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The Employers' and Salaried Employees'(Legal Relationship)(Consolidation) Act, 1996

(Translation)

Act No. 642 af 28 June 1996

The Employers' and Salaried Employees' (Legal Relationship), (Consolidation) Act(No. 516 of 23 July 1987), as amended and consolidated by Act No. 287 of 24 April 1996.

Section 1. (1) For the purposes of this Act the term "salaried employees" shall mean

(2) This Act only applies in cases where the person concerned is employed by the employer for at least 15 hours a week on average and occupies a position in which he or she works under the instructions of the employer.

(3) The provisions of this Act shall not apply to civil servants or probationary civil servants in the state sector, the primary school system, the Danish National Church, or the local authorities, to salaried employees covered by the Seamen's Act of 7 June 1952, or to apprentices covered by the Apprenticeship Act. Notwithstanding the above, the provisions laid down in Sections 10 to 14 shall apply to salaried employees covered by the Seamen's Act.

Section 2. (1) The employment contract between the employer and the salaried employee may only be terminated by the parties after prior notice has been given in accordance with the rules mentioned below.

(2) Termination of the employment contract on the part of the employer shall be made on the basis of at least:

(3) The period of notice in Subsection (2) (ii) shall be increased by one month for every three years of service, subject to a maximum of six months.

(4) If the employer can substantiate that it has been agreed that the work is of a purely temporary nature and that the employment relationship is not to exceed a period of three months, the rule laid down in Subsection (2) (i) shall not apply.

(5) If the employer can substantiate that the engagement is probationary and that the employment relationship does not exceed a period of three months, termination on the part of the employer may take place by giving notice of at least 14 days.

(6) Termination on the part of the employee may take place on the basis of one month's notice with termination to take place at the end of that month, unless it has been agreed that the work is of a purely temporary nature or probationary and the employment relationship does not exceed a period of three months. However, it may be agreed in writing that a longer period of notice shall be given by the employee provided that the period of notice to be given by the employer is extended correspondingly.

(7) The notice shall be given so early that the retirement with the notice prescribed for the period of employment can take place before the expiry of that period. Notice under Subsections (2), (3) and (6) of this Section shall be given in writing not later than the last day of the month from the end of which the period of notice begins to run.

(8) If a salaried employee continues to work in an enterprise after a change of ownership, the period during which he was employed in the enterprise as a salaried employee before the change of ownership shall be taken into account in connection with the calculation of the period of employment.

(9) If the enterprise provides residential accommodation for the use of the salaried employee and his family as part of the contract of employment, the period of notice on the part of the employer shall be at least three months. The employee shall be entitled to occupy the dwelling together with his or her family on payment of the agreed rent (or rent-free, as the case may be) for up to one month after termination of the employment relationship, and the employee's family shall have the same right in the event of his or her death. If the employer considers it necessary - for operational reasons - it shall, however, be entitled to claim immediate possession of the premises - against payment of costs relating to the removal.

(10) In the event of a work stoppage the rules of the labour market organizations concerning notice shall prevail over the above provisions.

Section 2 a. (1) In the event of dismissal of a salaried employee who has been continuously employed in the same enterprise for 12, 15 or 18 years, the employer shall, on termination of the employment relationship, pay a sum to the employee corresponding to one, two or three months' salary respectively.

(2) The provision laid down in Subsection (1) shall not apply if the employee is entitled to old-age pension on termination of the employment relationship.

(3) No severance allowance will be payable, if the employee will - on termination of the employment relationship - receive an old-age pension from the employer and if the employee has joined the pension scheme in question before attaining the age of 50 years.

(4) The provision laid down in Subsection (3) shall not apply if the question of a reduction or lapse of severance allowance due to payment of old-age pension from the employer has been settled by collective agreement as of 1 July 1996.

(5) The provision laid down in Subsection (1) shall be correspondingly applicable in the event of unjustified dismissal.

