Collective agreement
What does it mean?
A collective agreement (overenskomst) is an agreement between one or more trade unions and an employer or employers’ organisation. It sets, for example, minimum pay, working hours, overtime pay, pension, holiday, parental leave and further training.
Denmark has no statutory minimum wage. Pay levels are instead agreed in collective agreements and individual contracts — known as the Danish model. That is why it matters whether your workplace is covered by a collective agreement.
If you work at a workplace covered by an agreement, its terms generally apply to you, even if you are not a union member. If your contract does not say, ask your employer.
As a foreigner, a union can help you check whether your pay and terms match Danish standards.
Magnus Villumsen
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