Termination from employment in Denmark
If you are terminated from your position, you should always contact IDA so we can advise you and ensure that your rights are upheld.
What should I do if I am terminated from my position?
When you receive a notice of termination from your employer, it is fine to sign it. Your signature does not mean that you agree to the termination, but merely that you have received it.
If you do receive a severance agreement, do not sign it until you have had the help of an IDA legal adviser to review it.
If you are in doubt whether you are looking at a notice of termination or severance agreement, you should contact IDA before signing it.
You can always contact IDA for individual advice on your dismissal.
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If you are employed as a public servant (tjenestemand) and are terminated, we encourage you to contact us so that we can advise you individually on which rules apply to your particular employment.
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What can I be terminated for?
If you are terminated, it can either be due to reasons related to your employer or to yourself.
Termination due to the employer's circumstances can be:
- Cuts or savings
- Restructuring in the company
Termination due to your circumstances can be:
- That you do not have the necessary skills to handle the job
- That you are to blame for cooperation difficulties
- That you arrive late or do not carry out your tasks properly
- That you are disloyal to the employer
- That you have too many sick days: read more about the 120-day rule
When does the termination come into effect?
A termination is effective from the time you receive it, regardless of whether you read the termination or not.
This principle may be waived in special circumstances. It could be, for example, that your employer is aware that you have traveled away in connection with your job when the letter/email is sent.
What should be written in the notice of termination?
As a private sector employee, you can be given notice both verbally and in writing, but the employer will almost always give you written notice of termination.
If you are a public sector employee, the notice of termination must always be in writing.
There are slight differences in what must be stated in the notice of termination for private and public sector employees, respectively:
- Private sector employees: There are no requirements for the content of the notice of termination, except that it must be clearly and unequivocally stated that you have been terminated and must resign from your position after a period of time that at least corresponds to your notice of termination. In addition, you can demand a written reason for the termination.
- Public sector employees: It must be clear from the notice of termination that you have been terminated. There must also be a written justification for the termination, where reference is made to the relevant rules and where the reason for the termination is stated. As a public sector employee, you have the right to be consulted prior to an intended termination. This means that you must have the opportunity to express yourself in writing about the basis for the termination.
How long notice do I have at my job if I am terminated?
Your notice of termination is in your employment contract or collective agreement.
If you are covered by the Civil Service Act (Funktionærloven), your notice of termination depends on how long you have been employed. The same notice lengths from the Civil Service Act also apply to public servants:
- Employed for 0-6 months: 1 month (notice of termination must be given before the end of the 5th month of employment)
- Employed for 6 months-3 years: 3 months (notice of termination must be given before the end of 2 years and 9 months of employment)
- Employed for 3-6 years: 4 months (notice of termination must be given before the end of 5 years and 8 months of employment)
- Employed for 6 years - 9 years: 5 months (notice of termination must be given before the end of 8 years and 7 months of employment)
- Employed for more than 9 years: 6 months (notice of termination must be given more than 8 years and 7 months of employment)
If you and your employer have agreed on a mutually extended notice of termination in the employment contract, where the notices in the Civil Service Act are extended for both parties, the employer must respect it.
What is my notice of termination if I am fired during the probationary period?
If you are employed with a probationary period, the employer's notice of termination is 14 days during the probationary period. However, there are a number of conditions that must be in place for the employer to terminate you with this short notice:
- that the trial period is agreed to be a maximum of 3 months long.
- that the probationary period is agreed in the employment contract.
- that the termination is notified so early in the trial period that you resign before the end of the trial period.
When can I be released from my job if I am terminated?
Being released from one's duties (fritstillet) means that you keep your salary and employee benefits during the notice period, but that you do not show up for work or perform your usual tasks. It is your employer who decides whether you should be released from your duties or not. You cannot therefore demand to be released when you have been given notice.
During the release period, you can take up new work, but it must not be with competing companies, as during the release period you are still bound by your duty of loyalty to your employer.
If you find new non-competing work during the release period, you may be entitled to double pay, but it depends on when you start the new job and how long your release period is. If your release period is 3 months or less, you will be entitled to double pay for the entire period. If your unemployment period is more than 3 months, your employer is entitled to set off the salary in addition to the 3 months in the income you receive from your new employer.
If you are released, it follows from the rules of the Danish Holiday Act that you take as much of your accrued holiday as possible during the period of release. Your employer does not need to make you aware of this. However, IDA always recommends that you negotiate your terms so that you do not have to use your saved holiday during the period of release. IDA can also negotiate your severance agreement so that you get the best possible terms.
It is IDA's opinion that you have the right to be released if your work tasks are taken away from you. If your employer makes an organizational change where your position is abolished, for example, they cannot assign you to solve new tasks during the notice period if they are outside your normal area of responsibility.
When can I be suspended from my job?
If you are terminated, your employer may choose to suspend you during the notice period.
