Get the employment contract right

You must pay attention to the contents of your employment contract – especially when/if your future employer is not covered by a collective agreement. In that case, only what you agree in your contract, and the fundamental rights laid down in the Danish Holiday with Pay Act and the Danish Salaried Employees Act (if you are a salaried employee) apply. If you want to have a claim to something not agreed in the collective agreement, it must be stated in your contract.

Finansforbundet (Financial Services Union Denmark) is ready to go through your contract before you sign it.

Below you find the most important issues that an employment contract must and can cover.

Questions?

If you have any questions to your employment contract, call Legal Affairs and Negotiations on +45 32 66 13 30 or raadgivning@finansforbundet.dk.

  

The ABC’s of employment contracts

Åbn alle

Child’s sickness

Paid time off in connection with a child's sickness must be stated in the contract. It should be agreed how many days you are allowed to be absent, and whether absence is allowed only on the first day(s) of sickness, or whether absence is allowed at any time during the child's sickness.

Commencement date

The contract must state when you take up your appointment.

Description of the position

The contract must state what you have been engaged to do – i.e. title, position or description of the job.

Floating holidays / childcare days

Floating holidays, a "sixth holiday week" and childcare days must be agreed separately.

This is because these days are in addition to the days to which you are entitled under the Holiday with Pay Act.

Holiday

You are entitled to five weeks' holiday annually under the Holiday with Pay Act, which applies to the employment.

Holiday bonus

You are entitled to a holiday bonus of one percent of the pay you have earned in the previous holiday year.

Higher holiday bonuses must be agreed in the contract.

Maternity/paternity

As a salaried employee, the mother is entitled to time off with half pay from four weeks before expected childbirth to 14 weeks after childbirth.

The father is entitled to time off with government benefits for two weeks in connection with childbirth.

After the birth, the mother and the father may take 32 weeks of parental leave with a total of 32 weeks of government benefits.

A claim for full pay during maternity must appear from the contract.

Non-solicitation or non-competition clause

If the employer wants a special non-solicitation or non-competition clause to apply, this must be separately stated, possibly in the contract.

Being covered by a non-solicitation or non-competition clause is not an advantage, even if it is only valid if compensation is granted. If your employment contract contains such clause, you should try to negotiate it out of the contract or limit it as much as possible.

Other benefits

Free car, free telephone or other benefits should be stated in the contract. You will be taxed according to the current rules.

Other agreements, e.g. on home work, should also be agreed in the contract.

Overtime work

The contract should state whether overtime work is compensated by payment according to an agreed rate or by time off in lieu.

Pay

The agreed pay must be stated in the contract.

The contract should also state when pay can be renegotiated.

Pension

Pension must be stated in the contract. It must be agreed what your and the employer's pension contribution will be.

Place of work

The employer's name and address and the location of the place of work must be stated in your contract.

Professional secrecy

You may not disclose or use knowledge about the company that you have acquired during your employment.

Sickness

As a salaried employee, you are entitled to pay during sickness.

Special duties and secondary jobs

Special duties or secondary jobs should be entered into the contract.

Termination

The contract must state the notices of termination, or reference must be made to the applicable rules.

Training and education

You can agree that you can get time off for course activities/supplementary education and training, and that the employer pays the related expenses.

Travel activity

The contract should state the extent to which you can expect to work outside the usual place of work in case of travel activity.

Working hours

Working hours are usually 37 hours per week, excluding lunch break, but you can also agree that the lunch break is included in the working hours.

In Denmark, working hours are not laid down by law, and consequently you should agree on working hours in your contract.