Under Danish law there are generally four categories of employment status:

Blue-collar employees carry out work which is typical of a physical or manual nature. The employment terms are usually stipulated in collective bargaining agreements. 

Salaried employees (white-collar employees) are encompassed by the Danish Salaried Employees Act and are defined as 

a) commercial and office assistants engaged in selling or buying or carrying out office work or equivalent warehousing work

b) persons whose work consists in providing technical or clinical assistance of a non-craftsmanlike or non-manufacturing nature, and other assistants carrying out comparable work

c) persons whose work consists exclusively or essentially in managing or supervising the work of others on behalf of the employer 

d) persons whose work is primarily of the nature specified in (a) and (b) above 

There are also a number of collective bargaining agreements concluded for white-collar employees in Denmark.

Executive officers (CEOs) are generally registered with the Danish Business Authority and are responsible for the day-to-day management of the company, and reports to the board of directors of the company. Freedom of contract applies to a very high degree for executives, who are not encompassed by Danish employee protective legislation.

Consultants are in Denmark considered self-employed persons if certain criteria are met. 

Generally, only employees (blue-collar and white-collar employees) are comprised by mandatory, employee protective legislation in Denmark.

Yes, the main categories of employment are:

• full-time employment (for a defined or an indefinite period)
• part-time employment (for a defined or an indefinite period)
• fixed-term employment (part- or full-time)

As a general rule, there are no requirements as to form, when establishing an employment relationship, which in principle can be validly established by oral, written or implied agreement. Thus, it is not a requirement that a written employment contract is concluded or that an employment contract is signed in order for the employment to be valid. 

Albeit not being an element of a valid employment relationship, an employer is by law required to inform the employee in writing of all essential terms that apply to the employment, not later than one month after the employment has commenced. Non-fulfillment of this obligation does not make the employment invalid, but may, however, be sanctioned against the employer. This duty implies that all employers in practice issue a written employment agreement upon commencement of the employment.

Yes, part-time employees cannot be treated less favorably than comparable full-time employees merely because they are working part-time unless the differential treatment is justified by objective circumstances.

"An employment contract can generally not be assigned (change of employer) without obtaining the employee's consent. 

However, where an undertaking or part of an undertaking is transferred to another company by the acquisition of assets, the transfer may be governed by the Danish Transfer of Undertakings Act ("Danish TUPE").

If the Danish TUPE applies, an employee's employment will automatically be transferred on the same terms and conditions to the transferee. The employee is obliged to transfer to the transferee, no consent required and no right of objection applies, but the employee is, of course, free to terminate his/her employment, should the employee not wish to transfer.

None, unless agreed contractually.

If the company is transferred by way of share sale, there is no change of the identity of the employer and the employees are not directly affected by such transfer. The employees do not have a right to object nor to receive severance payment or the like.

Where an undertaking or part of an undertaking is transferred to another company by sale/acquisition of assets, the transfer may be governed by the Danish TUPE.

If the Danish TUPE applies to a transfer, the employees are entitled and obliged to continue their employment on unchanged terms (including in terms of seniority and salary) with the transferee, who will immediately assume the rights and obligations in relation to the employees on the date of the transfer.  The employees cannot object against the transfer and by this avoid being transferred. Neither are the employees entitled to any severance payment.

No, there are no statutory rights for employees on change of control of an employer.

Under Danish employment law, an employer can unilaterally make non-material changes to the employee's terms and conditions, which can be implemented without or with short notice.

However, material changes to the detriment of the employee are under Danish employment law considered a termination of the employment by the employer, which shall be notified with the employee's individual termination notice. The employee can in this event choose to continue the employment on the changed terms and conditions after the expiry of the notice period or to resign with the same legal position as a terminated employee. Further, the change cannot become effective before the expiry of the notice period (unless the employee consents to it) In this situation, depending on the change in question, it may also be deemed unfair dismissal. An unfair dismissal may trigger an obligation for the employer to pay compensation.

Whether a change of terms is material or non-material is based on a specific assessment of the employment relationship and the term in question. Some changes will, however, as a general rule, be assumed a material change, which is e.g. the case for a change in salary.  

Special rules may apply if the employment is covered by a collective bargaining agreement.

No, Denmark is not an employment-at-will jurisdiction.

Termination rights are subject to mandatory Danish law (for salaried employees), collective bargaining agreements (primarily for blue-collar workers) and contractual rights (executives and consultants). 