If you are suspended, you do not have to show up at work every day, but you must still be available to your employer if necessary. Therefore, you must make an agreement with the employer if you take a holiday during the suspension period, and you must report sick if you cannot work.
It is important that you agree on clear guidelines for when and how your employer can contact you during the suspension period, because you do not have to be available all the time.
If you have been suspended, this means that:
- You do not have to come to work every day, but you must be available if the workplace needs it.
- You keep your salary and your benefits such as telephone and company car.
- Suspension does not affect your holiday, which must be notified as usual.
- You can be employed in a new place - without the salary being offset, as long as it does not conflict with your duty of loyalty and your duty to be available.
When can I be instantly terminated from my job?
You can be instantly terminated from your job if your employer believes that you have significantly breached your obligations in the employment relationship. This can be, for example, in the case of:
- Theft
- Disloyalty
- Violations
- Illegal absence from work
Being instantly terminated means that the employment relationship – and thus the salary payment – stops immediately. It is therefore a very serious matter to be instantly terminated, and you must always contact IDA for further clarification of your situation.
If you disagree with the termination, you must protest to your employer as soon as possible and contact IDA.
If the instant termination is unjustified, you are entitled to compensation corresponding to the salary during your notice period, and if the situation that led to the termination could not have justified a valid termination, you will also be entitled to compensation for unfair termination. However, it is a requirement for compensation for unfair termination that you have been employed for at least 1 year at the time of instant termination.
Can I start a new job during my notice period if I have been fired?
As a rule, you must come to work and carry out your usual tasks during the notice period. Therefore, you cannot start a new job during the notice period if you have been given notice.
During the notice period, you have the opportunity to go to job interviews during working hours. However, you must not spend working time writing job applications, updating your LinkedIn profile and the like.
If you have been released from your duties, you can take on other non-competitive work during the notice period.
If you are covered by the Danish Salaried Employees Act, and you find new non-competing work during the notice period, you are entitled to double pay for the first three months following the month of release. If your notice period is more than 3 months, your employer is entitled to set off the salary from new non-competing employment for the additional months of your notice period
If you have been suspended, you may undertake other non-competitive work during the notice period. However, you can only take on other work during the notice period if you agree with your new employer that you can be given time off to fulfill your availability obligation. In that case, you can receive double salary during the notice period.
The company has advertised a new position after my dismissal. Shouldn't they offer it to me?
For a dismissal to be considered reasonable, the grounds must be objective – otherwise, you may be entitled to compensation. For example, an employer may dismiss an employee who works in an area where cutbacks have been decided, while seeking employees for another area where the job requirements and qualifications are not the same.
However, if you have been dismissed from a position on the grounds that the position is being discontinued, while at the same time your employer has advertised a similar position for which you are qualified, it may be a good idea to contact IDA's legal advisors for a more detailed assessment.
Can I work in another capacity or elsewhere during the notice period?
The same rules apply to working as a freelancer, volunteer or with your own business as during your employment.
Various types of work are generally permitted, unless they conflict with your duty of loyalty as an employee, e.g. because they involve a competing business or are otherwise incompatible with your employment.
For example, your employer may impose a ban if it could create conflicts of interest or is incompatible with the work in the terminated position in terms of time. You should also be aware of whether your contract contains customer or competition clauses that limit your employment opportunities even after you leave the company. Breaching a clause in your contract may have serious legal and financial consequences. If you are in doubt, always contact IDA.
When is a termination unjust?
A termination is unjustified if it is not justified by factual circumstances on the part of the company or yourself. It is you who must bear the burden of proof that the reason for your termination is unjustified.
You are not entitled to have the termination withdrawn if it is unjustified, but you may be entitled to financial compensation if you have been employed for 1 year or more at the time of termination.
If you are given notice, you must always contact IDA, who can help make a concrete assessment of your case and advise you on how to react.
Can I be terminated because of my age?
It will be unjustifiable if you are dismissed because of your age. It rarely appears from the termination itself that you are being terminated due to age, and therefore you must be able to demonstrate factual circumstances that give reason to believe that the termination is due to your age. This could be the case, for example, if you are dismissed in a larger round of redundancies, where the majority of those dismissed are older employees. In that case, the burden of proof can shift to your employer, who then has to prove that the termination is not due to your age.
If you are employed on a collective agreement, it will be legal to agree in it that your employment will automatically end when you reach a certain age.
If you are terminated without just cause, you are entitled to compensation. Therefore, always contact IDA for legal advice if you are terminated.
Can I be dismissed due to illness?
Illness is a legal absence that entitles you to full pay during the absence, but it does not mean that you are protected from being fired due to illness.
It may be reasonable for the employer to fire you due to illness if your sick leave has been long-term, if your sick leave has had a negative impact on operations, and if it is unclear at the time of termination when you will be able to return full-time.
If you are fired without just cause, you are entitled to compensation. Therefore, always contact IDA for legal advice if you are terminated.
