Employment law

Discover how to navigate and succeed in the one-of-a-kind Danish labour market model as a foreign company.

International & Danish Employments

Unlike most European countries, the Danish labour market is built on collective agreements between the representative organizations of employers and the trade unions. A collective agreement regulates the salary and working conditions that apply to workers in a specific company or industry.

More than 70 % of all employees in the private sector are governed by collective bargaining agreements. The remaining 30 % are regulated by various other legislation that leaves more room for contractual freedom between the employer and employee than under the collective bargaining agreements. It is important to know which of these categories your business falls within.

The Danish labour market is one of the most flexible and liberal labour markets in Europe, if not the most liberal and flexible. 

Nevertheless, it is our experience that there are some challenges for foreign companies accessing the Danish Market, when it comes to understanding how the Danish labour market functions, in terms of employment policy as well as salary and working conditions.

Non-compliance with collective agreements can be met with union actions and/or substantial financial sanctions. A bad start for a new company in Denmark can have a negative impact on the relationship to the employees as well as to the trade unions and local authorities.

We have great expertise in Danish Employment law. Our experts make it easy for you and your company to access the Danish labour market. We help you understand your rights and obligations as an employer, and how to avoid the pitfalls. 

We can help you achieve a successful entry to the Danish Market.

Our expertise includes:

  • Hiring & firing
  • Conditions of employment
  • Work- and residence permit
  • Payroll legislation
  • Collective agreements
  • Employees’ Rights in the event of Transfers of Undertakings (M&A)
  • Share option programmes
  • Restrictive covenants
  • Compliance with non-discrimination legislation

Learn about Ret&Raad International here

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