Doing business in Denmark: Staff welfare
24 March 2012by Ina Dimireva -- last modified 30 March 2012
This guide summarizes the Danish legislation responsible for ensuring staff welfare.
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Legal requirements
Social rules
Non-discrimination, equal treatment and gender equality
It is necessary to treat men and women equally with regard to hiring, appointments, transfers, promotions, vocational education and dismissal.
Gender-based pay discrimination is also forbidden.
Act on Equal Pay for Men and Women
Similarly, there are rules to be followed on this:
A woman is entitled to maternity leave from 4 weeks prior to her expected due date to 14 weeks following the birth. Parents are entitled to parental leave for a further 32 weeks.
Act on leave and benefits due to pregnancy and childbirth It is forbidden to dismiss an employee for exercising her right to maternity leave or time off due to pregnancy and maternity.
All workers in the private labour market must be members of a maternity leave compensation scheme. Employers can thus obtain a partial refund of salaries paid during maternity leave.
Health and safety at work
Employers are responsible for ensuring that there is a healthy, safe working environment within the company. The Danish Working Environment Authority carries out inspections to ensure that companies comply with the rules on the working environment.
EU directives on the working environment are implemented through a number of executive orders.
Danish Working Environment Authority executive orders
Smoking indoors is not permitted. Workplaces must have a written smoking policy defining whether it is possible to smoke at the workplace and, where relevant, the consequences of not complying with the smoking policy.
Act on Smoke-Free Environments
The main players are:
Danish Working Environment Authority
Working Environment Appeals Board
National Research Centre for the Working Environment
Working Environment Information Centre
Danish Trade Working Environment Councils
Working Environment Consultants
Description of individual players
Occupational injury insurance
Employers must insure employees against work-related injuries. Occupational accident insurance must be taken out with an insurance company.
Act on Occupational Injury Insurance
Insurance cover for occupational diseases is obtained through contributions to the Labour Market Insurance Scheme for Occupational Diseases. The size of the contributions varies between industry groups.
Labour Market Insurance Scheme for Occupational Diseases (AES)
Labour law
Contract law
Legislation
Legislation in the Danish labour market is limited to a few laws, as wage and employment conditions are traditionally regulated by the parties in the labour market by means of collective agreements.
The Danish system of employment laws and collective agreements
Labour relations
There is no legislation on minimum wages and normal working hours in Denmark. Wages and working conditions are regulated by means of collective agreements.
The Working Time Directive has been implemented in Danish law by the Working Time Act. This contains rules on breaks, maximum working time, weekly days off, night-time working, etc.
Businesses with more than 35 employees must provide employees, through employee representatives, with comprehensive information on issues that significantly affect employees.
Employee (Provision of Information and Consultation) Act
Holiday pay, wages and bonuses must be paid in accordance with the Holidays Act. Employees earn the right to 5 weeks' paid holiday annually.
Labour protection
Employee representatives, including official representatives take care of employee interests and safety. They are given special protection against dismissal. This protection also applies in the event of a company transfer.
Employee (Provision of Information and Consultation) Act
There is special legislation relating to health information.
Act on the Use of Health Information in the Labour Market
Litigation
Labour law institutions
The Labour Court mainly handles cases concerning violations and interpretations of main contracts and similar agreements with general and principal provisions in the area of collective employment law, violations of other collective agreements relating to wage and working conditions, and the legality of collective action, including its use to support demands for an agreement in areas where a collective agreement has not been entered into.
The Industrial Arbitration Courts are the court of last instance in the labour law system. At the arbitration court, negotiation and mediation meetings are held between the parties. An industrial arbitration decision cannot usually be appealed against.
The Danish Conciliation Board provides assistance if parties in the labour market cannot reach agreement on entering into or renewing contracts.
The following laws regulate the rules for the labour law institutions:
The Act on the Labour Court and Industrial Arbitration Courts lays down the rules for bringing cases to court.
The Act on Mediation in Labour Disputes, or the Arbitration Act, as it is known, aims to reconcile the parties, particularly by concluding new agreements.
Act on the Labour Court and Industrial Arbitration Courts
Act on Mediation in Labour Disputes
The Board of Equal Treatment
There is also the Board of Equal Treatment, which is a board assembled to handle complaints of discrimination. The Board deals with:
Discrimination within the labour market: complaints related to discrimination on the grounds of sex, race, skin colour, religion or faith, political persuasion, sexual orientation, age, disability or national, social or ethnic origin.
Discrimination outside the labour market: complaints related to discrimination on the grounds of race, ethnic origin and sex outside work.
Mandatory social rules complete the requirements related to managing staff.
Businesses are free to go beyond the minimum social legal requirements at their own initiative.
Administrative procedures
Non-discrimination, equal treatment and gender equality
The Board of Equal Treatment is a board assembled to handle discrimination complaints.
Complaints can be lodged with the Board free of charge.
Information and guidance on lodging a complaint
Health and safety at work
Workplace assessment
All companies that have employees must prepare a written workplace assessment (APV). In order to help companies do this, the Danish Working Environment Authority has prepared 62 APV sector-based checklists that are especially aimed at companies with fewer than ten employees.
The APV checklists are offered for use, but are not mandatory. A company can choose which method to use in its APV - as long as it covers all key problems relating to the working environment.
62 sector-specific APV checklists
The National Board of Industrial Injuries administers the Danish industrial injury scheme and makes decisions regarding compensation payments and remuneration.
National Board of Industrial Injuries
Social insurance
Occupational injury insurance
Employers must insure employees against work-related injuries. Occupational accident insurance must be taken out with an insurance company.
Insurance cover for occupational diseases is obtained through contributions to the Labour Market Insurance Scheme for Occupational Diseases. The size of the contributions varies between industry groups.
Labour Market Insurance Scheme for Occupational Diseases (AES)
Sick pay
Employees are entitled to sick pay when they are absent owing to illness.
There are employer insurance schemes for sick pay, which are administered by the Danish Agency for Governmental Management.
Danish Agency for Governmental Management website on insurance schemes
Resources
A complete overview of labour legislation can be found on the homepage of the Ministry of Employment.
Information for foreign employers and employees concerning working in Denmark can be found on the Ministry of Employment website:
The Ministry of Employment website contains information about unemployment allowances and cash benefits.
The Danish Working Environment Authority helps to ensure a safe, healthy and innovative working environment by providing efficient supervision, focused regulation and up-to-date information.
Danish Working Environment Authority
Some of the Danish Trade Working Environment Councils have prepared APV checklists that companies can use instead of - or together with - the checklists by the Danish Working Environment Authority. The Danish Working Environment Authority has also prepared 36 sets of sector-based guidelines on the working environment that companies can read to find out more about working environment requirements and good advice on preventing problems with the working environment.
36 sets of sector-specific guidelines on the working environment
Information about rules, etc. relating to sick pay can be found on the National Directorate of Labour website.
Information about public health insurance in Denmark can be found at borger.dk, together with information on health insurance for nationals of other EEA Member States.
Information about different types of adult and further training aimed at businesses can be found on the Ministry of Education website, where there is also information about funding for training.
Adult and further training aimed at businesses
Information and opportunities for self-service public administration can be found on borger.dk.
Source: European Commission
