Contracts in Denmark

Overview by

The Active Population in Figures

Main Indicators 200720062005
Labor Force 289300029040002877000
Labor Force (Annual Growth, %) ---
Rate of Activity (%) ---
Unemployment Rate (%)

Source: ICEX


Management of Human Resources


The Contract

Type of Contract
Permanent contract, fixed-term contract, training contracts.
Breach of Contracts
  • Retirement
65 years (67 in 2012).
  • Dismissals
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.

Dispute Settlement


Conciliation Process

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.
  • Procedure
Danish Arbitration also offers mediation in accordance with the Rules of Procedure for Mediation laid down by the Council in 2006.

Judicial Structures

  • Legal Framework
Consult the Danish Arbitration's website.
  • Competent Legal Body
Danish arbitration

Social Partners

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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