Employer of Record (EOR) in Denmark
Expanding your business into Denmark? With Native Teams’ Employer of Record (EOR) solutions, you can hire employees in Denmark without setting up a local entity. We’ll handle the legal, administrative, and compliance processes so you can focus on growing your business.
How does an EOR in Denmark work?
With the help of an EOR provider, every business owner can hire employees globally without opening their own entities in the countries of hiring. By employing team members through your EOR’s entities, you can expand your business without worrying about drafting employment contracts, processing payroll, administering benefits, or being compliant with local labour laws.
We take care of everything—drafting compliant employment contracts, processing payroll, managing benefits, and ensuring compliance with Danish labour laws. This streamlined setup allows you to expand into Denmark quickly, legally, and without administrative burden.
Who can use EOR Services in Denmark?
Whether you’re a startup looking to test the Danish market, a scale-up expanding your team, or an established enterprise entering a new region, Native Teams enables you to hire talent in Denmark without the need to register a local business entity.
From contract generation and payroll to tax compliance and benefits administration, we manage the full employment lifecycle in line with Danish regulations, giving you confidence and control as you grow your presence in the region.
Features of Native Teams’ EOR services in Denmark
Employment status
With Native Teams’ EOR solutions, your business can employ team members in Denmark without establishing a legal entity. We ensure each employee is formally hired through our local entity, with full compliance with Danish labour laws. You manage the work; we handle the legal employment framework.
HR administration and documentation
With Native Teams, you can automate your HR administration and have everything you need in one place. Thanks to our simple platform, you can access, manage, and review all the essential documentation for your global team members with just a few clicks.
Global payroll
Our platform offers payroll calculators that are adapted to the labour laws of over 85 countries worldwide. With our calculators, you can easily determine salaries, taxes, contributions, and other statutory deductions for your team members in Denmark.
Benefits
Through our EOR services, you can offer your Danish team members comprehensive employment benefits such as health and pension insurance, social security coverage, and more. These localised benefits help you stay competitive in the Danish job market and attract top-tier talent.
Explore our detailed hiring guide to learn more about the labour laws and regulations in Denmark.
What legal requirements exist for employment in Denmark
Business registration
It’s mandatory to establish a legal entity in Denmark before hiring employees for your business.
Employment contracts
Employers are obligated to issue employment contracts for every regular employee, outlining the most important terms and conditions of the arrangement.
Collective bargaining agreements
Danish employers must be aware and comply with all the collective agreements applicable to the industry, including salaries, working conditions, and benefits.
Social security
Even though Danish social security is mainly financed through tax revenues, employers are required to deduct a minimal amount of social security contributions and remit them to Danish tax authorities.
Income taxes
Danish employers must withhold income taxes from their employees’ salaries and submit them to the relevant tax authorities.
Local labour laws
Employers who hire Danish employees must comply with Danish labour laws and regulations such as anti-discrimination laws, equal-pay regulations, termination of employment laws, and others.
Please note that all these requirements may vary depending on the job type, the employer and individual circumstances.
Why choose Native Teams as your Denmark Employer of Record?
With legal entities in 85+ countries worldwide, Native Teams is your ultimate ally for hiring and expanding your international workforce.
Our expert teams of tax and legal specialists will help you understand all the legal requirements for hiring and working compliantly in Denmark, and take care of your essential operations such as payroll, benefits administration, tax withholding, and more.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that legally employs workers on behalf of another company. While the EOR handles all the legal, administrative, and compliance-related employment responsibilities, such as payroll, tax filing, employment contracts, and benefits, the company that partners with the EOR maintains full control over the employee’s day-to-day work and responsibilities.
In other words, an EOR enables businesses to hire talent in foreign countries without having to set up a local legal entity, making international expansion faster, more cost-effective, and fully compliant with local labour laws.
What are the costs of using an Employer or Record in Denmark?
The total expense for EOR services in Denmark depends on a few factors, including the specific EOR provider, the number of employees, and the scope of services you require. Native Teams is one of the EOR providers trusted by businesses in 85+ countries worldwide, offering a flexible and transparent pricing structure that can be adapted to fit your unique business needs.
Explore our plans and find the one that fits—visit our pricing page.
What is the difference between PEO and EOR?
EOR providers assume the role of legal employer for the client’s company, meaning they take responsibility for legally employing team members, managing payroll, administering employee benefits, withholding taxes, and more. Therefore, EOR providers are beneficial for companies that want to hire employees in countries abroad but don’t have their own legal entities there.
PEO providers cover only a portion of these responsibilities, including HR operations like payroll processing and benefits administration. The client company remains the legal employer for their team members and has a shared responsibility for employment management and compliance. As such, PEO providers are beneficial for companies who have legal entities in the countries of hiring but need expert support for their essential HR operations.
What are the responsibilities of an Employer of Record (EOR) service provider?
The main responsibility of an EOR provider is assuming the role of legal employer for the client company’s employees in their residential countries. With this, your employees are formally employed through the EOR’s entities in the countries of hiring, and they handle tasks like payroll processing, benefits administration, providing employment contracts, and ensuring compliance with local labour laws. Some EOR providers might also offer additional HR services at the request of the client company.
Is using an Employer of Record in Denmark legal?
Yes, using Employer of Record services in Denmark is completely legal. In fact, one of the main responsibilities of EOR providers is helping businesses and freelancers work in compliance with the labour laws and regulations of Denmark. With the help of an EOR provider, businesses can compliantly hire team members, and solo professionals can regulate their employment status in the country.
Why should I use EOR instead of opening my own company or an office in Denmark?
Opening a company in Denmark is a complex process that requires time, resources, and legal expertise. This includes registering your company with the authorities, obtaining a tax identification number, opening a business bank account, and sometimes even securing a physical office space for your company. All of this needs to be completed before you can hire employees from the country.
EOR providers let you skip this complex process and hire in Denmark quickly. With this, your employees will be formally employed through the EOR’s entity in Denmark, and they will also take care of your payroll, taxes, benefits, employment contracts, and other employee-related matters. This means you can hire individuals from Denmark quickly and cost-effectively without worrying about administrative procedures or being compliant with local labour laws.
How many people can I employ in Denmark?
There is no specific limit on the number of employees you can hire in Denmark or any other country. Using the services of an EOR provider, you can secure legal employment for yourself and employ as many individuals as your business requires.