If a salaried employee is given notice of termination, the employment must always be terminated to expire at the end of a calendar month. The length of the notice required to be given by the employer depends on the length of the employee's continuous employment - the longer the employment, the longer the notice period. A termination notice on the part of the employer of six months is the maximum afforded by the Danish Salaried Employees Act. Employees can normally terminate employment by giving one months' notice.

If the employer does not want the employee to work during the notice period, the employer can release the employee from the duty to work If the employee is released and finds new employment with a non-competing employer during the notice period, the salary in the notice period paid by the employer may be set off against the salary paid by the new employer. However, such a set-off is not possible in respect of the salary payable for the first 3 months of the release period, since that salary represents a minimum compensatory amount under the Danish Salaried Employees Act.  

For blue-collar workers, the length of the notice required to terminate employment varies depending on the relevant collective bargaining agreement. Where no collective bargaining agreement applies, the employer is generally free to decide on the length of the notice period, although it generally shall be "appropriate." 

For executive officers and consultants, the notice will depend on the contractual rights.

Yes, both under Danish law and collective bargaining agreements. 

Under the Danish Salaried Employees Act, an employer may be under an obligation to pay compensation for unfair dismissal if the employee dismissed has been employed for at least 1 year and the fairness of the dismissal is not justified by the conduct of the employee and/or the circumstances of the employer. If an employee is terminated and the termination is considered unfair, the employee can claim compensation for unfair dismissal.

If an employment is covered by a collective bargaining agreement, the collective bargaining agreement can also contain special rules on compensation for unfair dismissals.

Further, employees may enjoy special protection against dismissal under various circumstances. This is the case for shop stewards (in Danish "tillidsmænd"), safety representatives (in Danish "arbejdsmiljørepræsentanter"), employee elected board members and employee representatives elected pursuant to the Danish Act on Informing and Consulting Employees (in Danish "Lov om information og høring af lønmodtagere"), who enjoy special protection against dismissal as such employees may only be dismissed if there are compelling reasons for the dismissal. If dismissed wrongfully, the employees may be entitled to compensation.

Further, Danish anti-discrimination legislation provides special protection against dismissal. The anti-discrimination legislation contains provisions on compensation and the possibility to be reinstated in the job if such a claim is submitted, in connection with a dismissal in violation of the anti-discrimination legislation.

Under Danish law, protection for whistleblowers is regulated in the Danish Whistleblower Protection Act. Also, there is specific statutory protection for whistleblowers in certain areas e.g., in the Danish Anti-Money Laundering Act and the Danish Financial Business Act.

On 24 June 2021, the Danish Whistleblower Protection Act was adopted. The Act will come into force on 17 December 2021 and will apply to all public employers and large private employers. However, the obligation to implement a mandatory internal whistleblower system, will not come into force for private employers employing between 50 and 249 employees until 17 December 2023.

The Act implements EU directive 2019/1937 on the protection of persons who report breaches in Union law. Pursuant to the act, both public and private employers with more than 50 employees must establish an internal whistleblower system, where employees can report on breaches of Danish and EU law or other serious matters. The whistleblower system must be administered by an impartial person or entity.

The Act prohibits any reprisals against an employee that have reported information through the whistleblower system. Reprisals are understood as any unfavorable treatment as a consequence of the report (e.g. suspension, termination, degradation, discrimination, etc.). If an employee is subject to such reprisals, the employee is entitled to compensation from the employer.

Yes, employees have a right to privacy. 

Under Danish employment law, a general prohibition against the employer abusing the managerial right applies, and this prohibition limits how far the employer may go in relation to the employees' private spheres. Most employers have, however, policies - as part of the employment terms - stating that the employer can monitor the employee's use of the internet, e-mail, etc. during the working time. Such monitoring is only allowed to the extent considered reasonable for the purpose of the business. Also, employees must be informed about the possible monitoring.

Further, the General Data Protection Regulation (GDPR) and the Danish Act on Data Protection are applicable to the processing of the personal data of employees. 

Remedies for breach of GDPR related matters are fines, and in severe cases of violation of the data protection regulation, also prison sentences.

Yes, under Danish law, both job applicants and employees in the ongoing employment are protected from any direct or indirect discrimination due to gender, sexual harassment, race, complexion of skin, religion or faith, political view, sexual orientation, age, handicap or national, social or ethnic origin.

