Labor regulations in Denmark are primarily defined by collective bargaining agreements and employment work agreements (also known as individual employment agreements).
Contract work agreements (also known as consultancy agreements) may also regulate labor in Denmark.
Replicon offers a default, configurable pay rule that allows you to easily meet Denmark’s labor law requirements.
Normal working hours
There is no legislative provision on what constitutes normal working hours. Instead, the normal hours of work are determined by an agreement. Typically, the normal hours of work is set to 37 hours a week.
Overtime is governed by individual and collective agreements. The overtime rate is typically set to 150 to 200 percent of the employee's usual rate.
Some collective agreements allow employees to choose between receiving payment and being allocated time off in lieu of payment.
Some agreements stipulate that only hours worked in excess of the normal working week can be considered overtime, while others state that overtime includes all hours worked in excess of the normal working day.
Work on Sundays is not prohibited, but an employee must be allowed one day of rest for every seven days. Work on public holidays entitles the employee to a bonus of 100 percent of their regular pay.
Employees are entitled to five weeks (25 working days) of annual leave per year. Paid leave time accrues during the calendar year (Jan 1st – Dec 31st) at a rate of 2.08 days for each month of employment. Annual leave must be taken between May 1st and April 30th, beginning the May after it was accrued.
Under the Salaried Employees Act, salaried employees are entitled to their full salary, including bonus, during sick leave.
An employee who is not covered by the Salaried Employees Act may be entitled to pay during sick leave under an individual employment agreement or under the applicable collective agreement.
An employee who has no statutory or contractual right to pay during sick leave may be entitled to sickness benefits under the Danish Act on Sickness Benefits.
Under the Danish Act on Maternity Leave and Allowance (Maternity Leave Act), a female employee has the right to be absent from work in connection with pregnancy and childbirth, from four weeks before the expected date of childbirth until 14 weeks after childbirth.
Under the Salaried Employees Act, a female employee is entitled to 50 percent of her salary during maternity leave.Individual employment or collective agreements may provide for salary during all or some of the maternity leave period.
Under the Maternity Leave Act, a male employee is entitled to two consecutive weeks' of paternity leave within 14 weeks after their child's birth
Individual employment or collective agreements may provide for salary during all or some of the paternity leave period.
Under the Maternity Leave Act, a male or female employee has the right to 32 weeks' parental leave after the 14th week of the child's birth.
Individual employment or collective agreements may provide for salary during all or some of the paternal leave period.
Family illness leave
An employee is entitled to unpaid leave when compelling family circumstances, such as illness or an accident, make the employee's immediate presence urgently necessary.
Employees may be entitled to paid leave for a family member's illness, but only as provided in an individual employment agreement or a collective agreement.