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Employee rights in the company

Do you have an employee in your company, there are a number of requirements that you must follow to comply with the Danish law.

It is not easy to hire your first employee, but others have done before you, so you will find a way as well.

Rules in Denmark

If a Danish employer wishes to hire employees from abroad, it is necessary to distinguish between:

  • Nordic nationals who can freely to move to Denmark without residence or work permits.
  • Nationals from the EU/EEA, who will need residence or work permits only if they stay more than 3 months in the country, in which case such permits are obtained rather easily.
  • Nationals from the countries that acceded to the EU after May 2004, who are subject to a special application procedure.
  • Other nationals will need a residence and work permits.

Labour legislation

Denmark has that tradition that employees have certain minimum rights. What you as an employee believes are proper working conditions, can be interpreted as a new employer as a lot of hassle when hiring employees.

Fortunately, there are companies that can help you to comply with labor standards if you think the below looks cluttered.

Labour-market legislation says:

You must register as an employer

When you hire employees in your company, you must register as an employer. You must manage the payment of salaries, report income tax to and Labor market contributions to SKAT (tax authorities) from the salary you pay to your employee. You register as an employer at Start virksomhed - the same place you registered your business.

You must prepare an employment contract

Your new employee is entitled to an employment contract. Your employee should have it within a month after he / she is employed.
If your employee works more than 8 hours a week, he / she is entitled to receive an employment contract from you.

The employment contract must include basic information and very concrete descriptions of a place of work, salary, holiday with pay, etc.

You must take out insurance against accidents at work

You must take out employer insurance to ensure your employee financially if a work accident happens.
You choose yourself which private insurance company you want to take out the insurance in.

The price of insurance depends on the risk of accidents on the company. Contact your current insurance company and check what they can offer.

You must pay to ATP

You must, as an employer make contributions to your employee ATP - your employee´s lifetime pension. You have to pay 2/3 of the ATP contribution. You must, as an employer calculate and pay ATP contribution.

You must pay to the Labour Market Occupational Diseases

You must pay to the Labour Market Fund (AES) to ensure your employee financially if gets an occupational disease.
You are automatically enrolled to the Labour Market Occupational Diseases. It happens when you pay to ATP.

You must pay to a maternity leave scheme

You must, as an employer pay to a maternity leave scheme. You pay a fixed amount per. employee - regardless of age and gender. All employers must pay for a maternity leave scheme. It must be to maternity scheme or another approved maternity leave scheme.

You must pay to FerieKonto

You must pay your employee´s vacation pay to FerieKonto. Holiday pay amounts to 12.5% of your employee´s gross salary. Your employee always earns 2.08 days of vacation per month. Your employee is entitled to either full paid 6 weeks holiday or money to pay the holiday himself.

And more ...

You are also required to plan working hours so your employee gets a rest. Do not ask for pregnancy when hiring and you must not put the emphasis on race, religion and age.

You MUST have help

You can handle the above self. However, it is almost doomed to fail, and your time is better spent on development and time to sell more of your products.

Get external help to handle your payroll for you. Make a Google search on "lønsystemer" and find the agency that suits you.

Also, your accountant can help you manage your employees.

Read more about the rules of employment – in Danish - on the website Ansæt selv or purchase the book Bogen om ansættelsesforholdet – udfordringer, regler og afvikling (The Book of employment - the challenges, rules and settlement.)

Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.
- Jack Welch,


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