Find your employer of record in Denmark

Above all, Danish employees can get the following common employment benefits:

• Monthly health insurance contributions.
• Pension schemes.
• Transportation allowance.
• Mobile phone allowance.

In essence, European Union Countries like Denmark offer several options regarding employers of foreign nationals. Furthermore, ex-pats from countries of the Schengen Area can reside and work in Denmark. However, it will require you to apply for a registration certificate if you plan to stay for more than three months.

On the contrary, foreign nationals from outside the Schengen Area must apply for a residence and work permit before entering Denmark. As a result, it will allow them to provide Global Employment Outsourcing services in the country.

In Denmark, the standard VAT rate is 25.00%.

Termination Process

Contrary to the onboarding employee process, the termination procedure may begin for Danish employees for business or personal reasons. In addition, a Danish company can dismiss an employee due to misconduct. However, it requires a warning and a written explanation for the termination.

Notice Period

In essence, European Union Countries like Denmark use a notice period depending on the permanent or temporary employee’s length of service. Indeed, Danish Labour Law establishes a notice period of between one and six months.

On the other hand, the Act of Employment in Denmark dictates the following allowance:

• One month’s allowance for Danish employees with a length of service of at least twelve year.
• Three months’ allowance for employees in Denmark with a length of service of at least seventeen years.

Above all, such an allowance must include salary, benefits, fixed supplements, and the company’s pension share. 

Severance Pay

In Denmark, employees can only receive severance pay depending on their length of employment. Indeed, Danish employees can get one to three months of their salary if they have between twelve and seventeen years of employment. Above all, it requires the employer to terminate the employment relationship.

Probation Period

Regularly, an Employer of Record Company in Denmark uses a probationary period of no longer than three months for every onboarding employee. However, it depends on the type of role and the employment agreement.

Paid Time Offs

According to Danish Labour Law, full-time employees deserve paid leave of 25 days per year. More specifically, they can get 2.08 days of paid leave for each month of service. On the other hand, Danish employees can use two payment systems during holidays according to the Danish Holiday Act. First, they can get their regular salary and a supplement of 1%. On the contrary, they can get 12.5% of their wages as holiday allowance.

Furthermore, payroll outsourcing companies in Denmark must accumulate the paid leave entitlement from 1st September through to 31st December of the following year. Besides, they must divide holidays into three weeks (main holiday) and an additional two weeks (residual holiday).

Finally, Danish employees can transfer up to four weeks of paid holiday to their next holiday period if their employer prevents them from taking such a paid holiday before its period expires.

Public Holidays

There are 12 national holidays throughout the year.

Vacation Holidays

There are 25 vacation holidays throughout the year.

Sick Days

In essence, Danish employees can receive full salary during their sick leave related to illness or injury. On the other hand, they can get full or partial salary during such leave if they are subject to a Collective Bargaining Agreement. Regularly, it involves paying employees 90% of their salary. On the contrary, workers in Denmark can get statutory sickness benefits if they do not receive their salary during their sick leave.

In this sense, the Sickness Benefit Act read as follows:

• Employers in Denmark must pay their employees’ first 30 days of sick leave if their length of continuous services is at least eight weeks. Furthermore, it involves that their Danish employees worked the last 74 hours.
• The remaining days after the first period are the responsibility of the municipality. Nevertheless, the employee must work for at least 240 hours within the latest six months to receive his salary.

Finally, it is worth mentioning that payroll outsourcing companies in Denmark calculate the sickness benefit depending on the employee’s hourly pay and weekly working hours. Indeed, it can be up to 4,460 DKK per week or 120.54 DKK per hour.