employee must be provided with a list of such customers upon termination.

During the restricted period of a non-competition clause, the employee is entitled to compensation, corresponding to 40% or 60% of their monthly salary, depending on the duration of the restricted period (six or 12 months).

A non-competition clause becomes unenforceable if the termination is initiated by the employer.

Employees may be entitled to severance pay, in addition to the contractual notice period payment. For employees dismissed after working continuously for the same employer for 12 to 17 years, the employer is obligated to provide a sum equivalent to one to three months of salary. No severance pay is applicable for those who have worked less than 12 years with the same employer.

Severance pay rules apply to economic dismissals, and there is no specific statutory redundancy payment for collective dismissals.

In 2019, the European Court of Justice emphasized the necessity for companies to establish an objective, reliable, and accessible system for recording the working time of their employees.

Trade union membership in Denmark, although historically high compared to many other European countries, has experienced a significant decline in recent years. Approximately two-thirds of the workforce are estimated to be union members. It’s important to note that trade union membership in Denmark is voluntary and should not be influenced by the employer.

Fixed-term contracts in Denmark are permissible for specified periods or specific tasks, with no regulated minimum or maximum terms. However, the time limit must be justified by a specific circumstance for that employment.

The repeated renewal of a fixed-term contract requires objective justifications. Temporary workers enjoy the same rights and benefits as comparable full-time employees, and any differential treatment must be based on objective reasons.

In practical terms, a cumulative duration of two years is often considered the maximum term. Three or more renewals may be viewed as suspicious and could be deemed a violation of the Salaried Employees Act by a court.