A Guide to Employment Contracts in Denmark

An employment contract is a binding agreement between an employer and an employee that defines the terms of the employment relationship. The contract outlines the rights and obligations of both parties. It can be written or verbal, but in Denmark, the law requires certain terms to be documented in writing if the working hours exceed three hours per week on average over four consecutive weeks and if the employment lasts longer than a month.

You might ask yourself, "What is an employment contract, and what does it mean for me to have one? What could go wrong without one?"

A written employment contract provides clarity about the working conditions and ensures that both parties agree on the terms. It also gives employees a sense of security and stability. The contract typically includes agreements about working hours, salary, vacation, notice periods, and other employment terms. It describes termination procedures and provides a clear description of salary and benefits, such as pension, health insurance, and bonuses, ensuring no misunderstandings about the agreements made at the time of hiring.

In short, an employment contract is essential for creating a secure, clear, and fair employment relationship where the rights and responsibilities of both parties are clearly defined and protected.

What is an employment contract? 

The employment contract serves as an agreement between the employer and employee. It outlines the rights and obligations of the employment relationship and helps establish a professional, clear, and stable working environment that protects the interests of both parties.

When should you have an employment contract? 

Employees are entitled to receive a written employment contract no later than seven days after starting their job, meaning the contract doesn’t necessarily have to be completed and signed before the start date.

Before signing the employment contract, employees should review it carefully to ensure it accurately reflects their role and working conditions. Key details, such as job title, responsibilities, salary, bonuses, commissions, working hours, and notice periods, should be specified.

Why Is an Employment Contract Important?

An employment contract is significant for several reasons:

• It reduces the risk of misunderstandings and conflicts.

• It can enhance employees’ sense of engagement and loyalty, demonstrating that the employer is professional and committed to the agreed terms.

• It provides legal protection for employers in disputes and serves as documentation of the agreed terms.

• With clear rules and procedures in place, employers can manage staff more effectively and ensure consistent treatment.

• Employers can use the contract to define tasks, working hours, salary, and other working conditions.

An employment contract may also include clauses on confidentiality, non-compete agreements, and customer protection, safeguarding the company’s trade secrets and client relationships during and after employment. Since the law requires certain terms to be documented in writing, this ensures compliance and prevents legal sanctions or fines.

What should be included in an employment contract? 

Below is a breakdown of what an employment contract between an employer and employee should include:

• Job Title and Responsibilities: A description of the specific tasks expected of the employee and their title/position.

• Working Hours: Expected working hours, including weekly hours and any agreements on overtime and allowances.

• Salary: Details of base salary, potential bonuses, commissions, and other financial benefits.

• Work Location: The location where the work is expected to be performed, which may be a fixed site or multiple locations.

• Vacation: Information about vacation entitlements and other types of leave.

• Notice Periods: Rules for terminating the employment relationship for both the employer and employee.

• Sick Leave: Rules and procedures for handling sick leave.

• Confidentiality and Loyalty Clauses: Requirements for handling confidential information and potential non-compete clauses.

• Pension Schemes: Information about pension contributions and arrangements.

• Other Benefits: Additional perks provided by the employer, such as health insurance or training opportunities.

How long should you keep an employment contract? 

In Denmark, employers must retain employment contracts for a certain period to comply with legal requirements and ensure documentation in case of disputes. Employees should keep their contracts for the duration of their employment to document the agreed terms.

General Guidelines for Keeping Employment Contracts:

• Active Contracts: Employers should retain contracts for current employees as long as the employment relationship lasts. These documents should be easily accessible to both parties.

• After Termination: Following the termination of employment, the contract should be kept for at least five years, as payroll and employment records must generally be retained for this period under bookkeeping and tax regulations.

• Legal Disputes: If there is an ongoing or potential legal dispute, the contract may need to be retained longer as evidence.

• Collective Agreements: Specific rules for retaining contracts may apply under collective agreements.

• Digital Copies: Keeping digital copies of employment contracts in a secure format is advisable for easier access and storage.

• Security and Confidentiality: Employers must store contracts securely to protect employees’ personal information, using measures like encryption or controlled access for digital files.

Is an employment contract mandatory? 

In Denmark, an employment contract is mandatory under certain conditions. According to the Employment Contracts Act, the employer must provide written information about the essential terms of employment if:

• The employment relationship lasts longer than a month.