Section 2 b. (1) If the dismissal of a salaried employee who has attained 18 years of age and who has been continuously employed in the enterprise concerned for at least twelve months prior to the notice of termination is not considered to be reasonably justified by the conduct of the employee or the circumstances of the enterprise, the employer shall pay compensation. The amount of such compensation shall be determined with due regard to the period of service of the employee and any other circumstances of the case, but it may not exceed the salary of the employee for a period corresponding to one-half of the period of notice to which the employee is entitled under Subsections 2 (2) and (3). However, if the employee has attained the age of 30 years at the time of notice of termination, the compensation may amount to up to three months' salary.

(2) If a salaried employee has been continuously employed in the enterprise for at least ten years, the compensation mentioned in Subsection (1) may amount to up to four months' salary. After 15 years' continuous employment in the enterprise the compensation may amount to up to six months' salary.

(3) The provisions of this Section shall be correspondingly applicable in the event of unjustified dismissal.

Section 3. (1) If the employer refuses without good cause to accept the services of the salaried employee or dismisses him without good cause and if the employee has at the time when the relationship is severed a right to not more three months' notice under Section 2 of this Act, the employer shall be liable to pay compensation corresponding to the employee's salary up to the date on which he or she could have been lawfully dismissed or - if he or she has already been dismussed - up to the expiry of the period of notice, provided that no higher amount of damages is payable under general rules of law.

(2) If the salaried employee has a right to more than three months' notice at the time when the relationship is severed without good cause by the employer, the amount of damages shall be fixed in accordance with general rules of law. However, the employee shall, as a minimum, have a right to an amount of compensation corresponding to his or her salary up to the date of termination of the employment relationship with three months' notice in accordance with Section 2 of this Act.

(3) If the salaried employee is engaged for a fixed term of three months or less, rules corresponding to those laid down in Subsection (1) shall apply. If the employee has been engaged for a fixed term exceeding three months and the employer without good cause refuses to accept the services of the employee or dismisses him at a time when there are still more than three months to run before the expiry of the agreed period of service, rules corresponding to those laid down in Subsection (2) shall apply.

(4) The provisions of this Section shall also apply if a salaried employee terminates the employment relationship due to gross default on the part of the employer.

Section 4. If a salaried employee fails without good cause to perform his or her duties or abandons his or her work, or if the employer terminates the employment relationship due to gross default on the part of the employee, the employer shall be entitled to compensation for any loss incurred by it as a result thereof. In the event of unlawful absence from work or desertion, the employer shall, as a minimum, be entitled to compensation corresponding to half a month's salary, in the absence of special circumstances.

Section 5. (1) If a salaried employee becomes unable to carry out his work due to illness, the resulting absence from work shall be deemed to be a lawful absence unless he or she has contracted the disease intentionally or by gross negligence during the period of employment or if he or she has fraudulently failed to disclose - at the time when he or she commenced employment - that he or she was suffering from the disease in question.

(2) However, it may be stipulated by written agreement in each particular case that the salaried employee may be dismissed with one month's notice for expiry of the employment relationship at the end of a month, if the employee has received his salary during periods of illness for a total period of 120 days during any period of twelve consecutive months. The validity of the notice of dismissal shall be dependent on it being given immediately on the expiry of the 120 days of illness and while the employee is still ill, but its validity shall not be affected by the fact that the employee has returned to his work after the notice of dismissal has been given.

(3) If the employer provides board and lodging for the employee as part of his salary, the employer shall be required to provide for the necessary care of the employee during illness, so long as the employee stays in the lodging of the employer.

(4) In the case of illness lasting for more than 14 days, the employer shall be entitled, without expense to the salaried employee, to request further information as to the duration of the employee's illness from the attending medical practitioner or from a specialist chosen by the employee. If the employee fails to comply with this requirement without good cause, the employer shall be entitled to terminate the employment relationship without notice.

Section 6. (1) The fact that a salaried employee is called up for national service (whether civil or military) shall not entitle the employer to dismiss the employee; in such a case the employment relationship may only be terminated by giving notice under the provisions of Section 2 of this Act, and the employee shall be entitled to receive his salary in accordance with the provisions of Subsection (2) below. However, the employee shall be required to notify the employer as soon as he has been informed of the date on which he is to report for duty, but at the earliest at a time before the reporting date such that the employee would otherwise be entitled to give notice of termination of the relationship under the rules laid down in Section 2 (6) of this Act for expiry at the end of the month preceding the reporting date. Failure to do so shall entitle the employer to terminate the contract without notice with effect from the reporting date the first time the employee is called up and, in the case of subsequent periods of national service, to claim compensation for the loss caused by such failure to notify.

