Checklist: How to read your employment contract
How to check your contract
1. Use IDA's checklist
At IDA’s legal department, we review many thousands of contracts every year, and fortunately the vast majority of employment contracts are standard and present no issues whatsoever.
Use the checklist whilst reading through the contract to ensure that all legally required information is included and that agreements with your employer are clearly set out. If everything is in order, you can sign the contract with peace of mind.
2. Ask your employer
If you notice any minor details that are missing, or if anything is unclear, it’s perfectly fine to ask your employer for clarification yourself. Many issues can be resolved quickly by asking your employer directly. It simply shows that you’re reading the contract carefully and want to be clear about the terms before signing it.
3. Have IDA's advisors review the contract
If, after speaking to your employer, you are still unsure about anything, or if there are any issues you would like an advisor to look at, we are of course here to help you.
In the checklist, we also guide you on which parts of the contract you should have IDA’s legal advisers look at.
Please upload your contract and, if applicable, the company’s staff handbook when you write to us. Please feel free to elaborate on which specific points in the contract you have questions about.
Log in and upload your contract for review by IDA's legal advisors
Checklist: Legal minimum requirements for your Danish contract
Parties
Your full name and address and the employer's name and address.
Starting date (and end date, if relevant)
The starting date of your position must be stated in your contract. If your employment is for a fixed term, the end date or expected duration of your employment must be stated in the contract.
Place of work
The location of the workplace must be stated in your contract. If there is no fixed workplace where you will mainly carry out the work, it must be stated that you are employed at different addresses or that you are free to decide where you work from.
Title and work tasks
Your contract must contain your job title or tasks.
Working hours and overtime
Your weekly or daily working hours must be stated in your contract.
In Denmark, working hours are not set by law, and without fixed working hours you have no upper limit to your weekly working hours. You are only protected by the Working Time Directive's cap of an average of 48 hours per week over a period of four months and the Working Environment Act's 11-hour rule (minimum 11 hours of rest between two working periods).
Working hours are normally 37 hours per week, excluding lunch for private sector employees. If you have a paid lunch break, this must be specified in your contract.
IDA is against employment without maximum working hours. If you cannot get a provision on maximum working hours inserted in your contract, an alternative could be a provision that the weekly working hours "in principle" amount to 37 hours.
Time spent on business trips and further training should also be included as part of the working time.
Your employment contract must state whether you can be required to work overtime, which conditions must be met and how you will be remunerated for overtime.
See the most important rules for working hours
Holidays, extra holidays, parental leave and other paid leave
Holidays, extra holiday entitlements, parental leave, sick leave for yourself or your child, and other paid leave must either be specified in your contract, or the contract must state where you can find information about your rights. This may be set out in a collective agreement or staff handbook.
Get an overview of the rules on holidays and days off
Get an overview of the rules on sickness and absence
Get an overview of the rules on parental leave
Salary and pension
Your salary, including any allowances and bonus schemes must appear in the contract.
It must also be stated when your salary will be paid out.
If you are covered by a pension scheme, this must also be stated in the contract.
Use IDA’s salary tools to calculate your salary level
How to ensure you save enough for your pension
Terms relating to dismissal and termination
Your and the employer's notice of termination must be included in the contract. IDA's members are almost always covered by the Salaried Employees’ Act in terms of the positions they hold. Therefore, a mention of the Salaried Employees' Act will suffice.
If you are subject to a probationary period, this must be stated in your contract.
If you are covered by the 120-day rule in the event of termination due to illness, this must be stated in your contract.
How much notice am I entitled to if I am made redundant?
What is my notice period if I am made redundant during my probationary period?
What is the 120-day rule, and when does it apply in the event of redundancy?
Education and training
If your employer offers courses or training as part of your employment, your rights should be described in the contract.
Social security
Your contract must state which social security contributions are made by your employer. These include ATP, industrial injuries insurance etc.
