Employment 2025

DENMARK Law and Practice Contributed by: Lise Lauridsen and Sandro Ratkovic, Bech-Bruun

7.3 Dismissal for (Serious) Cause Employers are entitled to dismiss both white-collar and blue-collar employees summarily without notice for gross misconduct such as unexplained absence, theft, engaging in competition with the employer, dis - loyalty, inappropriate behaviour or insubordination. Depending on the nature of the breach or misconduct, the employer may have to issue a warning first. If a white-collar employee is dismissed for gross miscon - duct, the employer is entitled to compensation for any loss incurred as a result. However, such cases are not very common because the burden of proof is on the employer. Employees are also entitled to resign without notice in the event of a material breach of the employment contract by the employer. In all cases of summary dis - missal or resignation, the party terminating the con - tract must do so swiftly and without delay. 7.4 Termination Agreements For white-collar employees and senior executives, it is common for companies to enter into separation agree - ments that include, among other things, a full and final settlement of any claims the parties may have against each other. There are no mandatory rules governing such agreements, which means that the provisions of the Danish Contracts Act (in Danish: “ Aftaleloven ”) apply. This includes the general clause that empowers Danish courts to set aside or modify any term deemed unreasonable or excessively burdensome. However, it is very rare for such agreements to be challenged, let alone set aside, by the Danish courts. 7.5 Protected Categories of Employee Employers are prohibited from dismissing employees on the grounds of: • their gender, race, skin colour, religion or belief, political opinion, sexual orientation, national, social or ethnic origin, age or disability, or on the grounds of the employee claiming equal treatment on the • their part-time (or full-time) status, or because they have refused to move from full-time to part-time work (or vice versa), or have requested a move from full-time to part-time work (or vice versa); basis of these criteria; • requesting equal pay;

During the notice period, an employee is still bound by a duty of loyalty towards the employer. Employees are entitled to payment in lieu of notice only if they are dismissed summarily and this dismissal is not reasonably justified by the employee’s conduct, or if the employee resigns without notice as a result of a material breach of the contract by the employer. An employer must also give an employee notice, equivalent to the applicable notice of termination, if it wishes to implement material changes to the employ - ee’s terms and conditions, and these changes are, or may be, to the employee’s detriment. Probationary Periods For white-collar (salaried) employees, there is a statu - tory maximum probationary period of three months, which cannot be extended. It is for the employer to prove that the parties have agreed a probation - ary period, so such a period is normally specified in the employment contract. During the probationary period, the employer can terminate the employment relationship with at least two weeks’ notice, while the employee can terminate the relationship without notice, unless otherwise agreed in the employment contract. For other employees, the probationary period cannot exceed six months. In fixed-term employment contracts, the probationary period cannot exceed one-fourth of the duration of the employment. However, the provision does not affect the rules regarding probationary periods for salaried employees. In fixed-term employment contracts the maximum probationary period is also six months. No additional probationary period can be agreed upon in connection with the extension or renewal of a fixed- term employment contract. Collective agreements often contain provisions regu - lating this issue.

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