According to the IMD World Competitiveness Report 2010, Denmark offers the highest labour market flexibility in Europe and is ranked 6th in the World. Scaling a business up or down can be implemented more smoothly in Denmark than anywhere else in Europe.
Key advantages when hiring employees in Denmark
Get access to the right skills: Denmark offers a very well-educated population with excellent foreign language skills. A high proportion of the population has a university degree and – and within sectors such as Cleantech, ICT and Life Sciences the talent pool is uniquely attractive
Full flexibility reduces business risks: The Danish “flexicurity” model offers a flexibility in hiring and firing practices which is unique in Europe. Wages and work hour rules are negotiated between labour market organizations or directly in the company to best address market conditions and business needs.
Stability and transparency: The Danish labour market is very stable with few strikes and an efficient and low-cost arbitration system for resolving labour disputes
Key advantages when firing employees in Denmark
Liberal termination rules: Compared to other European countries the Danish rules for termination of employment contracts are very liberal, making it easier for an individual business to adjust the size of its workforce.
Easy dismissal: In Denmark the employer can freely choose whom to dismiss as long as the termination is justified.
No reemployment obligations: A Danish employer has no obligations to reemploy previous employees.
Monetary
Usually the employment contract states a monthly or yearly remuneration, the payment terms and yearly renegotiation of salary. In general, Danish employees are offered a fixed monetary remuneration. In addition, some will receive a variable monetary remuneration such as bonus, commission and gratuity.
Pension
The Danish Labour Market Supplementary Pension Scheme (ATP) and minor statutory contributions totalling approx. DKK 5,000 per year are mandatory and paid automatically by the employer.
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Download our detailed factsheet Hiring Danish employees.