If an employee's rights under Danish anti-discrimination legislation have been violated, the employee may be entitled to compensation. There is, in principle, no upper limit for the size of the compensation by law, but in practice, the compensation will as a general rule not exceed 12 months' salary.

All employees covered by the Danish Holiday Act (generally applicable to all employees except for executives) are entitled to five weeks' holiday (paid or unpaid) per holiday year. As of 1 September 2020, the Danish Holiday Act was fundamentally changed in relation to accrual and taking of holiday principles, but the number of holidays (25) remains the same. The most fundamental change was a transition from staggered holiday to concurrent holiday, to the effect that holiday can be taken in the same year as that in which the holiday entitlement is accrued. 

As for sickness, the Danish Sickness Benefits Act rests upon the principle, that sickness always is lawful absence, provided that the employee is unable to work due to sickness. An employee on sick leave will be entitled to receive a normal salary from the employer (which is the case for white-collar workers comprised by the Danish Salaried Employees Act) or to receive sick pay from the public authorities. 

Pursuant to the Danish Act on Maternity/Paternity Leave and Pay, both female and male employees are entitled to parental leave. Female employees are generally entitled to leave of absence 4 weeks prior to the expected date of birth and 14 weeks after the date of birth. A male employee is entitled to a leave of absence of 14 days during the first 14 weeks after the date of birth. After the expiry of the 14 weeks after the date of birth, either parent is entitled to 32-46 weeks of absence. Only female employees comprised by the Danish Salaried Employees Act are by law entitled to receive salary during maternity leave etc. (50 % of the full salary 4 weeks prior to the expected date of birth and 14 weeks after the date of birth). Employees are often, to some extent, entitled to receive a salary from the employer in connection with parental leave as this is often offered as a benefit. Further, a right to receive parental leave pay from the public authorities applies under certain circumstances if the employee is not entitled to receive a salary from the employer. 

There have not been fundamental changes to the right to benefits in connection with medical leave in the past 12 months. However, there have been some temporary changes due to COVID-19, e.g., a temporary right to medical leave for employees who are at increased risk of COVID-19 infection and for employees whose relatives are at increased risk of COVID-19 infection.

A new provision regarding the right to parental leave has been adopted, giving parents who have lost a child under the age of 18 the right to absence for 26 weeks (bereavement leave). Furthermore, there have been some temporary changes due to COVID-19, e.g., a temporary right to parental leave for parents of children under the age of 14 who are infected with COVID-19 or who are sent home due to a COVID-19 outbreak.  

There is currently no proposed legislation in terms of leave benefits.

Yes, non-competition and non-solicitation of customers clauses are recognized if certain conditions in the Danish Act on Restrictive Covenants are met, amongst others  6 months' seniority, observance of duration and compensation requirements, etc. However, non-competition clauses are only recognized for employees who hold an especially trusted position. Non-solicitation of employees clauses cannot validly be agreed upon under Danish law.

In terms of duration, a single restrictive covenant, i.e., either a non-competition clause or a non-solicitation of customers clause, may be agreed with a duration up to 12 months after the termination date. If both a non-competition clause and a non-solicitation of customers clause have been agreed duration of up to 6 months after the termination date may be agreed upon.

The geographic area does not have to be limited to Denmark or a part of Denmark. The decisive factor is, whether the restrictive covenant goes beyond what is required to protect the employer's interests. If this is the case, a non-competition clause may be limited or set aside by the courts, which also applies for the duration or other relevant circumstances.

In terms of scope of activity, a non-solicitation of customers clause is only applicable to customers, with whom the employee has had contact within the past 12 months prior to the termination or dismissal date.

As regards non-competition clauses, the legislation does not define a scope of activity. In general, under Danish employment law, competing actions are a broad notion, encompassing any action performed by an employee, which inflicts or is suited to inflict competition upon the (former) employer, e.g., marketing or sale of identical products or services. If considered too extensive, a court will modify the scope of activity to what is considered reasonable to protect the employer.

The above does generally not apply to executives, for whom freedom of contract applies, and there is no requirement to pay compensation in order for the restrictive covenants to be enforceable for an executive. However, for employees as well as for executives, the possibility for the employer to enforce the clause will depend on the reason for termination of the employment.

A restrictive covenant may only be imposed on the employee, subject to an agreement. If the employee refuses to enter into such an agreement, there is no direct prohibition against termination of the employment.  However, such a dismissal may be deemed as unfair dismissal. An unfair dismissal may trigger an obligation for the employer to pay compensation. 

