EMCC European Monitoring Centre on Change

Denmark: Severance pay/redundancy compensation

Denmark
Phase: Management
Type:
Severance pay/redundancy compensation
Sist endret: 19 October, 2021
Virkelig navn:

Bekendtgørelse af lov om retsforholdet mellem arbejdsgivere og funktionærer (LBK nr 81 af 03/02/2009)

Engelsk navn:

The Danish Act on the legal Relationship between Employers and Salaried Employees (Consolidation Act no. 81 of 3 February 2009)

Artikkel

2

Beskrivelse

Dismissed employees are entitled to notice pay.

For salaried workers this is the following (for non-salaried workers this is regulated in collective agreements):

  • one month notice pay for service of up to five months;
  • three months for service of five months to two years and nine months;
  • four months for service of two years and nine months to five years and eight months;
  • five months for service of just over five years and eight months to eight years and seven months;
  • six months for longer service than eight years and seven months.

In addition, for service of 12, 15, 18 years employees are entitled to redundancy pay under Section 2a of the Salaried Employees Act (one, two and three months’ salary respectively).

These are valid for individual as well as collective dismissals; there is no general legal entitlement to anything more than is provided for in an individual dismissal unless envisaged by a collective agreement or social plan.

Kommentarer

In addition, employees may be entitled to contractual redundancy pay under their contracts or under a collective agreement.

Cost covered by
  • Employer
Involved actors other than national government
National goverment only
Thresholds
No, applicable in all circumstances
Kilder
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