The Danish Salaried Employees Act (Funktionærloven) outlines a range of rights and responsibilities for both employers and employees, ensuring clear rights and protections for salaried employees in the Danish labor market.
What is a salaried employee, and what is the Danish Salaried Employees Act?
The term "salaried employee" originates from Danish labor law and is typically used to distinguish salaried employees from other groups performing manual or physical labor. Examples of salaried positions include office assistants, secretaries, financial staff, salespeople, engineers, and IT specialists.
In Denmark, the working conditions of salaried employees are regulated by the Salaried Employees Act. Being employed under this act provides various benefits, contributing to both economic security and workplace well-being. The act ensures that salaried employees have clear rights and protections, making such employment attractive.
The act guarantees orderly and fair working conditions. Some of its most significant elements include rules for termination, entitlement to full salary during illness and maternity leave, and paid vacation. Salaried employees often have clear agreements regarding working hours and overtime, which may also be governed by individual employment contracts or collective agreements. This ensures reasonable working hours and compensates overtime through either additional pay or time off.
Overall, the Salaried Employees Act is a vital piece of legislation that ensures fair and reasonable employment conditions. Employers are also required to maintain a healthy and safe work environment, which may include ergonomic workstations, psychosocial well-being, and general consideration for employees' welfare.
The law provides stability and security in employment relationships, benefiting both employees and employers.
At Just Eat, employees work under the Salaried Employees Act, which is why, as a minimum, you must work eight hours per week to be employed as a salaried employee. By employing under the Salaried Employees Act and adhering to a collective agreement, we demonstrate our commitment to compliance and ensure fair working conditions for our employees. This also helps minimize legal complications and potential conflicts.
When does one become a salaried employee, and what significance does it have for an employee to be salaried?
Being employed as a salaried employee in Denmark comes with several advantages secured by the Danish Salaried Employees Act. These include:
1. Job Security
Notice periods: Salaried employees have longer notice periods than other employees, providing greater job security. These periods increase with the length of employment.
Protection during illness: An employer can terminate a salaried employee with one month's notice during illness if the employee has been sick for more than 120 days within a 12-month period. This rule protects employees from immediate dismissal while also providing employers some flexibility.
2. Salary During Illness
Economic security: Salaried employees are entitled to full pay during illness, offering financial stability in challenging situations. Employers cover the first 30 days of illness, after which they may claim reimbursement from the municipality.
Conditions: To be eligible for paid sick leave, employees must have been employed for at least eight weeks and worked at least 74 hours during that period.
3. Vacation Benefits
Paid vacation: Salaried employees are entitled to paid vacation in accordance with the Danish Holiday Act, which allows five weeks of vacation (25 days). Employees without sufficient accrued paid vacation may still take unpaid vacation.
Vacation pay upon termination: If an employee resigns or is terminated, the employer must pay any accrued vacation pay.
Accrual: Employees earn 2.08 vacation days per month or 0.07 days per day, regardless of full-time or part-time status.
Holiday allowance: In addition to paid vacation, employees are entitled to a 1% holiday allowance, typically paid annually.
4. Maternity and Parental Leave
Entitlement: Salaried employees are entitled to maternity and parental leave.
Mothers: The act guarantees female employees leave with pay from four weeks before the expected due date and up to nine weeks after birth. Collective agreements may extend this period or ensure full pay during maternity leave.
Fathers and co-parents: Fathers and co-parents are entitled to two weeks of paternity leave after the birth and nine weeks of parental leave.
Parental leave: Parents are entitled to 32 weeks of parental leave, with nine weeks specifically earmarked for each parent.
5. Severance Pay
Minimum notice periods for salaried employees vary based on employment length:
One month during the first five months of employment.
Three months after six months of employment.
Four months after three years of employment.
Five months after six years of employment.
Six months after nine years of employment.
6. Working Hours and Overtime
Salaried employees often have clear agreements on working hours and overtime, which can be outlined in individual contracts or collective agreements. This ensures reasonable working hours and fair compensation for overtime, either through additional pay or time off.
7. Continuing Education and Training
Many salaried employees have access to professional development and training opportunities to enhance their skills and career prospects.
8. Non-Compete and Non-Solicitation Clauses
The Salaried Employees Act includes provisions for non-compete and non-solicitation clauses to protect employees' rights during job transitions. These clauses must meet specific conditions and are typically time-limited.
9. Pension
Many salaried employees are covered by pension schemes as part of their employment contracts, securing financial stability during retirement.
10. Workplace Culture and Environment
Employers must ensure a healthy and safe work environment, which may include ergonomic workplaces, attention to psychosocial well-being, and general care for employees' welfare.
When is one considered a salaried employee?
As previously mentioned, salaried employees primarily work with administrative, office-related, technical, or intellectual tasks within a company or organization. This includes positions in customer service, sales, marketing, IT support, or management. Their work often involves the use of specific skills and expertise.
An employer cannot hire a salaried employee under conditions worse than those stated in the Danish Salaried Employees Act (Funktionærloven). However, they can offer better terms than the law requires.
A company with a collective agreement can grant employees salaried employee status, even if their job does not fully meet the legal criteria for a salaried position.