As for consideration for restrictive covenants, the employer must compensate the employee 40% of the salary for a single clause (i.e., a non-competition clause or a non-solicitation of customers clause) with a duration up to 6 months and 60% of the salary for a single clause with a duration up to 12 months. If both a non-competition and a non-solicitation of customers clause is agreed, the duration may not be longer than 6 months and the compensation must constitute at least 60% of the salary.

Both the employer and the employee are subject to a statutory requirement to pay monthly contributions to the Danish Labor Market Supplementary Pension Scheme (ATP). The required contribution varies depending on the hours worked, but for reference, the highest required monthly contribution is DKK 284 (2021-level). The employer is required to pay 2/3 of the required amount, whereas the employee is required to pay 1/3.

Besides ATP, there is no requirement for the employer or employee to pay contributions to a pension or retirement scheme, unless provided for in a collective bargaining agreement or agreed in an individual employment contract.

Yes, the Danish state social security system provides a comprehensive range of benefits such as retirement pensions, survivors' pensions, medical care, sickness and maternity benefits, disability benefits, family allowances, and housing allowances.

In the case of industrial injuries and occupational diseases, benefits are provided by insurance companies under the supervision of the National Social Security Office and funded by employers' contributions.

Contributions to the social security system are generally levied through the Danish tax system except in respect of ATP, cf. question 17, and industrial injury.

As a clear general rule, it is not permitted to have a mandatory retirement age in Denmark.

Previously, the Danish Act against Discrimination on the Labor Market, etc. allowed an employer to agree with an employee that the employment should automatically cease when the employee reached the age of 70. As of 1 January 2016, this has no longer been allowed and the general prohibition on discrimination due to age now applies without restrictions.

Certain exceptions to the above apply to e.g., judges and other lawyers employed as public servants with the courts.

Existing age limits in collective bargaining agreements can be upheld if certain criteria are fulfilled.

That would depend on the terms and conditions of such insurance, as this question is not regulated by statute.

No, not for the time being. There is currently no Danish legislation that directly regulates an employer's possibility to make the COVID-19 vaccine mandatory for its employees.

The Danish Act on the Use of Health Information etc. on the Labor Market sets out very strict statutory rules on an employer's possibility to process health information about employees. The act does not for the time being provide a legal basis for employers to obtain information as to whether employees have been vaccinated against COVID-19.

Thus, employees can currently not lawfully be required to provide information about whether they have been vaccinated or not, as this entails a risk of unlawful processing of health information. Based on this, it is our assessment that an employer cannot make the COVID-19 vaccine mandatory for its employees for the time being.

Due to this, it is further our general assessment, that a termination of employment due to an employee refusing to get the vaccine would be associated with a substantial risk that the termination is considered unfair from a Danish employment law perspective, including a risk that the employee may claim compensation for unfair dismissal, unless it would be impossible or with great disadvantages to carry out the employment if the employee refused to become vaccinated. Depending on the reason why the employee does not wish to get the vaccine, the risk of being met with a claim for compensation for discrimination cannot be ruled out.  

As a less extensive measure, an employer may lawfully consider requesting employees to be tested for COVID-19 on a regular basis and prepare written guidelines as to how employees should proceed if they find out that they have been exposed to a person infected with COVID-19 and/or are confirmed infected with COVID-19 themselves, including guidelines on how to behave in the workplace in order to limit the potential spread of COVID-19.

Yes, there is currently no statutory prohibition in Denmark on private offices to be open for physical attendance if appropriate precautions to limit the spread of COVID-19 in the workplace are taken. Private employers in Denmark are therefore allowed to require employees to meet for physical attendance in an office. Thus, generally, employees cannot refuse to return to the office due to COVID-19 if the employer has taken the recommended precautions to limit the spread of COVID-19 in the workplace and thereby taken necessary precautions to ensure a healthy and safe working environment. If an employee refuses to return to the workplace and no documentation for sickness/particular risk has been provided by a doctor, a refusal to return to the workplace will generally be an unlawful refusal to work which, depending on the circumstances, can justify disciplinary action, including termination of employment or summary dismissal.

However, should any employees be subject to a specific risk in relation to COVID-19, it is generally recommendable to initiate a dialogue with such employees with a view in trying to find a solution acceptable to both parties within the company's need.