Dismissal

Dismissing an employee in Denmark: notice periods and rules

How to dismiss an employee correctly in Denmark: Salaried Employees Act notice from 1 to 6 months, objective reasons, written notice and severance pay after 12 and 17 years.

Step-by-step guide

  1. 1

    Have an objective reason

    A dismissal must be reasonably justified by the employee’s or the business’s circumstances, such as cooperation problems, poor performance after a warning, or cutbacks. If a funktionær has been employed for at least 1 year, an unfair dismissal can trigger compensation under § 2 b of the Salaried Employees Act. Write down what happened and when you discussed it with the employee. Documentation is your best defence.

  2. 2

    Calculate the notice period correctly

    Employer notice under the Salaried Employees Act: 1 month in the first 6 months of employment, 3 months up to 2 years and 9 months, 4 months up to 5 years and 8 months, 5 months up to 8 years and 7 months, and 6 months after that. Notice always runs to the end of a month. If probation is agreed, you can give 14 days’ notice in the first 3 months. Collective agreements and contracts can give longer notice.

  3. 3

    Give notice in writing and on time

    Give the dismissal in writing so it can be documented, and make sure the employee receives it no later than the last day of the month before notice starts to run. One day late moves the end date by a whole month. If the employee asks, you must give the reason in writing. Hold a short meeting, hand over the letter in person, and get a receipt or send it in a way that documents delivery.

  4. 4

    Know the protected situations

    Dismissal because of pregnancy, maternity or parental leave is illegal — and here the employer must prove the dismissal was not for that reason. Union representatives have special protection under collective agreements. The Anti-Discrimination Act prohibits dismissal because of, for example, age, disability, religion or ethnic origin. Get advice before dismissing in any of these situations.

  5. 5

    Severance pay and garden leave

    A funktionær with 12 years’ employment must receive 1 month’s salary as severance, and after 17 years 3 months’ salary (§ 2 a of the Salaried Employees Act). You can release the employee from duty during notice; salary must still be paid. Agree in writing what happens with holiday, equipment, bonus and any offsetting of pay from a new job, to avoid disputes later.

  6. 6

    Hourly-paid and non-salaried staff

    For employees who are not funktionærer, notice follows the collective agreement or the contract. Without an agreement notice can be very short, but the dismissal must still be objectively justified under general rules and must not be discriminatory. Put the notice periods in the written terms from day one so everyone knows the rules before they matter.

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Frequently asked questions

During an agreed probation of at most 3 months, a funktionær can be dismissed with 14 days’ notice, and it does not have to be to the end of a month. Probation must be agreed in writing, and notice must be given before probation ends. See the guide on probation for details.

Yes, if a funktionær asks, you must give the reason for the dismissal in writing. After 1 year of employment the dismissal must also be objectively justified, or you may face a compensation claim. Keep the reason short and factual, and stick to matters you can document.

Yes, sickness does not prevent dismissal, but it must still be objectively justified, and you must consider whether the illness could be a disability under the Anti-Discrimination Act. If the 120-day rule is agreed in writing, a funktionær can be dismissed with 1 month’s notice after 120 sick days within 12 months — notice must be given in connection with the 120th sick day.

Summary dismissal requires a serious breach of the employment, such as theft, violence or gross disloyalty. The bar is high: if summary dismissal is unjustified, you typically pay salary for the notice period and possibly compensation. If in doubt, give a written warning or an ordinary dismissal instead.

A funktionær can resign with 1 month’s notice to the end of a month unless otherwise agreed. You do not pay severance when the employee resigns. Use the notice period for handover, and start recruiting immediately.

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