Collective agreements and other agreements
The contract must refer to any collective agreements or other agreements that regulate the employment relationship.
For members
Let IDA review your contract
If there is anything missing from your contract, or if your employer hasn’t replied to your questions, we’re here to help.
For members
Let IDA review your contract
If there is anything missing from your contract, or if your employer hasn’t replied to your questions, we’re here to help.
Checklist: Terms and conditions – in addition to statutory requirements – that may be included in your contract
It is very common for a contract to contain terms and conditions other than the statutory minimum requirements, such as:
Working hours
Working hours aren’t just about how many hours you work, but also how and when those hours are scheduled. Make sure the following is clearly stated in your contract:
- Is your lunch break paid or unpaid?
- Do you have fixed working hours or flexible working hours?
- Does your employer expect you to work irregular hours or be part of a shift rota?
See the key rules on working hours
Traveling for work and travel expenses
If you travel with your job, you should know how often your are exptected to do so. This will give you an overview and help you structure your work week.
At the same time, you should ensure that there are clear rules on how travel expenses are handled and what you are entitled to be reimbursed for. This makes travel easier and more predictable for you.
As a salaried employee in Denmark, you are entitled to an advance payment towards travel expenses. This means you do not have to pay out of your own pocket for things such as hotels, transport or meals.
Read more about the rules for travel in connection with work
Pension
Your contract must mention a pension if you are covered by a pension scheme. It is worth noting that, as a private-sector employee, you are not entitled to be covered by a pension scheme.
IDA recommends that you contribute a minimum of 10 per cent and an average of 16 per cent of your salary to your pension throughout your working life.
How to ensure you save enough for your pension
Extra holidays and days off
You are entitled to 5 weeks of holiday according to the Holiday Act.
Everything beyond this must be agreed with your employer. This means that extra holidays and days off must appear in your contract. The same applies to the rules for earning and settling extra days off.
Most IDA members have 5 extra holiday days off per year as agreed in their contract (feriefridage).
It must be clearly stated in either the contract, the staff handbook or any relevant collective agreement how many days of annual leave and public holidays you are entitled to, and who decides when you can take them.
Read more about the holiday rules
Parental leave and children
Parental leave and leave of absence policies vary greatly from one company to another. The law grants you certain minimum rights, but many companies offer better arrangements.
This must be clearly stated in either your contract, the staff handbook or any relevant collective agreement:
- How long you will receive pay during parental leave, and whether it is full or partial pay
- Rules regarding paternity/co-parental leave
- Whether you are entitled to paid leave when your child is ill
- Whether special days of absence (e.g. for taking your child to the doctor) are covered
Parental leave and a child’s illness have a significant impact on your daily life and finances, so the terms and conditions should be clear and easy to find.
Read more about the rules regarding parental leave in Denmark
Read more about the rules for children's illness
Bonus
The bonus criteria should be set out in writing and be as specific as possible. You need to know the answers to these questions:
- What targets do you need to meet?
- Are you assessed individually, as a team, or as part of the company as a whole?
- Are the bonus targets specific and measurable, or based on an assessment of, for example, your performance?
- Can the model be changed from year to year?
Bonus and performance pay: What you need to know
Stock options, warrants and shareholder agreements
We recommend that you contact IDA’s legal advisers if you are presented with a stock option or warrant agreement, as the terms and conditions of stock options and warrants are complex and vary greatly from one workplace to another. The same applies if you are presented with a shareholder agreement.
Log in and write to IDA about stock options
Log in and write to IDA about shareholder agreements
Employee shares – what are they and are they an advantage for you?
Employee benefits
It is common for employers to offer employees fringe benefits in the form of employer-paid wifi, mobile phones, computers, newspapers and the like. Such agreements must be included in the contract, and it must be stated whether you may use it privately at the employer's expense.
Read more about fringe benefits as an alternative to salary
Continuing education and skills development
If you are to have the right to further training, this must be stated in your contract.
Further education and training is a sound investment for both you and the company. That is why it is important to be aware of the terms and conditions.
