The Danish Law Areas Related to Employment

The 31 key pieces of legislation in Denmark, laws and frames that are directly or indirectly related to the labour market in Denmark.

Last updated: June 8, 2025 at 16:35 pm

The main Danish employment law areas, and frames. Here you can see the 31 most relevant ones, sorted alphabetically:

Danish Employment Contracts Act (Ansættelsesbevisloven)
This law requires all employers to provide a written contract to any employee working more than three hours per week on average over a four-week period. The contract must be delivered within seven days of employment start and must include all essential terms: job title, description, salary (with supplements), working hours, start date, duration (if fixed-term), notice periods, probation, pension, paid leave, and any relevant collective agreements. The 2023 update expanded coverage to more employees and introduced requirements for transparency around training rights and requests for more predictable working conditions. Non-compliance can lead to employee compensation and administrative penalties.
Link: https://lifeindenmark.borger.dk/working/work-rights/working-conditions/employment-contracts

Danish Working Environment Act (Arbejdsmiljøloven)
This foundational law sets the framework for occupational health and safety in Denmark. Employers must ensure safe and healthy working conditions, conduct risk assessments, provide training, and prevent physical and psychological hazards. Employees participate in safety committees in larger workplaces. The Danish Working Environment Authority enforces the law through inspections, fines, and shutdowns. The Act is regularly updated to address new risks such as digitalisation and psychosocial stress.
Link: https://at.dk/en/legislation/

Danish Holiday Act (Ferieloven)
Guarantees all employees five weeks of paid annual leave, accrued at 2.08 days per month under the concurrent holiday system. Holiday pay is 12.5% of annual earnings and managed via FerieKonto. The law covers scheduling, carry-over during illness or parental leave, and compensation upon job termination. Employers must inform workers of their rights and facilitate leave planning.
Link: https://lifeindenmark.borger.dk/coming-to-denmark/working-in-denmark/holiday-in-denmark

Danish Salaried Employees Act (Funktionærloven)
Protects white-collar workers with minimum notice periods (1–6 months), severance pay, full sick pay for up to 120 days per year, and enhanced parental leave. Dismissals require objective justification. The law covers probation, non-compete clauses, and expense reimbursements, and is a benchmark for collective agreements.
Link: https://www.just-eat.dk/en/courier/the-inside-track/work-tips-tricks/employment-contracts-act-in-denmark

Equal Treatment Act (Ligebehandlingsloven)
This law prohibits gender discrimination in all aspects of employment, including hiring, pay, promotion, and dismissal. Special protections apply to pregnant employees and those on parental leave. Employers must prevent sexual harassment and establish clear reporting procedures. Complaints can lead to compensation and corrective orders.
Link: https://workplacedenmark.dk/working-conditions/equality-of-opportunity-in-the-labour-market

Equal Pay Act (Ligelønsloven)
Requires equal pay for equal work or work of equal value, regardless of gender. Employers must justify pay differences with objective criteria. Employees can request salary data, and larger firms must share gender-segregated pay statistics. The law allows collective claims and class actions, shifting the burden of proof to employers.
Link: https://workplacedenmark.dk/working-conditions/equality-of-opportunity-in-the-labour-market

Act on Prohibition of Discrimination on the Labour Market (Forskelsbehandlingsloven)
Bans discrimination based on age, disability, race, religion, sexual orientation, or ethnicity in all aspects of employment. Employers must accommodate disabilities and prevent harassment. Employees can seek remedies via the Board of Equal Treatment or courts.
Link: https://workplacedenmark.dk/working-conditions/prohibition-against-discrimination

Act on Collective Redundancies (Lov om kollektive afskedigelser)
Implements EU rules for mass layoffs, requiring employers to consult employee representatives and notify authorities before large-scale redundancies. Employers must disclose reasons, affected roles, selection criteria, and mitigation measures. Non-compliance can result in compensation and fines.
Link: https://www.retsinformation.dk/eli/lta/2012/291

Act on Protection against Dismissal due to Organisational Matters (Foreningsfrihedsloven)
Protects employees from dismissal or discrimination due to union membership or non-membership, or participation in lawful industrial action. Compensation and reinstatement are available for violations. This law is central to Denmark’s strong tradition of social dialogue and collective bargaining.
Link: https://www.retsinformation.dk/eli/lta/2017/100

Act on the Employees’ Guarantee Fund (Lov om Lønmodtagernes Garantifond)
Ensures employees receive owed wages, holiday pay, and severance if their employer becomes insolvent. The fund processes claims quickly, providing a critical safety net for workers, and then seeks reimbursement from the employer’s estate.
Link: https://www.loenmodtagernesgarantifond.dk/english

