Amendment to an Act – Do your employment conditions match?

New Rules in the Employment Contracts Act – Effective July 1, 2023

A series of new rules came into force on July 1, 2023, under the Employment Contracts Act. Are you aware of the new employment conditions your employees are entitled to? These changes result from the obligation to implement the provisions of the EU Working Conditions Directive into Danish law.

Deadline for Essential Conditions in the Contract Reduced to 7 Days

Previously, employers had to inform employees of all essential terms of employment within one month of the employment relationship beginning. This limit has now been reduced to 7 days.

Essential terms include:

• Identity of the employer or company (e.g., CVR number, address, phone number, email).
• Employee’s identity (e.g., name, address, phone number, civil registration number).
• Payment details for the employee (e.g., account and registration number).
• Start time and duration of the employment relationship, if fixed-term.
• Job title and primary tasks.
• Workplace address.
• Working hours and the number of hours per week/month.
• Salary, pension, and bonus agreements.
• Applicability of the Holiday Act.
• Details on absence due to illness and maternity leave.
• Termination conditions and any trial period.
• Internal workplace policies (e.g., uniform, smoking, alcohol, staff handbook).
• Confidentiality, loyalty, and any competition or customer clauses.
• Applicable law and jurisdiction for the employment relationship.

Non-material matters, such as notice periods, holiday rights, continuing education, and user company information in temporary employment, should also be included. We recommend submitting an employment contract as soon as possible within the 7-day deadline, covering both significant and non-significant conditions.

Employment Contract Threshold Lowered

Previously, the maximum hourly limit was 8 hours per week before an employment contract was required. Under the new rules, employees working just 3 weekly hours or more must have a formal employment contract.

5 Annual Care Days

Employees are entitled to 5 days of carer’s leave per calendar year. Employers are not obliged to pay wages for these days. Unlike holidays, unused care days will lapse at the turn of the year, and 5 new care days will be allocated. Care days are defined in section 1a of the Act as:

“Providing personal care or support to one’s own children, parents, spouse, partner, or a person living in the same household as the employee who needs essential care or support due to a serious health condition.”

Trial Period

For new hires, trial periods now cannot exceed 6 months before general notice periods take effect. For fixed-term employment, the trial period may not exceed 1/4 of the employment period. If the employee falls under the Salaried Employees Act, its provisions will take precedence over this amendment.

The Right to Secondary Occupation

Previously, employers could restrict secondary occupations through the employment contract. Under the new rules, employers cannot prevent employees from taking work with other employers or treat them unfavorably unless the secondary occupation conflicts with the existing employment relationship. A specific assessment must be made for each case of secondary employment.