Contracts in Denmark
The Active Population in Figures
|Labor Force (Annual Growth, %)||-||-||-|
|Rate of Activity (%)||-||-||-|
|Unemployment Rate (%)||2.4||3.5||4.7|
Management of Human Resources
- Type of Contract
- Permanent contract, fixed-term contract, training contracts.
- Breach of Contracts
- 65 years (67 in 2012).
- According to Section 2b of the Salaried Employees’ Act the employer
may be obliged to pay a compensation for unfair dismissal, if the
employee dismissed has been employed by the employer for at least 1 year, and if the dismissal is not deemed reasonably justified in the conduct of the employee and/or the circumstances of the company.
Any compensation as a result of unfair dismissal will be based on the employee’s length of employment and an estimate of the circumstances of the case, and will generally represent a maximum amount equal to the salary paid to the salaried employee in half of the period of notice. The compensation may amount to up to 6 months’ salary.
- Cases of Dispute
- According to Article 2 of its Statutes, the object of Danish Arbitration is to promote arbitration in accordance with the Rules of Arbitration Procedure laid down by its Council through arbitral tribunals appointed by Danish Arbitration on a case-by-case basis.
The Rules of Arbitration Procedure were revised in 2004 to bring them in line with general international standards, and again in 2006 to bring the Rules in line with the Arbitration Act adopted in Denmark in 2005. The Rules of Arbitration Procedure were changed most recently in October 2007.
- Legal Framework
- Consult the Danish Arbitration's website.
- Danish Arbitration also offers mediation in accordance with the Rules of Procedure for Mediation laid down by the Council in 2006.
- Social Dialogue and Involvement of Social Partners
- Many employers are members of the Danish Employers’ Confederation (Dansk Arbejdsgiverforening/DA) or one of the special employers’ associations (e.g. the Financial Sector or Agriculture). Employees are often members of the relevant trade union (Metal Workers, Commerce and Office etc), although most of these unions are also members of the ”umbrella” employee confederation, The Danish Federation of Trade Unions (Landsorganisationen/LO), a service organisation that undertakes to negotiate or co-ordinate various matters common to all trade unions. The labor market is thus to a very large degree regulated by collective agreements.
- Unionization Rate
- Regulation Bodies
Danish Employers' Confederation (DA)
National Labor Market Authority
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