Act on the Legal Position of Employees in the Event of the Transfer of the Enterprise (Virksomhedsoverdragelsesloven)
This law protects employees’ rights during business transfers, such as mergers, acquisitions, or outsourcing. Employees automatically transfer to the new employer with all their existing terms and conditions, including pay, benefits, and seniority. Dismissals solely due to the transfer are prohibited, and both old and new employers must inform and consult employees about the transfer and its impact. If an employee is dismissed in connection with a transfer, they may be entitled to reinstatement or compensation. The law ensures legal certainty and stability for employees facing organisational change and is enforced by the courts and labour market authorities.
Link: https://www.retsinformation.dk/eli/lta/2019/711

Act on Job Clauses (Lov om ansættelsesklausuler)
This law regulates the use of restrictive covenants in employment contracts, such as non-compete, non-solicitation, and customer clauses. It sets strict limits on the duration and scope of such clauses, typically limiting non-compete clauses to a maximum of 12 months after employment ends and requiring substantial financial compensation for the employee during this period. The law also prohibits the use of multiple overlapping clauses unless justified and compensated. Employees must be informed in writing about any restrictive clauses before signing, and unjustified or excessively broad clauses can be challenged in court. The Act balances employer interests in protecting business assets with employees’ rights to seek new employment.
Link: https://www.retsinformation.dk/eli/lta/2015/1565

Act on Employers’ Duty to Inform the Employee (Lov om arbejdsgiverens oplysningspligt)
This law requires employers to provide new employees with written information about essential terms of employment within seven days of starting work. Required details include job title, salary, working hours, holiday entitlement, notice periods, pension arrangements, and any relevant collective agreements. The law was updated in 2023 to expand coverage and require more detailed information, especially for employees with irregular schedules. Employers must also inform about training rights, social security, and procedures for requesting more predictable working conditions. Non-compliance can lead to compensation and administrative penalties.
Link: https://www.retsinformation.dk/eli/lta/2023/809

Act on Fixed-Term Work (Lov om tidsbegrænset ansættelse)
This law ensures that fixed-term employees are not treated less favourably than permanent staff regarding pay, benefits, and working conditions. It sets strict limits on the repeated use of fixed-term contracts—generally, after four years of successive contracts, the employment is presumed permanent unless justified otherwise. Employers must inform fixed-term employees about permanent job openings and provide equal access to training and workplace activities. Violations can result in compensation or conversion to permanent status, and the law is particularly important in sectors with high levels of temporary employment.
Link: https://www.retsinformation.dk/eli/lta/2019/907

Act on Part-Time Work (Lov om deltidsarbejde)
This law guarantees that part-time employees receive proportional pay, benefits, and access to training and promotion compared to full-time staff. Any differences in treatment must be objectively justified. The law encourages voluntary part-time arrangements and protects employees from being forced into part-time work against their will. It is especially relevant in sectors with flexible or reduced hours, supporting work-life balance and equal treatment. Disputes can be resolved through the Labour Market Authority or courts, and violations may result in compensation.
Link: https://www.retsinformation.dk/eli/lta/2019/896

Act on Posting of Workers (Lov om udstationering af lønmodtagere)
This law implements EU rules to ensure that foreign workers temporarily posted to Denmark receive Danish minimum standards for pay, working hours, holidays, and health and safety. Employers must register posted workers, comply with Danish accommodation and identification requirements, and ensure joint liability with Danish client companies. The law is enforced by the Working Environment Authority and Labour Market Authority, with strict penalties for non-compliance. It is crucial for preventing social dumping and protecting both local and posted workers in a globalised labour market.
Link: https://workplacedenmark.dk/regulations-on-posting/your-rights-as-a-posted-worker

Act on Use of Health Data (Lov om brug af helbredsoplysninger)
This law strictly limits when employers can request or process employee health information. Health data may only be requested if directly relevant to the job or required by law. Employers cannot demand general medical records or require medical exams without a clear job-related reason. The law protects against discrimination based on health status and requires compliance with the Danish Data Protection Act and GDPR. Violations can result in fines and compensation.
Link: https://www.retsinformation.dk/eli/lta/2018/646

Temporary Agency Work Act (Lov om vikararbejde)
This law ensures that temporary agency workers receive the same pay, working conditions, and access to facilities as permanent employees in the same workplace. Both the agency and the user company are responsible for compliance. Agency workers must be informed of vacancies and given equal access to training and benefits. The law regulates the triangular relationship between agency, worker, and user company, and violations can result in compensation and penalties.
Link: https://www.retsinformation.dk/eli/lta/2013/595

Danish Working Hours Act (Arbejdstidsloven)
The Working Hours Act sets a maximum average working week of 48 hours (including overtime) over a four-month period, mandates minimum daily and weekly rest periods, and regulates night work. Employers must keep records of working hours and consult with employee representatives on working time arrangements. The law is enforced by the Working Environment Authority and is designed to prevent overwork, promote work-life balance, and safeguard employee health.
Link: https://www.retsinformation.dk/eli/lta/2000/896

