Termination
Grounds
An employer must always have a substantial reason for firing
an employee; such as unfitness, cooperative problems or a situation in the
company which requires dismissal (for instance work shortage, restructure or cost-savings).If
an employer is not satisfied with efforts of their employee, it is normal for
the employer to provide one or several warnings, so that the employee has the
opportunity to correct the situation that the employer is dissatisfied with.
Termination notices
are given with effect from the last day of the calendar month regardless of
when during the calendar month this notice is served.
Termination Process
Employers can terminate a fix term contract for the following reasons –
business, personal or worker’s’ misconduct. It requires notice and a written
explanation for the termination. If the reason is misconduct, a warning needs
to be given and the employee gets a chance to explain actions.
The date of Resignation/Termination must be reported in the
month the employee resigns.
Notice Period
In accordance with
the labor law in Denmark, the notice period is dependent on the length of employment.
In general, the notice period is determined by the Act of Employment or by the
Collective Bargaining Agreement.
The employer’s notice period is stipulated as per the Act on Salaried Employees
according to the following scheme:
|
Duration of employment
|
Notice Period
|
|
0–5 months
|
1 month
|
|
5 months – 2 years and 9 months
|
3 months
|
|
2 years and 9 months –5 years and 8 months
|
4 months
|
|
5 years and 8 months –8 years and 7 months
|
5 months
|
|
8 years and 7 months + years
|
6 months
|
|
Agreed probationary period of max. 3 months
|
14 days
|
|
Agreed temporary assignment of max. 1 month
|
No notice
|
Severance Pay
There are no
statutory laws on severance pay; however, salaried employees who have been
continuously employed for 12 or 17 years are entitled to severance pay
corresponding to 1 month or three months’ salary if the employer terminates the
employment.
Unfair dismissal
• <1 year service: No protection
• >1 year service: Termination must be “reasonably
justified by the circumstances of the employer or the employee.” Redundancy is generally
considered a reasonably justified circumstance (provided the position is not immediately
refilled).
• In the event of unfair dismissal, employee is entitled to
compensation equal to 1-6 months of pay, depending on length of service and
other factors.
Other payments
Employees are
entitled to payment for accrued but unused holiday/annual leave/vacation time (employer pays into a fund, and the
employee receives payment directly from the fund).