• The average working hours exceed eight hours per week.

If a conflict arises between an employer and an employee, the employment contract serves as crucial documentation during negotiations or legal proceedings. Drafting the contract may also provide employees with an opportunity to influence their working conditions while clarifying mutual expectations.

How does one terminate or rescind an employment contract? 

Termination or withdrawal from an employment contract can occur under different circumstances and have various legal consequences. Below is an explanation of both terms:

Termination of an Employment Contract

Terminating an employment contract means that the employment relationship ends immediately—typically due to a serious breach of contract by one of the parties. Termination is a severe action and is only used in specific cases.

Employer:

• Reasons for Termination: The employer may terminate the contract if the employee has committed serious offenses such as theft, violence, gross disloyalty, or other significant violations of company rules or employment terms.

• Procedure: The employer must generally be able to prove the employee’s gross misconduct and should follow a reasonable procedure, which may include warnings, depending on the nature of the offense.

Employee:

• Reasons for Termination: The employee can terminate the contract if the employer seriously breaches their obligations—such as failing to pay wages, violating workplace safety regulations, or similar issues.

• Procedure: The employee is usually required to notify the employer of the breach and provide an opportunity to correct it unless the breach is so severe that it would be unreasonable to expect this.

Withdrawal from an Employment Contract

Withdrawal from an employment contract typically refers to a situation where one party wants to back out of the contract before the employment begins or shortly after it has started. This often occurs within a probationary period or a pre-agreed timeframe.

Before the Start of Employment:

• For the Employer: If the employer wants to withdraw from the contract before the employment begins, the process depends on what is stated in the contract. Some contracts specify that either party can withdraw before a certain date without penalties.

• For the Employee: If the employee wishes to withdraw before the start of employment, it will also depend on the contract. Often, this can happen without major consequences, especially if there is a probationary clause.

During the Probationary Period:

• For the Employer: If there is a probationary clause (typically 3 months), the employer can usually terminate the contract with a shorter notice period, for example, 14 days, without needing to provide a specific reason—unless otherwise agreed.

• For the Employee: The employee can also withdraw from employment during the probationary period with the shorter notice period specified in the contract.

Notice Periods and Procedures:

• Standard Termination: Outside of the probationary period, termination typically follows a notice period, which depends on the terms of the contract and applicable laws. In Denmark, notice periods are often regulated by the Danish Salaried Employees Act (Funktionærloven) or collective agreements.

• Documentation and Communication: Termination or withdrawal should always be documented in writing, and both parties should be clearly and timely informed.

Legal Advice:

In the situations mentioned above, it is important to seek legal advice, as there may be complex legal and practical aspects to consider. Acting correctly can help prevent potential disputes and legal issues.

If an employer fails to provide an employment contract, the employee can take the matter to the Labour Court (Arbejdsretten) or civil courts. The employer may then be required to pay compensation to the employee. The compensation amount depends on the severity of the breach and can range from minor sums up to a maximum of 13 weeks’ salary.

Just Eat Employment Contracts

At Just Eat Denmark, couriers are always employed on permanent contracts.

The employment contract specifies the number of hours we expect you to work, expressed as weekly hours. While we consider your preferences for working hours, the actual number depends on availability.

Just Eat offers contracts with:

• A minimum of 8 hours per week

• A minimum of 16 hours per week

• A minimum of 24 hours per week with fixed shifts

• A minimum of 32 hours per week with fixed shifts

For 8- and 16-hour contracts, shifts are scheduled three weeks in advance. For 24- and 32-hour contracts, shifts are scheduled five weeks in advance. You may, of course, take additional shifts beyond your contract.

Your probation period lasts 14 days, during which you or we can terminate the agreement with one day's notice. After 14 days, the notice period becomes one week, effective at the end of the current workweek. Additional rules may apply after six and 12 months of employment.

We hope this overview of employment contracts clarifies what you can expect from us and what we expect from you as an employee. If you’re considering joining Just Eat, we look forward to your application!

The information included on this page is only intended for general information purposes and does not relate specifically to work at just-eat.dk. Although just-eat.dk. makes every effort to keep the content on this page up to date, the information is offered without any guarantee or claim of accuracy. We therefore recommend that you consult official government websites or seek professional advice before acting.