Danish Data Protection Act (Databeskyttelsesloven)
This law implements the EU General Data Protection Regulation (GDPR) in Denmark, with additional rules for employment. Employers must have a clear legal basis for processing employee data, inform employees about data collection and usage, and protect sensitive data such as health or union membership. The Act requires transparency, proportionality, and security in all workplace data processing, and grants employees rights to access, correct, or delete their data. The Danish Data Protection Agency enforces the law and can issue fines for violations.
Link: https://www.datatilsynet.dk/media/7753/danish-data-protection-act.pdf

Sickness Benefits Act (Sygedagpengeloven)
The Sickness Benefits Act is a core part of Denmark’s social security system, providing financial protection for employees who are unable to work due to illness or injury. Employees are entitled to sickness benefits from the first day of absence, with the employer typically covering the initial 30 days (the employer period), after which the municipality takes over payments. The Act outlines detailed eligibility criteria, including requirements for timely medical documentation and ongoing communication between employee, employer, and local authorities. It also provides for partial sick leave, allowing employees to work reduced hours while recovering, and supports rehabilitation and return-to-work programs. Safeguards are in place to prevent abuse, with regular assessments of health status and ability to work. Employers must report sickness absences promptly, and employees must cooperate with medical assessments. The law is enforced by municipalities and the Danish Labour Market Authority, and disputes can be resolved through administrative appeals or the courts.
Link: https://www.borger.dk/arbejde-dagpenge-ferie/Sygdom-og-barsel/Soeg-om-sygedagpenge

Act on Benefits in the Event of Sickness or Maternity (Barselsloven)
This law provides comprehensive protections for employees during periods of illness, pregnancy, childbirth, and adoption. Mothers are entitled to at least 14 weeks of paid maternity leave, fathers or co-parents to at least 10 days of paternity leave, and both parents to additional shared parental leave, which can extend the total leave period up to 52 weeks. Benefits are paid at a rate equivalent to unemployment benefits, and many collective agreements provide wage supplements. The law also covers adoption leave and prohibits dismissal during pregnancy and maternity/paternity leave. Employers must inform employees of their rights and support them in claiming benefits. The Act sets out procedures for applying for leave and benefits, documentation requirements, and coordination between parents. It is enforced by the Danish Labour Market Authority and municipalities, with strict penalties for non-compliance.
Link: https://www.borger.dk/arbejde-dagpenge-ferie/Sygdom-og-barsel/Soeg-om-barselsdagpenge

Act on Employers’ and Employees’ Contributions (Lov om arbejdsgiveres og lønmodtageres bidrag)
This law governs the mandatory contributions that employers and employees must make to Denmark’s social security and labour market funds, which finance unemployment insurance, pensions, parental leave, and other welfare benefits. The law sets out the rates, collection procedures, and reporting requirements for these contributions, ensuring the system is fair, transparent, and sustainable. Employers are responsible for withholding and remitting contributions on behalf of their employees, and both parties share the cost of funding the welfare state. The Act includes provisions for exemptions, refunds, and adjustments in special circumstances, such as international assignments or part-time work. It is enforced by the Danish Tax Agency and the Labour Market Authority, with strict penalties for non-compliance.
Link: https://www.retsinformation.dk/eli/lta/2022/1189

Danish Holiday Pay Act (Feriebetalingsloven)
The Holiday Pay Act complements the main Holiday Act by regulating the accrual, payment, and administration of holiday pay. Employees earn holiday pay equivalent to 12.5% of their annual earnings, managed through the FerieKonto system or other approved holiday funds. The Act sets out rules for calculation, payment, and transfer of holiday pay between employers, ensuring access to entitlements even if employees change jobs or their employer becomes insolvent. The law also covers special situations such as parental leave, illness, and termination of employment. Disputes over holiday pay can be resolved through administrative appeals or the courts, and the law is enforced by the Danish Labour Market Authority.
Link: https://www.feriepenge.dk/

Act on Sexual Harassment (Lov om seksuel chikane)
The Act on Sexual Harassment obligates employers to take proactive steps to prevent, address, and remedy all forms of sexual harassment in the workplace. Sexual harassment is broadly defined and includes unwanted physical, verbal, or non-verbal conduct of a sexual nature that violates a person’s dignity or creates a hostile environment. Employers must establish clear anti-harassment policies, provide staff training, and create accessible procedures for reporting and investigating complaints. Victims have the right to file complaints internally, with their union, or with public authorities, and are protected from retaliation. The law provides for compensation to victims and holds employers liable if they fail to act on known issues or do not take adequate preventive measures. Recent updates include expanded protections for digital harassment and increased penalties for non-compliance.
Link: https://www.retsinformation.dk/eli/lta/2023/456