Read more about illness and absence
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What is the 120 day rule and when does it apply to termination?
If you have been ill for 120 days within the last 12 months, you can be dismissed by your employer with one month's notice, regardless of how long you have been employed, if a number of conditions are met:
- You are ill at the time of termination.
- The termination takes place in immediate connection with the expiry of the 120 sick days.
- It is explicitly stated in your contract that you are covered by the rule.
- You are a private sector employee (public sector employees must be terminated with the usual notice).
If even one of the conditions is not met, you are entitled to your normal notice of termination according to your contract. It will typically be the condition that the termination must take place in immediate connection with the expiry of the 120 sick days that have not been met, as the employer counts the sick days incorrectly.
There are strict requirements for counting days when on part-time sick leave, so you should contact IDA so that we can ensure that the days have been counted correctly.
A termination that is justified in the 120-day rule will usually be valid.
Read more about the 120 day rule
When am I entitled to severance pay?
You are entitled to severance pay according to the Civil Service Act if you are terminated after long and faithful service. Severance pay is calculated based on your length of service, and you are entitled to:
- 1 month's salary in compensation when you have been employed for 12 years at the time of termination.
- 3 months' salary in compensation when you have been employed for 17 years at the time of termination.
The severance pay must be paid with the last month's salary, and it is calculated on the basis of your full salary package.
You will not be entitled to the severance pay if you resign your position yourself, unless you counter-terminate your position. You will also not be entitled to the severance pay if you are justifiably immediately dismissed without notice (a summary dismissal).
You may also be entitled to severance pay as part of your collective agreement at your workplace.
Can I counter-terminate my position?
If you are given notice by your employer, you do not have the right to be released from your duties, and therefore you must continue to work throughout your notice period. If you resign yourself after being fired, this is a counter-termination, and then your own notice of termination of one month applies - unless you have agreed on a mutually extended notice of termination.
You must send your counter-termination no later than the last working day of the month if it is to apply from the following month. The same rules apply to a counter-termination as to an ordinary termination.
When you counter-terminate your position, you keep the right to the severance payment for being employed for more than 12 and 17 years. However, it is a condition that you still have the required seniority at your last day of employment at the company. Otherwise the right to the severance pay lapses. We will recommend that you contact IDA in this situation before you counter-terminate to make sure that this condition is still met.
Who are specially protected employees in the event of termination?
Your employer must treat all employees equally – also in a termination situation. This means that your employer must not attach importance to the following criteria in a termination.
- Your gender, e.g. that you are pregnant or that you are on/will be on leave
- Your ethnicity
- Your religion
- That you have a disability
- Your age
- Your sexuality
- Your political beliefs
You often also have special termination protection if you are elected as a trade union representative in accordance with a collective agreement.
If you are elected as an occupational health and safety representative at a company with a collective agreement, you have the same dismissal protection as the trade union representative. If there is no collective agreement or no comparable collective agreement, you, as the elected occupational health and safety representative, only have the dismissal protection that white-collar workers have under the Danish Salaried Employees Act.
However, under the Working Enviroment Act you will in this situation be entitled to get your notice period extended with 6 weeks.
You can still be terminated while being pregnant, but the special dismissal protection consists in your employer having to lift the burden of proof that the termination is not wholly or partly due to to the pregnancy.
If you are unfairly terminated, you are entitled to compensation. Therefore, you must always contact IDA for legal advice if you have been dismissed.
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What can I write on social media, e.g. LinkedIn, when I have been dismissed?
You can write that you are looking for a job and similar things on LinkedIn and other social media, but you still have a duty to be loyal to your employer.
This means, among other things, that you must not damage the company's reputation or harm its interests. You must therefore refrain from posting negative comments about your employer.
You should also be aware of whether you are subject to certain restrictions as part of your terms of employment. For example, there may be a reasonable and objective internal policy that posts on social media mentioning the company require the company's approval.
Am I entitled to payment for flexitime hours?
As a general rule, you are not entitled to payment for excess flexitime hours when you leave your job. However, your contract, collective agreement or local working time regulations may stipulate that you are entitled to payment for these hours.
Even if you are not entitled to payment or time off in lieu, you should try to reach an agreement with your manager on how to use up your flexitime during the notice period so that it is not lost.
What are my options for taking courses when I have been dismissed?
Your options for taking courses during a notice period are the same as during your previous employment.
However, employers are typically not interested in spending extra time and money on training dismissed employees.
In some cases, you may be able to quickly finish and hand over your tasks, in which case you can suggest a plan to your manager that aims for either a leave of absence or more time off during the notice period. In return, the employer gets a highly motivated employee for the remaining time you are employed.
This gives you the opportunity to use the freed-up time to take a course or focus on your job search.
If your employer has offered you an outplacement programme as part of your dismissal or as part of a severance agreement, you can try to negotiate to take a relevant course instead, which can increase your chances of finding employment.