For example, does the contract state that you are entitled to a certain number of training days per year, or that there is a fixed annual budget?
For longer courses (e.g. diploma or master’s programmes), some employers require an agreement regarding repayment if you drop out during the course or leave your position within an agreed retention period after completing your studies.
We recommend that you contact IDA’s legal advisers if you are asked to sign an education clause.
Contact IDA about education clauses
Read more about training clauses
Inventions and Copyright
If you create or invent something, there is a high probability that you will have to transfer the rights to your employer.
However, you can enter into an agreement with your employer that you retain the rights yourself, or that you are paid a bonus if what you create is successful.
If you take a job where there is a probability that you will invent something, or if you work with inventions in your spare time, you should therefore have your employment contract read through by IDA.
Read more about copyright for inventions (In Danish)
Confidentiality
Confidentiality means that you must not share the company’s confidential information with others, either during your employment or after you have left. This may include, for example, information about customers, prices, internal strategies, finances, technical solutions or personal data.
The purpose is to protect the company, but the duty of confidentiality should not be broader than necessary, and it must not prevent you from using your general experience and knowledge in your next job.
It is important that the contract specifies the types of information covered by the duty of confidentiality, so that you know exactly what you need to be aware of.
Non-competition clauses and non-solicitation clauses
Employment clauses (non-competition and non-solicitation clauses) may restrict your ability to change jobs after you have been hired, as they prevent you from taking up employment with competitors, former clients and business partners, and may also limit your ability to work as a self-employed person.
IDA advises against employment clauses, and we therefore always recommend that you have IDA’s legal advisers review your contract if it contains an employment clause.
Log in and write to IDA about clauses in your contract
Read more about clauses and how you can limit them
Volunteering roles and secondary occutations
You have the right to do volunteer work without pay or to have symbolic paid duties alongside your work, without the consent of your employer. This applies, for example, to board work in sports associations, political work or board work in professional associations.
However, your side job must not be incompatible with your employment, e.g. because it involves risks to your health, it endangers business secrets, it compromises your integrity in public administration, or it involves a conflict of interest.
Your job must also not be a disadvantage for the employer. There is no concrete definition of when your job is disadvantageous, and a concrete assessment must therefore be made. One rule of thumb, however, is that it is a disadvantage if you cannot carry out your work as agreed.
If you are unsure whether your secondary employment is compatible with your main job, you should ask your employer or contact IDA for advice.
Log in and contact IDA's legal advisers
Terms described in the staff handbook or collective agreement are also part of your employment
You must therefore be aware that you may have conditions that are not in your contract. These terms may be contained in a collective agreement, a staff handbook or the like. In your employment contract, you must be informed about which collective agreements or agreements regulate your employment.
Staff handbook (personalehåndbog)
Many companies have a staff handbook that sets out internal rules and guidelines for the workplace. This can cover everything from working hours, absence and working from home to employee benefits, IT policy, parental leave rules and codes of conduct.
Although the staff handbook is not part of the contract itself, it is often considered an integral part of your terms of employment because the contract refers to it. This means that the rules in the staff handbook can have a direct impact on your day-to-day work and your rights.
That is why it is important that you ask to be given a copy of the staff handbook before you sign. Read it thoroughly so that you know what you are agreeing to.
Collective agreement
A collective agreement is an agreement between a trade union and an employer or an employers’ organisation that sets out the key terms and conditions of employment.
If you are covered by a collective agreement, this means that many of your terms and conditions of employment are already determined by that agreement and therefore do not need to be negotiated individually. You should ask to be provided with a copy of the collective agreement so that you can familiarise yourself with it.
If you are covered by a collective agreement, we recommend that you contact us, regardless of whether the agreement was negotiated with IDA or not.
Log in and contact IDA for legal advice
See all IDA's agreements (in Danish)
Standard contracts
You can also download IDA's standard contract to see how a clear and valid contract can look.