Act on the Right of Association (Foreningsfrihedsloven)
The Act on the Right of Association is a foundational law in Denmark’s labour market, guaranteeing every employee the freedom to join or not join a trade union or employer association without fear of discrimination or reprisal. This right is protected at all stages of employment, from hiring to termination, and applies regardless of job type, contract length, or sector. Employers are prohibited from making union membership a condition of employment, retaliating against employees for union activity, or favouring employees based on their association status. The law also protects the right to participate in union activities, seek union representation in disputes, and change union affiliation freely. Violations can result in compensation, reinstatement, and other remedies, and cases are often supported by unions or brought before the courts or labour boards. The Act is a pillar of Denmark’s “Danish Model,” which relies on strong social dialogue and collective bargaining to set working conditions, and it underpins the country’s reputation for high levels of worker participation and industrial peace.
Link: https://www.retsinformation.dk/eli/lta/2017/100

Danish Act on Working Time for Mobile Workers (Lov om arbejdstid for mobile lønmodtagere)
This law addresses the unique challenges faced by employees who do not have a fixed workplace, such as those in the transport, shipping, and logistics sectors. It implements specific EU regulations and sets strict limits on driving hours, rest periods, and on-call time to prevent fatigue and ensure safety. For example, drivers of commercial vehicles are subject to maximum daily and weekly driving times, mandatory rest breaks, and minimum periods of uninterrupted rest between shifts. The law also requires employers to maintain accurate records of working and driving hours and to provide workers with information about their rights and obligations. Special provisions apply to night work and to cross-border operations, ensuring that Danish standards are maintained even when employees work internationally. The Act is enforced by the Danish Working Environment Authority and transport authorities, who conduct inspections and can impose fines or suspend operations for violations. By protecting mobile workers, the law contributes to road safety, public health, and fair competition in the transport sector.
Link: https://www.retsinformation.dk/eli/lta/2005/395

Conciliation in Industrial Disputes Act (Forligsmandsloven)
The Conciliation in Industrial Disputes Act is a cornerstone of Denmark’s approach to industrial relations, providing a structured process for mediation and conciliation in collective bargaining disputes. When negotiations between unions and employers reach an impasse, the Official Conciliator (Forligsmanden) intervenes as a neutral mediator to facilitate dialogue and help the parties reach a mutually acceptable agreement. The Act outlines the procedures for initiating mediation, the powers of the Conciliator to propose settlements, extend negotiation deadlines, and postpone industrial action while talks are ongoing. Both parties are required to participate in good faith and to provide the Conciliator with all relevant information. If a settlement is reached, it becomes binding and is incorporated into the relevant collective agreement. The law is enforced by the Danish Labour Market Authority and is credited with Denmark’s low rate of industrial conflict and high level of cooperation between employers and unions. The Conciliation Act is essential for maintaining labour market stability, preventing disruptive strikes or lockouts, and supporting the Danish Model’s reliance on social dialogue and negotiated solutions.
Link: https://www.retsinformation.dk/eli/lta/2015/1120

Danish Labour Court Act (Arbejdsretsloven)
The Danish Labour Court Act establishes the specialised labour court (Arbejdsretten), which is responsible for resolving disputes related to collective agreements, industrial action, and breaches of labour law. The Labour Court is composed of professional judges and representatives from both employer and employee organisations, ensuring balanced and expert adjudication of complex industrial relations issues. The court’s jurisdiction includes cases involving strikes, lockouts, interpretation and enforcement of collective agreements, and claims for damages arising from industrial disputes. Its decisions are binding and enforceable, and the court has the authority to order remedies such as compensation, reinstatement, or the cessation of unlawful industrial action. The Labour Court plays a crucial role in upholding the integrity of Denmark’s collective bargaining system and maintaining industrial peace. Its rulings are often referenced in negotiations and serve as important precedents for future cases.
Link: https://arbejdsretten.dk/labour-court

Danish Holiday Pay Act (Feriebetalingsloven)
The Danish Holiday Pay Act works in tandem with the main Holiday Act to regulate the accrual, payment, and administration of holiday pay. Under this law, employees earn holiday pay equivalent to 12.5% of their annual earnings, which is managed through the FerieKonto system or other approved holiday funds. The Act sets out rules for how holiday pay is calculated, paid out, and transferred between employers, ensuring that employees can access their entitlements even if they change jobs or their employer becomes insolvent. The law also covers special situations such as parental leave, illness, and termination of employment, providing clear guidance on how holiday pay should be handled in each case. Disputes over holiday pay can be resolved through administrative appeals or the courts, and the law is enforced by the Danish Labour Market Authority. The Holiday Pay Act is a key part of Denmark’s commitment to work-life balance and financial security for employees, ensuring that everyone has the means to take paid leave and enjoy time away from work.
Link: https://www.feriepenge.dk/