(2) A salaried employee is not entitled to receive his salary during the first period of national service, but the employer shall, in the event of any subsequent periods of national service, be required to pay the salary of the employee for the month in which he is called up and for the following month.

(3) After discharge from such military service the salaried employee shall be entitled to reinstatement in his or her post with the same seniority. If the employee wishes to avail of this right, he or she shall inform the employer thereof when providing notification about his call-up under Subsection (1), and in such case he or she shall be required to return to his or her post upon discharge.

Section 7. (1) With a view to the employer's organisation of the work a female salaried employee shall, not later than three months before the expected date of her confinement, inform her employer of the expected date for the start of her maternity leave.

(2) During the pregnancy of a female salaried employee, the employer shall pay her half of her salary for up to five months as of the commencement of her incapacity for work, however, not such payment shall be made for not more than three months prior to confinement and not more than three months after confinement. The same obligation shall apply if the employer does not consider it possible to employ her notwithstanding the fact that the employee is not incapable of work. If the employer dismisses the employee, it shall be required to pay her full salary until the employment relationship can be terminated with the period of notice to which the employee is entitled.

Section 8. In the case of the death of a salaried employee, the surviving spouse or children under 18 years of age for whom the employee was responsible to maintain shall be entitled to receive one, two or three months'salary if the employee had at the time of death been employed in the enterprise for one, two or three years, respectively.

Section 9. (1) Where the work of a salaried employee in the service of the employer entails expenses for travelling, costs of subsistence away from the home etc. the employee shall be entitled to payment of all necessary expenses by the employer and the latter shall be required to give the employee an appropriate advance for the payment of such expenses. This shall apply also if it has been agreed that such expenses are to be paid out of the agreed salary or commission and the sales effected are insufficient to cover normal costs.

(2) Advances of commission paid to a salaried employee may only be recovered by the employer from salary due to the employee or earned commission and may not be recovered as ordinary debt.

(3) The payments and allowances provided for in Sections 2 b, 3, 5, 6, 7 and 8 of this Act shall in respect of salaried employees paid by commission be calculated on the basis of the sums which the employee could presumably have earned by way of commission if he or she had not been prevented from performing his or her work activities during the periods in question.

Section 10. (1) Salaried employees shall have the right to organise for the protection of their interests and to give their organisations information about their own pay and working conditions.

(2) Any group of staff shall - irrespective of its number - be entitled to demand, through their organisation, negotiations with the management of the enterprise on pay and working conditions.

(3) It shall be the duty of the employer to ensure that records of such negotiations are drawn up and signed by both parties; a copy thereof shall be submitted to the employer as well as to the salaried employees.

(4) If no agreement can be reached between the parties during the negotiations or if one of the parties refuses to take part in the negotiations, either party shall be entitled to request that the negotiations be continued with the assistance of a conciliator in accordance with rules laid down in Sections 11 to 13 of this Act.

Section 11. (1) The conciliators mentioned in Section 10 of this Act shall be appointed for each specific case, in Copenhagen and Frederiksberg by the Industrial Court and in the rest of the country by the prefect of the county in which the employer巗 enterprise has its registered office.

(2) Application for the appointment of a conciliator shall be made in writing and be accompanied by the records mentioned in Section 10 (3) of this Act, as well as a brief statement of the facts of the case. However, in cases where conciliation is requested because one of the parties has refused to negotiate, only a brief statement of the facts of the case shall be enclosed.

Section 12. (1) Not later than five days after his or her appointment, the conciliator shall summon the parties for negotiations and fix the time and place for the meeting.

(2) In the negotiations taking place under his or her responsibilty the conciliator shall try to reach agreement between the parties. If no agreement can be reached, the conciliator shall submit a report on the negotiations to the authority which appointed him or her. A certified copy of the report shall be communicated to the parties at the same time.

