Understanding Denmark's Flexible Labor Market Framework

Denmark's labor market stands out for its unique flexibility, supported by the 'flexicurity' model—a collaborative framework involving trade unions, employer associations, and the state. This system enables straightforward hiring and dismissal processes while ensuring worker protections. The Salaried Employees Act serves as the primary legal document for white-collar workers, with most provisions mandatory during employment and termination.

Effective July 1, 2023, the Danish parliament enacted the Employment Contracts Act, replacing previous legislation and setting new standards for employment relationships formed after this date.

Standard Working Hours in Denmark

In Denmark, working hours are typically governed by collective agreements. The standard workweek for most employees is 37 hours, primarily scheduled from Monday to Friday. Special regulations apply to minors:

For 15- to 17-year-olds in compulsory education: Daily work is limited to 2 hours during school periods and 8 hours outside school periods, with weekly caps of 12 and 40 hours respectively.
For minors not in compulsory education: Work hours must not exceed those of adult workers in the same industry, capped at 8 hours daily and 40 hours weekly.

Starting July 1, 2024, employers must implement time registration systems to track daily working hours, with data retention required for five years.

Maximum Working Hours and Overtime Regulations

Danish labor law and collective agreements define maximum working hours and overtime rules. Key provisions include:

Maximum Weekly Hours

Employees aged 18 and above must not exceed an average of 48 hours per week over any four-month period, including overtime.
Night workers are limited to an average of 8 hours per 24-hour period.

Mandatory Rest Periods

Daily rest: At least 11 consecutive hours, with rare exceptions allowing reduction to 8 hours.
Weekly rest: A minimum of 24 hours, with intervals not exceeding six days between rest periods.

Night Work Provisions

Defined as work between midnight and 7:00 AM, night shifts require additional safeguards:

Average maximum hours for night workers are reduced to 48 hours over four months.
Employers must provide regular health assessments for night workers.
Workplace risk assessments are mandatory to identify potential hazards.

Overtime Compensation

Danish legislation does not mandate specific overtime pay rates. Compensation is typically outlined in employment contracts or collective agreements, which may include additional leave, wage supplements, or other benefits. Clear contractual terms are essential to avoid disputes.

Employment Contract Requirements

Employers must provide written contracts to employees working more than 8 hours weekly for at least one month. Contracts must reference applicable collective agreements and include:

Names and addresses of both parties
Work location or primary work site
Job title, description, or classification
Start date and duration (if fixed-term)
Holiday entitlements and pay during leave
Notice periods for termination
Compensation details (salary, allowances, pensions)
Standard daily/weekly working hours
References to governing collective agreements

Contract modifications require proper notice equal to the employee's termination period. Significant changes (e.g., duties, salary, location) allow employees to accept new terms or terminate employment.

Probation Period Guidelines

Probation periods in Denmark cannot exceed six months. For fixed-term contracts, probation must not surpass one-quarter of the contract duration. Employees completing probation may request more stable employment forms, with employers required to respond in writing within one month.

Notice periods during probation vary: 14 days for periods up to three months, with no notice required for one-month probationary terms.

For companies expanding into Denmark, SailGlobal offers comprehensive compliance consulting to navigate these regulations effectively and avoid legal pitfalls.

Denmark Labor Law Guide: Working Hours, Contracts & Compliance 2024