Global HR Compliance in Denmark

Hiring in Denmark is a strategic decision that can affect your cost base, compliance exposure, and ability to retain local talent. Employment law in Denmark is shaped by collective agreements, strong worker protections, and a relatively low regulatory burden, but that doesn’t mean the risk of missteps is low. In fact, when entering the market without a Danish legal entity, one of the biggest challenges is finding a hiring method that allows you to meet all obligations without taking on unnecessary liability.

This guide is designed to help companies hiring locally in Denmark, whether building a team from scratch or engaging a single strategic hire, understand how to do so legally, predictably, and with minimal operational overhead.

Through our Global Employer of Record solution, Acumen International enables you to employ workers in Denmark without setting up a local entity. You remain in control of your team’s day-to-day responsibilities, while we manage employment compliance, payroll, and statutory benefits under Danish law.

Whether you’re hiring for commercial expansion, regional operations, or specialist roles, this model gives you a compliant path forward without long setup delays or local incorporation costs.

Why Companies Hire International Talent in Denmark

Denmark’s strong infrastructure, tech-driven economy, and educated workforce make it a prime location for international hiring. Companies often expand to Denmark to:

• Establish a local presence in a strategically located, innovation-friendly Nordic economy.
• Access highly skilled professionals in IT, green energy, pharmaceuticals, and logistics.
• Balance costs and capabilities through flexible hiring models without long-term legal setup.
• Accelerate hiring timelines using existing EOR infrastructure to avoid delays in entity setup.
• Ensure compliance and reduce liability with support from a local employment expert.

Employment Contracts in Denmark

Employment contracts are required for any employee working at least eight hours per week over a period of one month or longer. Contracts must be issued within one month of the employee’s start date.

Written contracts must outline:

• Job title and description
• Start date and location of work
• Working hours
• Salary and pay schedule
• Paid leave entitlements
• Notice period terms
• Reference to any applicable collective agreement.

Working Hours and Overtime

A typical Danish workweek is 37–37.5 hours, spread Monday to Friday, usually between 8:00 and 17:00. The law caps working hours at 48 per week on average over a four-month reference period.

Overtime policies, including compensation, are typically defined in collective bargaining agreements (CBAs). Where no CBA applies, terms are agreed upon in the employment contract.

Probation Period

There is no mandatory national probation period in Denmark. However, salaried employees commonly undergo a probation period of up to 3 months, during which either party can terminate the contract with 14 days’ notice.

Annual Leave and Public Holidays

Employees are entitled to:

• 25 days of paid annual leave, accrued at 2.08 days per month.
• 12 public holidays, including New Year’s Day, Easter-related holidays, Ascension Day, Common Prayer Day, Christmas Day, and others.

Leave is earned and taken within a “holiday year” running from 1 May to 30 April.

Salaried employees typically receive full pay during leave, while hourly workers accrue a 12.5% holiday pay supplement.

Parental Leave

Mothers are entitled to:

• 4 weeks of leave before birth
• 14 weeks after birth

Fathers are entitled to:

• 2 weeks of leave during the first 14 days following the birth

Parents then share:

• 32 weeks of parental leave, which can be extended by 14 weeks

Government benefits partially compensate for parental leave. Many employers offer full salary during part of this period, then get reimbursed by the state.

While termination of pregnant employees is not outright banned, employers must prove any dismissal was unrelated to pregnancy or leave. Failure to do so can result in significant compensation—often 6–9 months’ salary or more.

Sick Leave

Employees must notify their employer immediately upon falling ill. Employers typically pay sick leave for the first 14 days, after which the municipality assumes payment responsibilities. Coverage terms may vary based on CBAs.

Some collective agreements also allow short-term paid leave for parents when children are unwell.

Minimum Wage in Denmark

There is no statutory national minimum wage. Instead, wages are negotiated through collective agreements.

As a guideline, average agreed minimum wages under CBAs hover around DKK 110/hour, excluding pension and additional benefits. Employers must adhere to wage levels defined by the applicable union agreements.

Termination and Severance

Denmark’s termination rules are relatively straightforward but still require care.

• Notice periods for salaried employees range from 1 to 6 months, based on seniority, per the Salaried Employees Act. CBAs or individual agreements may define different terms.
• Just cause is often required for dismissal, especially in long-term employment.

Unjustified termination may entitle the employee to compensation. Employers are advised to consult legal counsel, particularly when terminating protected employees (e.g., pregnant or on leave).

Severance compensation may apply:

• After 12 years of service: up to 1 month’s salary
• After 15 years: up to 3 months’ salary
• For employees aged 30+ with 10+ years of service: up to 4 months’ salary.

How Acumen International Can Help You Hire in Denmark

Direct Employment Without a Local Entity
Acumen International acts as your legal Employer of Record in Denmark, allowing you to hire local staff without setting up a Danish entity.

Local Compliance, Centrally Managed
We handle employment contracts, payroll, benefits, and tax reporting in accordance with Danish law, ensuring full compliance with evolving regulations.

Custom Support for Complex Hiring
We align employment structures with your business model and compliance requirements, including hybrid, senior, performance-based, or cross-border roles.

Global Mobility Support
Our expertise includes work permit sponsorship and guidance for relocating non-EU nationals to Denmark under compliant immigration routes.

Strategic Cost Estimation with Global Payroll Calculator
Use our Global Payroll Calculator to estimate gross-to-net pay, employer contributions, and total cost of employment in Denmark before making hiring decisions.

One Partner Across 190+ Countries
Manage your international workforce from a single, experienced partner with local know-how and centralised coordination — reducing time, cost, and administrative complexity.