Section 13. Failure to keep records of proceedings referred to under Subsection 10 (3) of this Act and failure to appear before the conciliator shall be sanctioned by a fine which shall accrue to the Exchequer.

Section 14. (1) The conciliators shall receive a fee which shall be fixed by the Minister of Labour.

(2) Expenses in connection with the conciliation procedure shall be advanced from public funds, but shall be shared equally by the parties and may be recovered by levying execution.

Section 15. A salaried employee shall have the right to perform duties outside his or her employment without the employer's consent, provided that such duties can be performed without inconvenience to the enterprise.

Section 16. After a salaried employee has given or received a notice of termination of the employment relationship the employer shall, without reduction in salary, permit him or her to be absent from work as necessary for the purpose of finding new employment. In this connection, the employee shall pay due regard to any wish of the employer that the job-seeking activities should take place at such times as are most convenient for the operation of the enterprise.

Section 17. (1) A salaried employee shall at any time be entitled to demand from his or her employer a certificate in writing indicating the duration of service, the type of work functions primarily performed, the amount of salary and - in the case of dismissal - if he or she so requests, the reasons for the dismissal.

(2) Failure to comply with this provision shall be sanctioned by a fine which shall accrue to the Exchequer.

Section 17 a. A salaried employee who - by agreement or practice - is partly remunerated in the form of commission on profit, bonus, or similar payments, and who terminates his or her employment during a financial year, shall be entitled to a pro rata share, having regard to the length of service during the financial year, of the payment he or she would have received if employed in the enterprise at the end of the financial year or at the time when the payments are made.

Section 18. If a salaried employee has - for reasons of competition - made a commitment not to carry on a trade or other business of a specified type, nor to accept employment in any such trade or business, the provisions of Sections 36 and 38 of the Danish Contracts' Act, 1917, shall apply. The commitment mentioned in the first sentence of this Section may only be made with legal effect by an employee holding a post of responsibility or who has concluded an agreement with the employer on the right to use an invention made by the employee. The commitment shall be binding on the employee only for a period of twelve months as of the date of termination of employment relationship, unless reasonable compensation has been received under a written agreement restricting the employee's access to employment. The amount of compensation shall be specifically stated in the contract.

Section 19. (1) Advertisements shall not state that an employee who is not liable to preform national military service is wanted or preferred, or that the person seeking employment is not liable to perform national military service.

(2) Advertisements shall not indicate that engagement is conditional upon contribution of capital or that preference will be given to an applicant who is able to make such a contribution.

(3) If an enterprise advertises for employees without stating the name and address of the enterprise, the advertisement shall clearly indicate what training and other qualitications the applicants must possess, as well as the minimum salary for the work in question.

(4) Where a cash deposit is required before the employee takes up his duties, the name and address of the enterprise must be stated in the advertisement.

(5) Failure to comply with these provisions shall be sanctioned by a fine which shall accrue to the Exchequer.

Section 20. (1) When a salaried employee is required to raise a sum of money or other assets as security, the said sum or assets shall be deposited with a financial institution and may be withdrawn only with the signature of both the employer and the employee.

(2) Failure to comply with this provision shall be sanctioned by a fine which shall accrue to the Exchequer.

Section 21. (1) Any agreement between the employer and salaried employee that any provisions of this Act shall not apply are invalid to the extent that such an agreement is prejudicial to the employee concerned.

(2) The Minister of Labour may establish rules to the effect that the provisions in Sections 2, 5 and 7 (2) of this Act may not apply if this is required for the best interests of the employee.

Section 22. (1) This Act, which shall not extend to the Faroe Islands, shall come into force immediately .....(transistional provisionsomitted).

(2) Act No. 168 of 13 April 1938 on the Legal Relationship between Employers and Salaried Employees in Private Industry shall be repealed with effect from the date of commencement of this Act.

(3) This Act may by Royal Order be given effect in Greenland subject to such modifications as are deemed appropriate having regard to the special conditions in Greenland.

Ministry of Labour, 28 June 1996