What should an employment contract in Denmark include?
An employment contract in Denmark should include the following essential elements:
- Names, addresses, and contact information of the employer and the employee.
- The job title, role description, and the span of responsibilities.
- The employee’s work schedule, including the hours and days of working.
- The pay schedule and compensation (salary or wage + additional benefits).
- Termination policies, including a notice period by both parties.
- Any confidentiality or non-disclosure clauses to ensure that the employer’s proprietary information remains secure.
Each of the parties should do a thorough review and understand the key terms of the arrangement before signing the employment contract.
What types of employment contracts exist in Denmark?
Employment contracts in Denmark can be split into the following categories:
- Employee contracts
In the Danish labor market, there are 2 different types of employee contracts:
- Permanent employment contracts: Permanent or indefinite-term employment contracts remain effective until terminated by one of the parties. Permanent employment contracts should outline the rights and obligations of both parties, as well as employment terms regarding working hours, salary, benefits, notice period, and termination policies.
- Fixed-term employment contracts: As these contracts are effective for a specific period of time, they should outline the start and end dates of employment. In addition, fixed-term contracts should also specify the employment terms and the rights and obligations of both parties.
- Temporary agency work contracts
Temporary agency work contracts apply to workers who are hired through a temporary staffing agency to work for a specific company on a temporary basis. Among the key terms and conditions of employment (including the salary and duration of the arrangement), these contracts should define the employment relationship between the temporary agency, the employee and the client company, as well as the rights and responsibilities of each party.
- Project-based employment contracts
Project-based contracts are used when hiring employees for a specific project, arrangement, or task. The contracts should clearly define the start and end dates of being effective, the project/arrangement details, the scope of work, deliverables, payment terms, rights and obligations, and any other conditions relevant to the project.
How to hire employees in Denmark?
Companies that want to hire in Denmark must comply with all the applicable laws and regulations. This includes registering your company with the Danish authorities, finding a physical office space, and obtaining a tax identification number to open a local bank account. In addition to this, employers also need to adhere to Danish labor laws regarding employment contracts, compensations, working hours, notice and severance pay, and others.
Alternatively, a global company providing recruitment services can assist you in the process of hiring in Denmark. Through our Employer of Record solutions, Native Teams can handle your payroll, taxes, HR administration, and compliance with local labor laws. If you find it difficult to locate reliable and up-to-date information regarding hiring in Denmark and other countries, we are here to provide guidance and support.